investment in gold

DiggerUK

bendix wrote: »

Hang on. Aren't you the guy who says gold is a no-risk investment?

Yes, it is a no risk asset.
There is a time to buy, and a time to wait to buy.
I say now is a time to wait a while. Judgement call, that's all.

mattih5

If you really want to dip your toes in, I'd advise going for a fund which invests in Gold/Previous Metal mining companies.

I invest in the Blackrock Gold & General fund (for 2 years) which in turn invests in Gold mining companies along with other metals. Although the fund hasn't enjoyed the explosive growth Gold has, it has risen substantially over the last 3 months.

A lot of analysts and speculators suggest Gold will continue to rise well into next year as the Dollar continues its downward spiral; I myself am bit sceptical of this, simply because of the amount it has risen i.e. a bubble.

I see investing in Gold mining stocks a `safer` option than investing directly in Gold as the investment is in various companies and not the commodity itself.

I would be wary of investing in Gold at the moment, I've been taking profit from the fund in order to reduce the risk; currently the fund is showing a profit of 41% in my portfolio and that's with several bouts of profit being taken.

Always remember, only invest what you can afford to loose and if you need that £1,000 then don't bother. As Lokolo has said "Quite risky".

mattih5

ses6jwg wrote: »

A bit of common sense is needed here...Putting all your money into gold would be a very foolish thing to do.

Very wise words.

mr_fishbulb

DiggerUK wrote: »

Yes, it is a no risk asset.
There is a time to buy, and a time to wait to buy.
I say now is a time to wait a while. Judgement call, that's all.

Why bother waiting if there is no risk? Nothing to lose if I buy now because none of my capital will be at risk. Sweet :cool:

mattih5

I'm a strong believer in what several well know investors have said in the past.

You know when it's time to get out of a stock when the milk man recommends a stock or investment. I think this applies when adverts begin to appear on TV e.g. Cash4Gold etc and when "Red Top" tabloids begin to cover stories.

Lokolo

mattih5 wrote: »

I'm a strong believer in what several well know investors have said in the past.

You know when it's time to get out of a stock when the milk man recommends a stock or investment. I think this applies when adverts begin to appear on TV e.g. Cash4Gold etc and when "Red Top" tabloids begin to cover stories.

And the OP

bendix

DiggerUK wrote: »

Yes, it is a no risk asset.
There is a time to buy, and a time to wait to buy.
I say now is a time to wait a while. Judgement call, that's all.

Utterly ridiculous logic.

I think you use a different definition to risk than the rest of the world. You seem to suggest it means it will never be worthless. True. I can't argue with that.

But there is always a risk - at WHATEVER price you pay for it - that that price might go down.

There is also an additional risk in the way you talk about gold - currency. The price of gold is determine in dollars - when you buy gold you are also making a currency play as much as you are a commodities play.

Gold as an asset is the same as all other assets - it has to be realised at some point. And how can it be no risk when you can't provide a guarantee that the price won't have dropped when you need to realise it?

Browntrout_2

falling like a lead ballon this afternoon:rudolf:

http://www.kitco.com/charts/livegoldnewyork.html

Looking good for the Short Bullion ETF (SBUL)

bendix

Browntrout wrote: »

falling like a lead ballon this afternoon:rudolf:

http://www.kitco.com/charts/livegoldnewyork.html

Looking good for the Short Bullion ETF (SBUL)

Don't be ridiculous Browntrout. Gold is a no risk investment.

Digger says so.

mr_fishbulb

mr_fishbulb wrote: »

Why bother waiting if there is no risk? Nothing to lose if I buy now because none of my capital will be at risk. Sweet :cool:

Dropped from ~$1200 to ~$1150 (~4%) between that post and now.