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I'll also add that you need to think like a hedge fund manager. There are "experts" (read: no-name traders and hedge funds) on CNBC claiming gold could go to $5000. Statements like that tend to get novice investors excited (and greedy). Pundits like Glenn Beck are endorsing their "friends" at Goldline and driving small investors who aren't as nimble or knowledgeable into the gold market. Big money were the first ones buying gold and as soon as the hysteria hits a climax they will be the first ones getting out, leaving the small investor holding the bag when it plummets.
IMO, the higher gold and silver go, the riskier they get. Like the guy above said, you make money when you buy low and sell high. You will be buying gold at near record highs. Gold discussion has hit the mainstream. When that happens, it is usually a good indication that the party will not last much longer.
Do the opposite and put your money into a large cap stock with a good dividend, like Coca-Cola or Johnson & Johnson. Research secular stocks that are not affected by downturns. These stocks are boring when times are good, but when the going gets rough they are the stability that investors flock toward. Or look for a large cap that has been beaten down even though the fundamentals are sound. Ford Motor Company, which is a cyclical stock, has outstanding leadership and its turnaround continues to accelerate in the middle of a deep recession. It's a bargain at its current price.
If you feel strongly about having gold, keep your total investment below 10%. Plenty of people got in late in 1980 and lost significant portion of their investment after gold crashed. Only invest what you can afford to lose.
Yep, very much like "flipping houses" in 2005 or buying pets.com in 1999. Smarter people have accumulated 400% gains over a few year speculating that gold will go up. It's kind of funny that the higher the price goes, the more people decide to buy. But really, it's kind of late in the game.
I'll also add that you need to think like a hedge fund manager. There are "experts" (read: no-name traders and hedge funds) on CNBC claiming gold could go to $5000. Statements like that tend to get novice investors excited (and greedy). Pundits like Glenn Beck are endorsing their "friends" at Goldline and driving small investors who aren't as nimble or knowledgeable into the gold market. Big money were the first ones buying gold and as soon as the hysteria hits a climax they will be the first ones getting out, leaving the small investor holding the bag when it plummets.
Yeah, like a pump and dump. They are trying to squeeze an extra 20% price gain, by getting everyone and their grandma to buy a little. They bought at $400/oz, so so what if the bubble burst at $2000/oz and they sell at $1900/oz. It won't work out so well for those who bought at $2000/oz though.
This is why Gold is going to 2000 in the near term.
Germany is the last bastion of the Euro zone. If its GDP is not growing as fast, then the EU zone is in a lot more serious trouble than we all thought it was.
Generally with investing, you want to buy low and sell high. Yes, that is very cliche, but the basic principle still applies. Gold is at all time highs right now, so your risk is going to be higher getting into gold right now.
This is why Gold is going to 2000 in the near term.
Germany is the last bastion of the Euro zone. If its GDP is not growing as fast, then the EU zone is in a lot more serious trouble than we all thought it was.
I just saw Louise Yamada on CNBC, an extremely well-respected, credible and accurate technical analyst. She called the worldwide crash in early 2008 - said it would be global. Scared everyone on FastMoney that night. She was the reason I liquidated all equities the next day. Therefore - I love Louise.
5,200 by 2018, 2000 near term. She believes there is consolidation that needs to be done now, but next leg up will propel over 2,000. Considers gold in a structural bull market to over 5,200 which will coincide with the bottom in a bear market in equities sometime around 2020. At present she sees nothing to impede this rise in gold as people lose confidence in fiat currencies.
Search Louise Yamada on CNBC videos. She is one smart lady and is on the money 95% of the time. The video where she said the decline would be global and which influenced me is not among them, but I will never forget it.
Last edited by Ariadne22; 08-16-2011 at 01:16 PM..
Well, I just saw Louise Yamada on CNBC, an extremely well-respected, credible and accurate technical analyst. She called the worldwide crash in 2008 - said it would global. Scared everyone on FastMoney that night. She was the reason I liquidated all equities the next day. Therefore - I love Louise.
5,200 by 2018, 2000 near term. She believes there is consolidation that needs to be done now, but next leg up will propel over 2,000. Considers gold in a a structural bull market to over 5,200 which will coincide with the bottom in a bear market in equities. At present she sees nothing to impede this rise in gold as people lose confidence in fiat currencies.
Search Louise Yamada on CNBC videos. She is on the money 90% of the time. The video where she said the decline would be global and which influenced me, sadly, is not among them, but I will never forget it.
I am very glad smarter people agree with my bullishness on gold. Feel better I didn't let my mom down
I charted gold from 2007 to 2011. Its primary trend is filled with intermediate trends of the same pattern. It's a complete gold bull market with a series of increasing palisades and the trend is here to stay for a while. There's immense evidence around with a stagnating economy. With continuing stock sell-offs and the bond market downgrades, what else could be the safe haven for investors other than precious metals??
Thanks all. People around the world have been trying to buy gold as American do. I think that I just play a shorterm gamble, redeem 1/3 of mutual fund to get golds. Probably, I will keep them until end of this year and sell back. I expect a little profit better than nothing. The value of USD is getting smaller due to inflation, some co workers told me to save in CAD instead of USD. I'm scared of losing family's saving to trade stocks since I am not really good with it.
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