Gold As An Investment?

[Pot Odds RAC 23]

Gold hit an all time high of $1087/oz today.

The strangest thing is rounds still outpace spot by about 20%

[aucu 3]

is this seriously how you thought up your username on FCP?was this your purpose?

I have no purpose.

[strategy 4]

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[aucu 3]

Gold tops US$1110Gold has no purpose?Why would you take this position?http://www.thisismoney.co.uk/markets/artic...ticle_id=493225Gold price smashes through $1,100 barrierPhilip Scott, This is Money9 November 2009, 12:37pmThe gold price has hit yet another new high on the back of a floundering greenback and rising concerns over major central bank policies.The G20 meeting at the weekend reinforced views that US interest rates are unlikely to rise any time soon.The US dollar, which gold is a primary hedge against, hit the skids after figures were published on Friday showing that the US is enduring the highest unemployment numbers since 1983.The dollar index, which tracks the currency's worth against other currencies, slipped 0.9% to a two-week low of 75 today. Recent gains in the gold price have tended to come as the dollar weakens.In 2009, the dollar has already lost more than 7% against its main rivals. The price of gold is now up by some 45% over the past 12 months.Nicholas Brooks, at ETF Securities, said: 'The most recent surge in the gold price appears to be directly linked to statements over the weekend by the G20 that they will keep the fiscal and monetary pumps operating at full speed despite the already unprecedented rise in global high powered money and deterioration of government finances.'Discussions about possibly implementing a Tobin Tax on currency trading to try to reduce financial volatility also appear to have increased investor uncertainty.The most recent move in the gold price builds on the sharp rise last week that was stimulated by the announcement that India will buy 200 metric tons ($7bn) of International Monetary Fund (IMF) gold. Many market participants view this purchase as just the tip of the iceberg, with China, Russia and other central banks also indicating their intention to build up gold holdings as part of their strategy to diversify away from the US dollar.Brooks said: 'This morning's move in the gold price is a clear negative vote on the current trajectory of government monetary and fiscal policies.'Mining shares soared on the news of gold's new high. By 12.30, Kazakhmys was up 5% to 1,272p and Fresnillo was 4% better at 874.5p. Rio Tinto and Xstrata also bounced 4% on the day to 3,028p and 999p respectively.

[strategy 4]

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[aucu 3]

in the context of all the different places one can put money, gold is similar to a cat.on an unrelated note, my small position in gold has netted almost 40% in just a few months.

I never "put money" in gold but to la large extent it's my life's work and the focus of my business, the last month has been amazing for my share prices, if things hold up reasonably, that being gold not going below $900 that would make for a great cash in the second Q of 2010.Anyone buying at these prices has to be careful.Physical gold I've got only about 10oz including jewelry so it's irrelevant.

[kreppsen 0]

The one who said gold was a terrible investment, why?I'm not really that much into investments due to my age, but wouldn't gold be ideal to invest in if you're looking for something long term and safe? Let's say you wait until the Au price is low, 800$ w/e. It will go up and down some but from time to time it will probably rise to about 1k?Also, gold doesn't "go broke", like companies can do in hard times. The market will always want gold because, people get married, give eachother presents and engage themselves making a constant demand on the material and giving it a somehow stable price, and this again causing gold to be a more safe investment than putting it all in shares. It will go up and down just like everything else but in the long term even my grandma will be able to sell with profit. It's all about having ice in your stomach and having a personal economy strong enough to hold, even though your investments are on a downswing.

[strategy 4]

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[aucu 3]

The one who said gold was a terrible investment, why?I'm not really that much into investments due to my age, but wouldn't gold be ideal to invest in if you're looking for something long term and safe? Let's say you wait until the Au price is low, 800$ w/e. It will go up and down some but from time to time it will probably rise to about 1k?Also, gold doesn't "go broke", like companies can do in hard times. The market will always want gold because, people get married, give eachother presents and engage themselves making a constant demand on the material and giving it a somehow stable price, and this again causing gold to be a more safe investment than putting it all in shares. It will go up and down just like everything else but in the long term even my grandma will be able to sell with profit. It's all about having ice in your stomach and having a personal economy strong enough to hold, even though your investments are on a downswing.

Gold can be a good place to put a part of your portfolio but I would only recommend 5-10% of your assets but even though it is still going up you have missed most of the up side and buying now would be high risk. Unless you believe that the US$ is going off a cliff.Today gold hit a new all time high of $1173http://www.financialpost.com/news-sectors/...html?id=2255945

[mtdesmoines 3]

Gold can be a good place to put a part of your portfolio but I would only recommend 5-10% of your assets but even though it is still going up you have missed most of the up side and buying now would be high risk. Unless you believe that the US$ is going off a cliff.Today gold hit a new all time high of $1173http://www.financialpost.com/news-sectors/...html?id=2255945

The dollar ... she ain't gonna be what she used to be. Everyone but the Chinese wants the dollar to be about 28 cents. Believe it or not, although you have much more connection to the industry of gold than I do, because I'm watching the politics of money, I think gold is still a bargain. http://www.businessmirror.com.ph/home/opin...ll-devalue.htmlMore serious, though, is the risk of future substantial dollar depreciation. The US government is printing more dollars that are “worth” less. Why would the US government devalue the dollar? To more easily pay off its $20-trillion public debt in exactly the same way our butcher paid off his debt with smaller chickens.http://www.forbes.com/2008/12/09/dollar-de...oapbox_inl.htmlHere it is. Stand back. World currencies should be devalued overnighthttp://www.goldline.com/market-news/gold-n...on-is-here.htmlI still contend that we are headed for a massive dollar devaluation, regardless of the means--whether it is planned and accomplished by central banks, or by the markets reacting to huge government money printing that force the devaluation....http://www.dailyreckoning.com.au/federal-r...lar/2009/03/27/In my view, this latest development of the Federal Reserve monetizing debt is inflationary and confirmation that the Federal Reserve wants to debase the U.S. dollarhttp://www.currencyconverter.co.uk/article...lue090404095854Can the IMF force the dollar to devalue?Theoretically this question should be a very easy one to answer. The IMF is the police officer, charged with policing economies around the world. So in theory, yes the IMF can force the United States government to devalue the dollar but since the IMF actually has a large share of the voting rights allocated to the US, then it would effectively mean that the rest of the world practically, would have to gang up on the US, to make this happen.Welcome to New America.

[aucu 3]

Gold still on a heater at $1186 now.

[aucu 3]

Took a while but it broke $1200 today, still a ceiling but don't see the train stoping just yet.please please please at least 6 more months at these levels.

[Jeepster80125 0]

John Paulson Likes Gold…More Than a FriendJohn Paulson of Paulson & Co, the legendary hedge fund manager who made tens of billions betting on the mortgage crisis between 2007 to 2009, likes gold. He really likes it. He likes gold more than a friend.To most market participants, this is not news, but here’s something you probably didn’t know: Paulson owns more gold than several major countries! CombinedHere’s how we get that 110 tonne abstract to represent his gold position:Based on several analyses of his filings, Paulson’s wagering roughly 15% of his $30 billion hedge fund in the precious metal ($4.3 billion). His investment is spread out between ETFs, physical bullion and shares of gold mining stocks, but for the purpose of this discussion, we’re going to look at them in the aggregate as representational of a bet on gold (which they are).I am using the “tonne” as my unit of measurement because that is how the World Gold Council measures a nation’s gold reserves. A tonne is a metric ton, it equals 1000 kilograms.Assuming Paulson & Co currently owns $4.3 billion worth of gold and using the recent price of $1100 per ounce of gold, we come up with a total of 3.9 million ounces:$4,300,000,000 / 1100 oz = 3 909 090.91 ouncesPaulson’s 3.9 million ounces million ounces add up to 110 metric tonnes (35,273 ounces in a tonne):3.9 million ounces divided by 35,273 oz per tonne = 110 tonnesAs can be seen in the chart above, Paulson holds more gold than many nations with individual populations in the millions and economies in the hundreds of billions. His reasoning for being so bullish is that there are roughly $200 trillion investable assets (in dollars) in the world, but only $800 billion of that wealth is in gold.Whether or not the world is truly under-invested in gold is up to you to decide, but Paulson’s bet is a big one by any measure.Sources:Reserve Asset Statistics (World Gold Council)Paulson & Co 13 F Filings (SEC.Gov)Read Also:Investing Fads By Year 1996-Present (TRB)

[El Guapo 8]

What happened in 80's when everyone said buy Junk bonds?What happened in the late 90's when every said buy Tech?What happened in the mid 2000's when everyone became a real estate investor overnight?Just Sayin.

[hblask 1]

What happened in 80's when everyone said buy Junk bonds?What happened in the late 90's when every said buy Tech?What happened in the mid 2000's when everyone became a real estate investor overnight?Just Sayin.

Yeah, I'm on the fence on this one. It seems that too many people are saying "gold is the way to go" right now. I saw a video interview with Jim Rogers this last weekend. This is a guy who is the classic value investor. He says he's not buying gold right now, for this very reason, but he's also not selling either. He expects it to go way up sometime in the next decade -- which is his investment time frame. Anything shorter than that he doesn't care about.But the thing he says to buy now is commodities. He thinks farmers will get rich in the next decade. I believe he thinks African farmland is the way to go. Of course, you have to be a farmer in Africa then, but hey, small price to pay, right?I'm sure he's found some way to profit from this, but it's probably not practical for us normal people.In the end, though, Obama and the Dems are showing no signs of fiscal responsibility. In fact, it appears they are trying to spend as much as possible before their inevitable election defeat. As long as this continues, gold will not be a terrible investment. The only thing that could cause gold to drop back is for Congress to act responsibly. How much are you willing to be on that proposition?

[El Guapo 8]

Yeah, I'm on the fence on this one. It seems that too many people are saying "gold is the way to go" right now. I saw a video interview with Jim Rogers this last weekend. This is a guy who is the classic value investor. He says he's not buying gold right now, for this very reason, but he's also not selling either. He expects it to go way up sometime in the next decade -- which is his investment time frame. Anything shorter than that he doesn't care about.But the thing he says to buy now is commodities. He thinks farmers will get rich in the next decade. I believe he thinks African farmland is the way to go. Of course, you have to be a farmer in Africa then, but hey, small price to pay, right?I'm sure he's found some way to profit from this, but it's probably not practical for us normal people.In the end, though, Obama and the Dems are showing no signs of fiscal responsibility. In fact, it appears they are trying to spend as much as possible before their inevitable election defeat. As long as this continues, gold will not be a terrible investment. The only thing that could cause gold to drop back is for Congress to act responsibly. How much are you willing to be on that proposition?

Don't get me wrong, I don't think it's a bad investment. I am just tired of people asking why half of their portfolio is not in gold, as opposed to the 2-5% that is there now.I think that guy with the 15% in gold is ballsy and if he can move quickly can make a lot. The problem with him is, he is holding such a large position it will be hard for him to find enough buyers if it turns sour.

[JubilantLankyLad 1,957]

Yeah, I'm on the fence on this one. It seems that too many people are saying "gold is the way to go" right now. I saw a video interview with Jim Rogers this last weekend. This is a guy who is the classic value investor. He says he's not buying gold right now, for this very reason, but he's also not selling either. He expects it to go way up sometime in the next decade -- which is his investment time frame. Anything shorter than that he doesn't care about.But the thing he says to buy now is commodities. He thinks farmers will get rich in the next decade. I believe he thinks African farmland is the way to go. Of course, you have to be a farmer in Africa then, but hey, small price to pay, right?I'm sure he's found some way to profit from this, but it's probably not practical for us normal people.In the end, though, Obama and the Dems are showing no signs of fiscal responsibility. In fact, it appears they are trying to spend as much as possible before their inevitable election defeat. As long as this continues, gold will not be a terrible investment. The only thing that could cause gold to drop back is for Congress to act responsibly. How much are you willing to be on that proposition?

i think that video is more than a year old.

[hblask 1]

i think that video is more than a year old.

No, the one I saw was new, but yeah I'd seen him saying the same thing a year ago. That's why he's very very rich. He figures out long term trends and sticks with them through thick and thin.

[aucu 3]

Yeah, I'm on the fence on this one. It seems that too many people are saying "gold is the way to go" right now. I saw a video interview with Jim Rogers this last weekend. This is a guy who is the classic value investor. He says he's not buying gold right now, for this very reason, but he's also not selling either. He expects it to go way up sometime in the next decade -- which is his investment time frame. Anything shorter than that he doesn't care about.But the thing he says to buy now is commodities. He thinks farmers will get rich in the next decade. I believe he thinks African farmland is the way to go. Of course, you have to be a farmer in Africa then, but hey, small price to pay, right?I'm sure he's found some way to profit from this, but it's probably not practical for us normal people.In the end, though, Obama and the Dems are showing no signs of fiscal responsibility. In fact, it appears they are trying to spend as much as possible before their inevitable election defeat. As long as this continues, gold will not be a terrible investment. The only thing that could cause gold to drop back is for Congress to act responsibly. How much are you willing to be on that proposition?

This is what you have to watch for but I don't think we are there yet. People were talking about the housing bubble for at least 3-5 years or more before it popped, the dot com bubble lasted a good while too. I remember $260 gold and all the main stream press was negative at that time but there was no way it should have been that low or could stay that low because more than 60% of the mines were losing money. Now at $1200 gold we are on the third up leg in three years, there will be a pull back at some point and there will be flat out bad years too, there are signs that this is a fundamental shift, but if we see more signs of a mania it's time to cash out..Personally I'm 100% in one Gold mining stock, except for our two houses, cars and emergency cash. Can't sell because I'm an insider and our deal isn't done yet, but it feels so good.

[aucu 3]

Gold down about $100 to $1115 over the last few days.Mostly because the US$ is up some, and a pull back was due.

[El Guapo 8]

Gold down about $100 to $1115 over the last few days.Mostly because the US$ is up some, and a pull back was due.

I pulled a lot of people out in the last couple weeks.

[Jeepster80125 0]

I pulled a lot of people out in the last couple weeks.

[aucu 3]

$1074 today,Still safely over a thousand.

[wildspoke 2]

Is the strength of the us dollar and the lag of European recovery a cause for a decline in gold?

[aucu 3]

Is the strength of the us dollar and the lag of European recovery a cause for a decline in gold?

No exactly, It's more the Greek financial crisis which is hanging over the Euro like the sword of Damocles. So the knee jerk reaction for many is to sell Euros and buy the US$ but there are no lack of fiscal problems on this side of the pond undermining the buck, which leaves us with gold.