True or False

Over the years I've constantly see ads from Bullion and Coin Dealers that now's the time to buy Gold protect your wealth prices could go to $2000 an oz. I don't doubt that you should protect yourself by diversifying your investments but is it really a good time to buy Gold ? The economy is a disaster the goverment is printing money like no tomorrow and yet the prices are falling and the dollar is strengthing. Is this just a bunch of hype to sell Bullion or back to my original question is it the calm before the storm and a good time to buy?

 

Log in or Sign up to hide this ad.

I'm under the impression that if gold is priced in dollars, and the value of the dollar drops, that it will take more dollars to buy the gold. The gold didn't go up really, the dollar just got weaker. That said, I believe that gold will protect your dollars, if that makes any sense. I would be buying gold today to protect my dollars from dropping in value due to inflation, poor economy or whatever.

 

What he said....

 

I think when you have the "experts" from the government and the media say one thing one day, and another the day after, you have to think that it's anybodys guess.

I think gold can be part of a diversified portfolio but I don't think it will be a magic bullet if TSHTF.

 

man oh man

If you're really worried about when t.s.h.t.f. you need to invest in guns and bullets, not bullion. It's why they give food stamps to the poor, so they don't loot and riot. If you're that paranoid then you need to focus on maslows hierarcy of needs...food, shelter, clothing, security. Once you get beyond the basics you worry about your $. Bullion is good because it is a commodity not directly linked to dollar amounts. Most commodities aren't safe to hoard. Hoard alot of gas and you'll likely blow your house up (heard about that on the radio, it happens)

You could invest in anything you think will appriciate in value really, but precious metals have a long accepted history of value, and are the trappings of wealth. It is easy to store, save, calculate the value of, and eventually sell. I've seen stocks go belly up but I've never heard of a time in "modern" culture where precious metals were not worth something. Maybe you like classic cars. Spend your money on that if you think it's viable. Cars are a pain to maintain and a constant source of expense. There's insurance, storage, repairs, and unless you NEVER drive it (and what fun is that???) the very real risk of an accident. With bullion it seems rather simple, your biggest worries are proper storage and theft. And a market that will allow you to buy low sell high...which if you aren't looking to sell for 10-30 years is highly likely, much more certain than most investments at any rate.

Plus you don't pay any taxes until you sell. If you value your privacy, with this age of identity theft, no one can hack your account to steal your wealth of bullion if it is stored in a safe. You may consider having a more advanced home security system with more emphasis on the safety of your home, but isn't that a solid investment and worthwhile even if you didn't invest in bullion??? Your family and your home are worthy of the best protection you can afford. After that, buy collectable Elvis plates for all I care. Someone will probably be willing to pay you something for them...(there is no accounting for taste)

 

survivalists scare the the heck out of me....

 

Gold is down due to India not in a buy frenzy at the moment as well as the talk of taxing impots, which will make gold cost more there. Looks like a great time to buy in the 5-6% over spot if you can find it.

 

...still guys I would be careful, from my basic understanding of stocks and econ, when Stocks go down commodities go up. (excluding oil which normally drops with the market). Maybe someone who is more informed on this topic could shed some more light onto what I'm saying

 

That appears to not be happening anymore. They are calling it decoupled or decoupling.

 

True. Everyday is a good day to buy gold. The key to any investmant is time. If you structure a financial plan where you buy a certain amount of stocks, bonds, precious metals, over time with dollar cost averaging you should see a significant return.

The steady, monthly, yearly, purchase of gold makes sense. Would I take out a second mortgage to buy up as much as I can at this time? No thanks. I don't think the sky is falling ..yet. I'm more concerned about building income for the future.

 

I myself have been buying gold and silver slowly replacing portion of my savings. I am not going hog wild buying the PMs. If you are debt free your home and credit cards are paid and you have some savings I think it cant hurt converting (some) into gold and silver as a insurance policy. I myself think that maybe our government isn't telling the truth about our country's money problems. If you have debt I think you should pay it off before buying any PMs. As far as the stock market goes I wont put a dime into it! We had lots invested in the markets and my wife was smart enough to cash all 5.5 million of our invested money out 2 years before the crash! (I got a smart wife) Our money now sits in Cd's earning only 2% interest but we sleep at night!

 

It's called market manipulation. If what's happening doesn't make sense, there's probably a good reason.

Here's a long but good article I read this morning. There's a part 2 at the bottom.
http://www.marketoracle.co.uk/Article11948.html

Skim through it if you wish or read the whole thing. Some interesting numbers that some have come up with that fly in the face of what you'll hear on the news. (i.e. GDP at -5% and has been in negative territory since 1994)

Maybe it won't happen in our lifetimes but I think eventually, PM prices will be unleashed once the train goes off the rails.

I don't believe we need to see hyperinflation or have a total SHTF scenario unfold to see very significant gains compared to where we're at now.

In hindsight, the safest time to buy was in the early 2000's. Now, there is much greater risk in spending on one ounce of gold what could have purchased 3 ounces only 7 years ago. But I think the longer it sustains these levels, the safer it becomes.

Because of manipulation, we don't really know what PM's are worth. If the Fed let PM prices spiral out of control, it would cause people to lose faith in their paper money which is the last thing they want or can afford to let happen. If metals are falling (for no apparent reason), there is no 'buzz' and people aren't driven to them. Instead, it looks better to gamble in the stock market at these levels, which is what the rich elite want the working class of this country to do. That way they can more easily and legally fleece them again some day.

As for your question, pick price points and draw your own conclusions.

Like you say, the economy is a disaster and they're printing money like never before. But PMs are mysteriously dropping. We're in the middle of an enormous, unpaid for, economic stimulus package and we're *maintaining* a very bad economy. The markets are slowly falling. What happens next year with no stimulus?

 

Any price below $1000 is a good one for gold. Any price below $20 is a good one for silver. Of course, the lower the better. I think it is sound portfolio policy to keep 10% in the metals. Forget about the survivalists. It's a terrible mindset to live with, and nothing can really protect you from the apocalypse anyway. Ironically, over the decades, the survivalists seem to have the lowest survival rate. The folks who value community and cooperation fare much better.

So to answer your original question, yes, this is a great time to buy.

 

Just my opinion but I am buying numismatic gold only and only because I like it. I was a buyer under $400 an ounce because there was room for it to double, but at $950 an oz I just not see that. I remember people talking about Cisco stock just before the dot com boom, they kept saying it will keep going up, also I remember people talking about Phoenix real estate during the boom saying it will keep going up. When prices are at or near historic highs and everyone says it will keep going up it is a good time to sell.

 

One thing to keep in mind, Danr, is that the dot com stocks only went down after the general public loaded up on them. The general public doesn't even know how to buy gold yet, and institutions are just dipping in a toe. So this is more like 1996 than 2000. I think gold is an easy double from $900 over the next 5 years, and that might turn out to be conservative. Of course, this is only opinion since nobody can predict the future. But this is based on being involved continuously in the market since the 70s. When things move up, they can move higher than anybody imagines. And when the fall, they fall farther than what seems possible. That's just the way it is. There's no fever like gold fever.

 

Right now gold is high while platinum and palladium are depressed. If I wanted to invest in PMs, I would be selling the former to buy the latter. Additionally, gold has very little upside potential because people just won't buy it for much above $900/oz. Go read the editorials on kitco.com, some are very enlightening.

 

I will be buying up to $1000. I believe in the future it will be a cheep price!

 

Gold

First I would say that Government talking heads are trying to keep the lid on the monetary system. Experts they might be, but not in running a business. They have no idea about the deadly sin of spending more than you have, and printing money to cover the deficit. We ultimately pay for the greed of their ways. Corruption in America and other countries is now out in the open.
Gold is expensive and silver could be the "new gold " .
If inflation hits , many have never really seen what happens ! If you tax in a recession that is where you will stay.
The Goverment will not give up the massive bureaucracy,and do what we can to defend our people according to Constitutional Law ! They will wring every dollar from those who have it. Gold and silver could be the answer as they start to spend this Stimulus ( TAX ) that we will pay on for a geneations to come and make little head way.
People do not have money to buy gold or put away savings if they are a family of four plus. For some the Government will be a way out for now but will be a regrete of a lifetime.
If you have cash in excess, 10% in PMs would be good. More if you can afford it. Having spent all our money does not bode well for the future and there are few ways to find a safe haven for cash.
Cap and trade is a tax, health care is a tax, and not bridging to new energy in an evoluionary way is a tax.
You can not tax your way out of this mess.
The old, your parents and grandparents will suffer with cap and trade and restricted healthcare.
The country wants young well educated high earners. They will pay higher taxes.
Gold and silver are not an idea, but could be the only idea that can keep you afloat.

Pep

 

Just when you thought the U.S. banking system had regained its footing, the reality is that a carefully woven federal-government PR campaign may actually be masking the next phase of the worst financial crisis since the Great Depression.

Indeed, it's what's just out of sight that has some analysts and economists scared to death. I have 30% of life saveings in GOLD! I have reached my limit on buying any more I figure you should also have cash money.

 

needs

Silver rounds and 40-90% silver should buy some food or what ever.
We ar Americans, our country is ours. It is not for sale !
Our vote belongs to no party to take for granted.
Register as an independent. Vote out all incumbents.
Violation of basic law is being carried out by Congress and the lobby they owe their votes to.
We are a Democratic Republic not a Socialist toy to be played with.

I speak for no others, these are my opinions only.

This might belong in the political forum.

Pep