Would you invest in precious metals? Specifically gold?

1. 61

   lmarsh1203posted 12 years ago

   Would you invest in precious metals? Specifically gold?
   
   With the increase in inflation and decreasing value of the dollar, would you invest in precious metals?

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2. 60

   glockrposted 12 years ago

   Gold is too high right now. I think real estate is a much better investment. You get immediate cash flow, good tax benefits, and the potential for appreciation is pretty good.

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3. 84

   arksysposted 12 years ago

   i think the value of gold has almost doubled in the past 2 years ... it sure is a good long-term investment, but i'm not sure if now is the right time to purchase... keep track of the market trends and invest accordingly.

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4. 68

   ShootersCenterposted 12 years ago

   Really to make money in gold you should have invested when the economy took the down trend. It's still a solid buy, if you're looking to protect your dollar. Silver is still a good investment because it didn't escalate like other precious metals so it should adjust soon. Also, with silver there are no new mines, it's used in components for all your electronics so my guess would be that it'll adjust sooner rather than later. Glockr also hit the nail on the head about real estate it's quickly becoming a great investment again.

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5. 0

   Old Empresarioposted 12 years ago

   Yes, but only when the price of gold is low. People sell their gold and the value drops whenever the economy starts to recover. Vast amounts of gold are being held in reserve and if released, would drastically reduce the value of gold. But gold will always be worth more than the US Federal Reserve Note.

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6. 67

   LandmarkWealthposted 12 years ago

   The price of Gold and all commodities will likely continue to rise as long as central bankers around the world remain accomidating in monetary policy. My guess is that happens for several more years.  Interestingly, as they print more currency, all central banks are continuing to acquire gold in larger and larger numbers.  As a personal investor, their should always be a commodity exposure in your investments simply due to it's negative correlation with other asset classes.  But that exposure should likely be minimal.  3-5% based on volatility.  Additionaly, stay away from buying physical gold.  The storage costs are too high.  You buy at retail and they buy it back at wholesale prices.  It is very illiquid for the average investor dealing in smaller quantities.  You are far better off with an ETF like GLD.   Also stay away from Gold funds that invest in Gold stocks.  You will not necessarily get an investment with a low correlation to other assets.   Although overall, I would suggest a more broad based approach to commodities.

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      john000posted 9 years agoin reply to this

      These answers are all good if you believe the economy has turned and will continue to grow for some time. If biflation occurs (higher staple costs/lower discretionary purchasing), you could get a lot more gold for your $ if you wait. 10/8/2014

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   Jeff Haydenposted 9 years ago

   Yes, definitely i would like to invest in gold. it is a good options for investment.

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8. 58

   Gold Buyer MIposted 9 years ago

   Considering the fact that the cost of precious metals is limited and demand continually grows, the price will continue to grow.

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