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DDX
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DDX
3,562 posts
Nomad

many people know about the recent (is it recent? seems like ages ago, but yes it is relatively recent) downturn in the economy.

and I'll keep my points short since I know not many people have very long attention spans.
but

recently the price of gold has nearly risen to over 1100 USD per ounce.

many people are basically digging trenches in their backyard and moving their assets into gold bullion (which always holds it's value basically since it is set apart from currency)

since 5 years ago (the bush administration) it has increased 175% if that gives you an idea of the inflation (is it correct to call it inflation?)

some questions to get the discussion going
but do you guys think it is a smart idea to move assets into gold?
would you do it if you could?

  • 16 Replies
Sassin
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Sassin
170 posts
Nomad

I think gold is next to worthless seeing as you can't eat it or use it for anything except making a pretty ring or necklace out of it.

goumas13
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goumas13
4,752 posts
Grand Duke

You should buy gold when the prices are falling, not when they are rising.
Some time ago it was the right time to move assets into gold. I don't think is smart buying now.

ShadowNekoAngel
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ShadowNekoAngel
100 posts
Nomad

Goumas: Or when the just start to rise..

I think Gold ish pretty. <.<

DDX
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DDX
3,562 posts
Nomad

I think gold is next to worthless seeing as you can't eat it or use it for anything except making a pretty ring or necklace out of it.


cash money is worthless seeing as you can't eat it or use it for anything except making a pretty ring or necklace out of it.
http://www.instructables.com/image/F5X3AVL9UPEYVZCCVM/Dollar-Bill-Ring-Bling.jpg
ring.



You should buy gold when the prices are falling, not when they are rising.
Some time ago it was the right time to move assets into gold. I don't think is smart buying now.

I agree gourmas, but the thing is the prices are still rising. because more and more people are putting their deflating currency into gold right now. so it doesn't really matter. since new projected gold prices are going to be hitting 1600 by december at least
MRWalker82
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MRWalker82
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Shepherd

I think that anyone with a portfolio of any value would be wise to keep it where it is unless you invested horrendously, however a new investment in gold, or a diversification of an existing and poor portfolio is a good financial move to guarantee some small amount of stability.

However the thing to keep in mind is that although the cost of gold is rising rapidly now, it most likely won't continue to do so for much longer, especially as we begin to pull out of our correcting market and we see the decline of the recession.

I'm not an economist or investment broker, so I would suggest a fair amount of investigation into my claims before you use this as advice for your own portfolio.

DDX
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DDX
3,562 posts
Nomad

I think that anyone with a portfolio of any value would be wise to keep it where it is unless you invested horrendously, however a new investment in gold, or a diversification of an existing and poor portfolio is a good financial move to guarantee some small amount of stability.


yea I diverted about 30% of my portfolio into gold now, instead of 10%

However the thing to keep in mind is that although the cost of gold is rising rapidly now, it most likely won't continue to do so for much longer, especially as we begin to pull out of our correcting market and we see the decline of the recession.

well I mean we just arent going to hop out of a economic recession like that.
MRWalker82
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MRWalker82
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Shepherd

well I mean we just arent going to hop out of a economic recession like that.


No but if you look at investment trends over time the value increase of precious commodities tends to see a sharp decline in growth as we prepare to exit a correcting market and economically get back to an 'even keel' so to speak, as investors tend to be willing to reinvest in other aspects of the market.
DDX
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DDX
3,562 posts
Nomad

I somehow find gold useless; I think silver looks better. Gold might be a good investment, thou. I mean, if you get it sooner rather than later.


well I think silver is like 40 dollars an ounce and it rarely grows. (compared to 1200 an ounce for gold)

but I agree and so does the whole world apparently.
but talking with a jeweler she said that the younger generation likes white gold, instead of the traditional yellow gold
Kyouzou
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Kyouzou
5,061 posts
Jester

I have to admit, to me white gold does have more of an appeal than yellow gold. And it is definitely a good investment, as I doubt that unless a rather large amount of 24k gold was suddenly found that the value would drop by much.

DDX
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DDX
3,562 posts
Nomad

well I bought around 2 ounces of gold bullion earlier this week at 1100 ish, my return investment is already 200 USD.

gtfawjkjg
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gtfawjkjg
1,126 posts
Nomad

I don't have any gold bullion but, I do have pure gold coins! (not those stupid gold quarters) Since they are coins, they are increasing in value faster then regular gold because its harder to get older coins. So if you wanna get even more cash get gold coins.

DDX
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DDX
3,562 posts
Nomad

I don't have any gold bullion but, I do have pure gold coins! (not those stupid gold quarters) Since they are coins, they are increasing in value faster then regular gold because its harder to get older coins. So if you wanna get even more cash get gold coins.


true dat friend. but you also have to remember that the price of coins depends on the person. b/c some people price gold by weight instead of intrinsic value, you get what I'm saying? they will just melt the gold from the coin and smelt it into bullion.haha
Falcon4415
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Falcon4415
130 posts
Shepherd

Gold (and in general every physic goods) has a stable value as it's aside from currencies and common speculation (?). That's why in times of economic crisis people with more money than they need to live invest in these knd of goods (jewellery, gems, precious metals...). As for the current crisis, I've seen a true rising of the I-buy-gold business, due to thye fact that the majority of the people decided to invest in gold (I don't know how it has been in your countries).
So yeah, it's a good idea to invest, but keep in mind that you'll have to keep a little money for yourself for living.

SirNoobalot
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SirNoobalot
22,207 posts
Nomad

I think gold is next to worthless seeing as you can't eat it or use it for anything except making a pretty ring or necklace out of it.

yes, but ECONOMICALLY not materialisticaly gold is very valuable since the beginning of civilization shiny, precious ores like copper, silver and GOLD have been used for currency and because they wont rust or melt so easily. this is what gives gold its worth to the mind: shiny, heavy, stable
DDX
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DDX
3,562 posts
Nomad

So yeah, it's a good idea to invest, but keep in mind that you'll have to keep a little money for yourself for living.


yup. this is very true.

a normal portfolio might look something like this

10% gold
50% stocks
20% equity
15% house/worldly items
5% cash

but since equity is super downa and stocks are... meh

gold % increases well at least logically.
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