Buying in to Gold

amosworks

Computer says no lol

vishpatel

Chrismaths wrote:

Actually I've been a gold bull since 2002 - It's made my clients very handsome returns. But I'm taking some money off the table currently, as it seems everyone and his dog wants gold at the moment. When the papers all start writing articles on gold, and the man in the street wants to buy gold, it's time to start thinking about risk - and if this is the beginning of the end of the bull run.

I'm not convinced either way yet - so it's only prudent to take some profits and a watching brief, methinks.

Man in the street wants to buy gold? Its hardly at the stage is it? If I was pop outside now & ask ten people what they thought about gold, i doubt even one would say I would like to buy it (or already have) as an investment..... and I work in Canary Wharf! 9 out of 10 people would still go on about property.

It is getting attention in the media, but they would be blind not to notice its current run.

free4440273

...and they would be wrong about property also!

Chrismaths

Fair point.

By 'man in the street' I meant non-investment professionals/experienced investors. Very few actual 'men in the street' bought tech shares - just unsophisticated investors. Just industry shorthand.

vishpatel

Another interesting read:
http://www.safehaven.com/article-5131.htm

Personally I feel we are still in the early stages of a bull market for gold, and commidities in general.

There are fundamental reasons for its rise - and these look to remain in place definitely for the short to mid term.

free4440273

as i said before, gold will probably rise all the way past the $850 mark. bond investors seem likely to be one of the major proponents for its rise as inflation fears are compounded

cloud_dog

The below article makes for interesting reading:

http://www.jonesreport.com/articles/090506_oil_bourse.html

I think I am in the camp that beleives that there will be an 'event' (put it that way) at an economic level. Just one of the problems we face is that as the US$ devalues the price of goods / commodities will rise, even ignoring demand, this rise in essential $ denominated goods/commodities will have an adverse affect on doing business and therefore company profits and therefore markets are likely to (how shall we say) 'correct'.

Have to admit to most of my investments being in O&G and precious/base metal explorers/producers but, even I am considering what I should be doing, i.e. go with the flow (for the moment) or start switching into cash ready to jump back in again when the 'correction' occurs. Part of the problem, for me, is as the article states the timimng of the 'correction (as always) is unknown.

cloud_dog

Deemy

Well I wish the stocks would darn well hurry up and correct !

Been mostly sat on the side lines for some 5 to 6 months now ! :rolleyes:

Friday's action bodes well !

As i suspect, all markets will likely decline in tandem, including commondities....

moneytroll

Scary prospects...
If markets do fall in tandem, how is diversification - the thing that everybody goes on about - supposed to help one in these circumstances then?

[Deleted User]

This is a excellent thread and has given me some good ideas to branch into after all never have all your eggs in one basket.

Looking at the gold price it seems more expensive now then its ever been so i guess those that bought at the original thread made a lot of money. Not looking so good now since its currently so expensive but will be getting some gold bars if it ever gets down to 250ish again