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-The fundamentals are still there to increase the price. Is Bernanke going to let up on the printing presses? Of course not.
If gold gets down to 1,100-1,200 or lower, and people start panicking, thats the time to buy. Weren't there gold vending machines at the top? If they start taking those away, and gold buyers close up shop, it's time to buy.
After an asset falls there is far less downside risk then when folks typically buy them after they go up.
I bought gld today.
Let me tell you anyone here would have jumped at the chance to catch that falling knife back in 2008 after it fell 30-35%.
Who cares if it fell another 10 % or so and you rode it down a bit. The 130% rise back more than made up for it.
I would sooner buy that falling knife any day then try to figure out where the bottom is or if the bounce up is a suckers rally or the real thing.
It is more about letting some risk come out then it is staying away because it is a falling knife.
Fourtunes have been made on falling knife asset classes.
I think this is really dumb
You might think that gold has bottomed but what you are doing, speculating is not something that most investors should do.
Gold can be used as a hedge or a diversification tool but trying to make money off of gold appreciation is foolish.
Since 1980 the return on gold has been less than inflation. It pays no dividend the only ones making money are the pawn shops or dealers that charge a spread on the sale or purchase of gold.
Gold is a bad investment and trying to time the price swings will leave you off much much poorer.
You know what they say about a fool and his money...
The loudest statement I can think of has been made by the University of Texas Endowment Fund who bought 1 Billion dollars in gold in 2011.
Now they are campaigning to get the gold delivered and kept in Texas. As if it made a whole lot of difference where it was.
And my thinking is, if the educational system elite believe in the value of gold all that much, then the value of gold will probably fall and stay down for a very long time.
You might think that gold has bottomed but what you are doing, speculating is not something that most investors should do.
Gold can be used as a hedge or a diversification tool but trying to make money off of gold appreciation is foolish.
Since 1980 the return on gold has been less than inflation. It pays no dividend the only ones making money are the pawn shops or dealers that charge a spread on the sale or purchase of gold.
Gold is a bad investment and trying to time the price swings will leave you off much much poorer.
You know what they say about a fool and his money...
Hahaha - you have no idea who you are talking to and clearly haven't read any of mathjak's posts. Also, mathjak is not most investors. If I had to guess why mathjak bought gold today, it was because his PP had reached a rebalancing band. I wouldn't call someone w/a defensive 7-figure portfolio which has shown 9-10% returns for 30 years a speculator. Maybe he'll come back and enlighten you, further.
One of the biggest scams and myths ever perpetrated, "gold will never be worth zero".
The same thing can be said of any tangible property. The saying about gold was created to get people to invest in gold and somehow think they had something no other investment could offer. So the typical comparison is to the dollar. Of course they compare it to the dollar since the dollar is only a currency representing a value and that value is at the whim of those controlling it.
Now, explain to me how any tangible property can be worth zero. It is impossible. It might not be worth much but never zero. In fact, there are some things that can be worth far more than gold, and easily so.
Let there be a true meltdown of social, government and economic systems and see how fast gold is not worth zero but close to it. The people who make money selling gold have been very successful getting others to believe that if things get so bad that the US dollar is worthless, that people will actually be concerned about the value of gold or see gold as anything more than some yellow colored metal.
When people have nothing to eat, a pound of gold will buy a loaf of bread but not much more. That is the fallacy of the myth. Throughout history, the same history the gold sellers so often use in their advertisements, there have been examples of gold being worth less than water, food or even something intangible such as freedom or something as simple as right of passage.
So back to this dollar vs gold thing. Has any government ever made the private ownership of precious materials illegal? The answer is yes. Has the US government ever restricted the private ownership of certain items? yes.
What would happen to gold if the US government decided to make private ownership of it illegal? Oh that can't happen right? Keep believing that.
Take this one last example then, when you are hungry and I have food which you do not, what will be worth more, my food or your gold? If you think it is your gold, welcome to the world of the manipulated. You will use your gold to pay others to grow food for you? Suddenly your gold is worth less than labor, less than seed, less than almost anything.
Bunch of inaccuracies here, let me see if I can cover them:
"Gold will never be worth nothing" vs "x"
Example of X: Enron Stock. (Bunch of other's which can be pointed to.)
Quote:
Let there be a true meltdown of social, government and economic systems and see how fast gold is not worth zero but close to it.
Show me an example in history (Which says the opposite)
Quote:
When people have nothing to eat, a pound of gold will buy a loaf of bread but not much more.
Show me ONE example of this in history. Rather, they exchange the gold down the street for silver dimes, or something and come back and buy your bread. TOTALLY FALSE!
Quote:
What would happen to gold if the US government decided to make private ownership of it illegal? Oh that can't happen right? Keep believing that.
LAST TIME the US government did someone (Forget who) held up some gold IN CONGRESS while testifying and dared anyone to arrest him. No one did.
SHOW ME a list of people arrested after it was made illegal in (What was it? 1933)
Going to be a SHORT list! (No one)
You keep telling people it'll be a pound of gold for your bread, I'll sell it MUCH cheaper while yoru bread goes stale.
Thus goes the free market!
I bought silver today for the first time since it was $12.88/Oz, and I hope it keeps on falling!
You might think that gold has bottomed but what you are doing, speculating is not something that most investors should do.
Gold can be used as a hedge or a diversification tool but trying to make money off of gold appreciation is foolish.
Since 1980 the return on gold has been less than inflation. It pays no dividend the only ones making money are the pawn shops or dealers that charge a spread on the sale or purchase of gold.
Gold is a bad investment and trying to time the price swings will leave you off much much poorer.
You know what they say about a fool and his money...
the only thing dumb is buying when things are at highs. after falling 35% and with worst case plunges good for about 50% the downside has far less risk to it.
it is a perfect time to rebalance .
good luck with your cash instruments, i am sure they grew you lots of money.
if you are going to buy only one asset class then yes that is a speculation but there is a ton of money made speculating , especially when there is panic selling.
i am not a speculator myself as my gold is part of a master strategy but even at these levels odds are on the fact yesterday was over done.
but what i said is true about every asset class not just gold. no one knows when the out of favor investment of the year swings around because of events and is now the best investment to own again.
that is why good diversification owns them all and rebalances and buys more of the losers and sells some of the winners .
but since you know as little about investing and retirement planning as the man in the moon you assume wrong.
by the way with your rate of accuracy of being correct i would not challenge anything anyone says as odds are it is you thats wrong most of the time.
Last edited by mathjak107; 04-16-2013 at 01:46 AM..
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