GOLD..a good investment?

1. 60

   qwarkposted 14 years ago

   The price of an oz. of gold is almost $1200.00's.
   Why would anyone buy gold at it's peak price?
   Would you buy a stock at the highest price it has historically reached?

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   1. 61

      Moon Goddess1854posted 14 years agoin reply to this

      The old phrase says:
      
      What goes up must come down.
      
      So our first reaction is to say that since gold is high, it must be ready to come down.  This is often a mistake because it is very hard to tell where there will be a change or counter trend.
      
      Looking at gold charts it indicates that since about 2001, Gold is running on around $400 poles.  It corrected over 200 dollars in 2008.
      
      Chances are before gold rises it may correct so I would wait for it to make new upward trend before investing
      
      The charts are only a guide.  A less risky investment will be gold stocks like NEM, ABX, GG.  These will be less risky plays.

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   2. 58

      DavidDT_TTWposted 14 years agoin reply to this

      in a bull market that is what yo do - buy at new highs...but we are in the bear market...oh pardon me - GuberMint said we are fine...

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   3. 65

      thecollecktorposted 14 years agoin reply to this

      When you invest, one has to consider the world economy, its impact on people, then look at the investments that offer the best return for what is happening now.    Gold has been a very good investment in uncertain times.   Will these uncertain times continue, probably.   Yet every investment requires demand and scarcity in order to offer profits.  Gold's demand comes from two areas, jewelry and investment.  This old article from 2008 offers insight into Gold as an investment.  http://www.articlesnatch.com/Article/Wh … ld-/993134   You will find then two thirds (2/3) of the demand is from jewelry, the balance from investors.   Manufacturing is mentioned.  Investments are up because of the belief, gold holds value.  Currently this is true if investors continue to believe this.  Any investment will go up and down.  Gold is no exception.  It will have a trading range and a low and a high over time.   Many are holding taking gold off the market.  Any change in why gold is rising can cause the price to drop fast.  Investors are fickle. They want profit.  Should another vehicle offer more profit, there will be an exodus from other their current choice.  Gold is no exception.   Gold like any investment needs to be a part of ones investment.  Should they bet the farm?   It is a decision not left up to those who promote Gold and sell it.  There is always a risk. 
      Compare it to other options.  Read more at http://hubpages.com/hub/APNX Always remember, make your own decision when investing.  There is noone who is 100% perfect except maybe Warren Buffet.

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      1. 60

         qwarkposted 14 years agoin reply to this

         I'm an old gold prospector.
         The gold I have, I'll hold.
         At $1000+ an ounce there's no way I'll buy.
         I remember when gold rose to about $800, I think in the late or middle 70's
         I had friends who made a bundle and who also lost alot when the price dropped back, suddenly, into the $300's.
         These guys on TV who tell ya they invested 10 yrs ago and it has been the best investment they've ever made...and they want you to buy now?
         They invested when gold was selling for $350 an oz.
         They did not foresee this recession, they just lucked out.
         Buy gold now? Are you nuts

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2. 64

   Mishaposted 14 years ago

   My analysis shows that most likely in December we just saw the highest gold prices for years to come. This refers to many other markets including stocks. Say hello to deflation, it is much better than government wants you to believe
   
   I could be wrong of course

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   1. 60

      qwarkposted 14 years agoin reply to this

      Misha:
      Knowing that, would you buy gold as part of your investment scheme?
      I wouldn't

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   2. 58

      DavidDT_TTWposted 14 years agoin reply to this

      "It is so good that we don't need any better"
      
      That is a typical Russian saying
      
      DavidDT AKA Mad Russian

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3. 64

   Mishaposted 14 years ago

   I am not buying it of curse. I actually opened a gold account if a safe place like a year ago, but I did not fund it yet. May be a few months or years down the road, but definitely not now

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4. 60

   qwarkposted 14 years ago

   Misha:
   Amen!
   I prospected gold in the mid 90's: Calif, Oregon, Washington..etc.
   I have about a pound of "pickers" and placer in a bottle.
   Never had it assayed.
   I'm gonna do it shortly. :-)

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5. 47

   DanPowersposted 14 years ago

   I've written a hub about investing in gold...
   
   http://hubpages.com/hub/Buying-Gold-for-Investment
   
   I don't know if it is a good investment right now. Daytime television is full of adverts about buying and selling gold, that's usually a good sell signal!

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6. 54

   probafixposted 14 years ago

   In short, is gold is a good investment? Absolutely Not!! stay away from it...

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7. 81

   earnestshubposted 14 years ago

   Just a thought ....... If gold was the same price as it was in 1979 it would be $3,400 an ounce in today's dollars!
   look at the fundamentals then, and compare with now. The gold price is very difficult to predict. It is not dependant on reality alone!

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8. 74

   cheaptrickposted 14 years ago

   The Precious metal investment thats growing fastest proportionally is Silver cause the Chinese are pushing it big time for there citizens.I bought in and value is increasing at a very steady rate,not spectacular but steady.

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9. 68

   MikeNVposted 14 years ago

   Paper currency has ZERO value.
   
   Regardless of the price per ounce, Gold will always have some value even when paper currency completely collapses.
   
   This has ALWAYS been the case.
   
   How much is your $1,200 in paper going to be worth if there is a run on banks?
   
   So the real question is this.  Do you trust that paper currency will hold it's perceived value or not.
   
   People buy gold to hedge against inflation.  It's all just risking taking, gambling.

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   1. 92

      habeeposted 14 years agoin reply to this

      I totally agree.

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10. 82

    classicalgeekposted 14 years ago

    If you want a really good investment, try vegetable seeds. They will multiply by 10 every year, and you can feed your family for a year on about $30 worth. The next year you can feed ten families if you save the seeds from the plants you harvest, and the next year 100 families. All you need is the land to grow it on.

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11. 63

    Kidgasposted 14 years ago

    If you have read any of my hubs on gold investing, you will see that I have a clear bias in favor of gold.  Can I tell you if it is a good investment, now?  Of course not!  I have no idea whether the price will be $500 or $5000 or anywhere in between over the next decade.  But I still hold over 30% of my retirement accounts in the stock of gold and silver miners.
    
    How can I do this and sleep at night?  By owning puts and hedging the value of those stocks.  I know that I can only lose so much if I am wrong.  This could be done with other stocks as well.  Some would have you believe that options are complicated and risky.  I prefer educating myself.

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12. 72

    wyanjenposted 14 years ago

    Gold is a bad investment.
    Especially if the gold has diamonds in it.
    
    I held on to my gold investment for 14 years before I sold it at a pawn shop. Turns out that wedding ring was worth a solid $25.00.

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    1. 63

       Kidgasposted 14 years agoin reply to this

       I bet you were lucky that you even got to keep that much.

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       1. 72

          wyanjenposted 14 years agoin reply to this

          
          I went to three different pawn shops with it. I thought about putting up for sale personally, but I would have felt bad about ripping off some newly engaged kids. So, I took the money and ran.
          

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13. 81

    earnestshubposted 14 years ago

    I collected a pickle bottle full of gold over a period of time panning. The thing is, nuggets are worth much more than their weight value.
    The ugly ones Dad made into a pair of wedding rings for my sister and her man.

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    1. 63

       Kidgasposted 14 years agoin reply to this

       Panning sounds like fun.

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14. 61

    advocoposted 14 years ago

    There are obvious attractions to investing in gold right now given the uncertainties hanging over the entire global financial system (this so called recovery is a mirage).  But, as some have already commented, is 11-1200 a bit of a rich price or even a bubble price?  If you like gold what's a good entry price?
    
    I published an article recently comparing the position of fabled economist Nouriel Roubini (thinks gold's a bubble) and hedge fund billionaire John Paulson (has started buying it).  They both predicted the economic crisis so are worth listening to but can't both be right on this one. 
    
    http://english.alrroya.com/node/29987
    
    For anyone that doesn't want to read the article, I came down on the Paulson side but think there will be an opportunity to get in at some point this year at below a $1000.

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15. 54

    probafixposted 14 years ago

    Gold is best investment because of its fluctuation. gold prices fluctuate with its supply and demand.

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16. 60

    DCnewsposted 14 years ago

    It may go up, but Warren Buffett isn't buying right now.

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17. 59

    traderxposted 14 years ago

    Gold can be a good investment, but like all investments, there is always downside risk.  Gold is a bit different than other stuff, as you could buy here, investors think it has topped and then if you do not sell you might be underwater for 10,20, or even 30 or more years.  This is what happened near 1980, when gold peaked and anyone holding and hoping was hoping for 30 years.  Silver investors are still hoping.
    
    As long as you treat it as an investment with a cut off point where you would get out, you are fine.  If inflation takes off, gold is virtually the only game in town that benefits that is easily accessible to most investors.

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18. 63

    Daniel Carterposted 14 years ago

    Buying gold now might be a little like buying real estate just before the end of the boom market in early 2008. A lot of people are now upside down in their mortgages, if they haven't already foreclosed. So if the gold market does correct anytime soon, your initial investment is going to be worth only pennies on the dollars you invested.
    
    It's probably a very smart investment for all the reasons cited, but timing, at this point, will make the difference about investment value.

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19. 54

    probafixposted 14 years ago

    The stand you took here is worth a praise.

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