Gold is now a good time to buy in the dip?

RDB

Im considering putting some more cash into physical Gold to protect against the pound devaluing even more.

Is now a good time in the dip?

Interesting to see peoples opinions.

gozomark

1. £ is the strongest major currency in the world this year (fact) , and has bottomed (opinion).
2. equity markets have bottomed
3. 1. gold is going to $ 500

sabretoothtigger

Gold isnt the only way to hedge weakness in the pound, its probably one of the most risky especially as its highly priced anyway

Buy on scale so that you can take more advantage of any further price drops.
I think Marc Faber said he would buy at 800, if you believe in something then a price fall is always nice to invest in if you have the cash so setup a plan where you retain the ability to keep buying for the duration of its fall

tradetime

That rather depends a lot on your personal circumstances, disposable income etc, the answer is likely different for different people. Gold is not something you can dump some money in for 6 - 12 months and pull it out knowing it will buy the same as before you put it in. Gold imho does represent a store of value (a hard currency that cannot be printed) over the long term, however in the short to intermediate term it is an extremely volatile commodity.
At this level, my personal opinion is that it is expensive here relative to other commodities, but again it depends on your personal circumstances.

nrsql

>>Gold is not something you can dump some money in for 6 - 12 months and pull it out knowing it will buy the same as before you put it in.

Is there something that you know will buy the same over that period?

nrsql

gozomark wrote: »

1. £ is the strongest major currency in the world this year (fact) , and has bottomed (opinion).
2. equity markets have bottomed
3. 1. gold is going to $ 500

Lol.
You might think that the £ has bounced rather than been strong - it happens with most things that go through a bad period and doesn't necessarily indicate recovery. What happens if you try that for a year?

As to the other statements - I hope it goes well for you.

3. I would say $700 or $1500 - not sure whiich, possibly both.

wombat42_2

Gold is schizophrenic in being both a commodity and a pseudo-currency. It shares the fact of virtually all commodities that the amount available to be mined is decreasing every year. We passed peak gold years ago. However existing gold can be reused but only so much of that is possible.

So, like most commodities, there is likely to be a long term upward trend in price.

Also the dollar is expected to fall long term which should help gold.

Also any future inflation should boost gold.

Linton

wombat42 wrote: »

Gold is schizophrenic in being both a commodity and a pseudo-currency. It shares the fact of virtually all commodities that the amount available to be mined is decreasing every year. We passed peak gold years ago. However existing gold can be reused but only so much of that is possible.

So, like most commodities, there is likely to be a long term upward trend in price.

Also the dollar is expected to fall long term which should help gold.

Also any future inflation should boost gold.

Each of these statements may (arguably) be true. However in between now and these effects having significant impact, whenever that is, anything could happen, and probably will at some stage. So IMHO gold and other commodities may well be a valuable part of a broad portfolio they should not be seen as a safe shelter from currency movements.

tradetime

nrsql wrote: »

>>Gold is not something you can dump some money in for 6 - 12 months and pull it out knowing it will buy the same as before you put it in.

Is there something that you know will buy the same over that period?

No, sorry there are no certainties to fulfill that aim, however people often come on here with the mistaken impression that gold is some sort of "magic" medium you put your money in and you can't lose, my point was that gold like any other commodity goes up and down in price. Whilst I do tend to believe that if you had to pick one single asset to hold your money in over the long haul, and preserve it's purchasing power, that likely would be gold, in the short to intermediate term you could just as easily lose money.

Reaper

Remember at G20 the IMF was given permission to sell 400 tonnes of gold to finance their plans which will hold the price down. If I remember right that's even more than the UK sold during Brown's disasterous sell off of the UK's reserves. I bet he wishes he hadn't.

DiggerUK

@ RDB,
Luckily I made an order on Monday. As we are down from the Feb 20 high it is a fair dip.
Pound keeps kissing 1.50 that generally helps.
Seems the only unknown is POG.
Ask the same question in 5 years and I will have a perfect answer !

Hi to the Gold Squirrels, nothing against the bugs I just don't want them moving in next door.

DiggerUK