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

nrsql

tradetime wrote: »

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.

Think our ex-chancellor proved that isn't true.

Problem with gold is that there a lot of reserves (still) around and those can be dumped on the market at any time and drive the price down (and vice-versa).
When EU countries had to bring down their debt to comply with EU rules there was a lot dumped. Now there will be the same but that will be offset by buying by other countries, inflation and currency weaknesses.
Who knows what will have the strongest effect?

gozomark

nrsql wrote: »

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

so you think gold might go up alot or it might go down alot, and it might do both.......

6022tivo

Am I wrong to think, when we turn the corner, people will then want to offload the gold, and the prices will drop, probably close to the 500 mark????

I think the gold boat was missed a while back to be honest.

gozomark

6022tivo wrote: »

Am I wrong to think, when we turn the corner, people will then want to offload the gold, and the prices will drop, probably close to the 500 mark????

I think the gold boat was missed a while back to be honest.

my thoughts exactly

sabretoothtigger

Gold doesnt give a dividend or investment return and its not even that usefull. Its main worth is there is not that much of it and its very hard to get more so the underlying value doesnt change.
If stocks recover which do give returns then gold will fall definitely so you have to be sure things will get much worse from here

How about a fund that invests in all commoditys equally not just gold. Ive heard that in general the price of commoditys is at a twenty year low, so you would be buying alot of value and industry will always need some of these ones mentioned

http://seekingalpha.com/article/49260-crb-commodity-index-gets-etf-tracking

The full list of commodities included in the portfolio are Corn, Wheat, Soybeans, Live Cattle, Lean Hogs, Gold, Silver, Copper, Cocoa, Coffee, Sugar #11, Cotton, Orange Juice, Platinum, Crude Oil, Heating Oil and Natural Gas.

The problem with this fund though is that it actually buys treasurys bonds and then future contracts so its not an actual holding. Bonds may crash and it wouldnt be much use then I'd think, so is there an actual fund of actual physical holdings not just gold

gozomark

sabretoothtigger wrote: »

Ive heard that in general the price of commoditys is at a twenty year low,

CRB is nowhere near its 20 year low, atleast not in nominal terms
http://www.mrci.com/client/crb.php
bottom chart

link gives a breakdown of whats in the index
Current Reuters CRB Components

sabretoothtigger

True going by those graphs, I heard it was closer to 200 so maybe they were referring to the old equally weighted version of crb which would be less biased to gold I presume, not sure







http://runningofthebulls.typepad.com/toros_running_of_the_bull/2008/01/crb-index-adjus.html

DiggerUK

@ RDB,
I'm not sure if sabertoothtiger or gozomark are saying this is a good time to buy or not. Could you ask them what is their answer is to your question?
Thank you.

GucciMane

Interesting fact time:

People believe that all major currencies are Fiat. However there is one that is still gold backed. The Euro. The ECB who administers the Euro is required to keep a minimum of 15% of its reserves in gold.

gozomark

DiggerUK wrote: »

@ RDB,
I'm not sure if sabertoothtiger or gozomark are saying this is a good time to buy or not. Could you ask them what is their answer is to your question?
Thank you.

given I wrote "gold is going to $ 500", and that the £ has bottomed, you know my thoughts