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

chopperharris

Just wait till the 22nd and the secrets out about a gold tax.

gozomark

22nd of when ?

DiggerUK

@ RDB,
Could you ask gozomark if there is a typo in their post.
I'm sure it should read 500GBP, not "$500"

The reason I ask is that the costs of mining, refining and marketing for gold are estimated at $700 per ounce.

Many mining operations would cease to produce at $500 per ounce. Short supply would then be a boost to POG prices in my opinion.
Thank you.

sabretoothtigger

Good to buy? no
5% of your wealth is the normal gold investment and I was suggesting you diversify

costs of mining, refining and marketing for gold are estimated at $700 per ounce

bs
base value of gold is one or two hundred afaik

Reaper

DiggerUK wrote: »

@ RDB,
Could you ask gozomark...

Have you two had a tiff? Not talking to each other directly? Do you need to :kisses3: and make up?

nrsql

gozomark wrote: »

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

I suspect it will go down then go up. Think it's overpriced at the moment but there will be upward pressure in the not too distant future.
Depends whether or not it comes down before it goes up.

Anyway I'm not buying at current prices but probably will if it nears $700.

DiggerUK

@ RDB,
sabretoothtigger gives wrong figures for production costs of gold.
Here are recently published figures from Avnel Gold Mining, an operation in Mali.
I don't think Mali has any minimum wage laws, but I haven't checked.
At $100, $200 or $500 an ounce the unemployment figures in Mali would rise I think.
http://finance.yahoo.com/news/Avnel-Gold-Mining-Limited-AVK-cnw-14800210.html

Take care and DYOR.

rl290

I agree with Wombat that there is scope for future increases, should inflation/uncertainty resurface in a few years. However, I sold my gold a little while ago, and will not be buying back in for a while - gold would have to approach $750 before I even considered it. Even then, I may wait for further weakness.

There is an interesting article on moneyweek's website today re:gold not being a hedge against inflation (rather, it is a hedge against governments). This is certainly partially true, and is worth keeping in mind.

R

sabretoothtigger

Marc Faber discusses rising 30yr treasury yields despite the fed buying them, this is probably most relevant to gold price as treasurys are supposed to be the safest long term store of value, if gold were to replace that then it would see alot of demand

http://www.youtube.com/watch?v=tKgynzmyFYs

jon3001

sabretoothtigger wrote: »

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

The ETFs I've seen such as those from ETF Securities use US T-Bills as collateral for buying futures contacts on the margin and earn a yield in the process. This is US Government debt of very short maturity (4, 13, 26 or 52 weeks) and so is considered very secure and extremely low risk.

Commodity futures have been excellect long-term investments. Most of the return from these comes from the roll-yield (basically a discount in pricing of long-term contacts to current spot price) rather than appreciation of spot prices. You can't get access to this return by just physically holding the commodity.