Time to Buy Gold?

puk999

I certainly like the idea of having some physical gold/silver bullion for a SHTF scenario. I don't expect it to happen, but it might be possible to buy a loaf of bread for a few ounces of silver. It might be what's needed to get through the rough patch.

PsychoBob

Gold looks really expensive to me. As an example to buy a 1oz Brittania at Bullion by Post is £782. To sell one at the same place is £720. I know that prices go up & down over time etc, but that is a massive immediate loss. Its got to go up some to make a profit.

Satoshi

puk999 wrote: »

I certainly like the idea of having some physical gold/silver bullion for a SHTF scenario. I don't expect it to happen, but it might be possible to buy a loaf of bread for a few ounces of silver. It might be what's needed to get through the rough patch.

I do not think there will be shtf situation, but I do think fiat currencies will go down in value so bullion will be a safe thing to hold.

Wilkins

Satoshi wrote: »

I do not think there will be shtf situation, but I do think fiat currencies will go down in value so bullion will be a safe thing to hold.

Did you think that a year ago?

grey_gym_sock

Satoshi wrote: »

bullion kept secret out of the banking system = risk free return

what planet are you living on?

6022tivo

It is pretty simple economics really.

World heads towards a recession and share prices start to plummet, everyone buys gold (7 years ago)
World coming out of a recession, and companies gaining value, people liquidate the gold to invest in shares etc...
Gold starts to plummet.

And on and on, if you are still holding onto your gold, better get rid quick.

It makes Browns decision to sell our stocks of gold as the economy was diving all the more stupid.

Just look at historic gold prices vs global recessions

lvader

it's not that simple, recessions don't inherently make gold more attrictive, loose money does. it's the threat of no more QE that is causing gold prices to fall. The thing is QE isn't being withdrawn so the easy money is still there, it just needs a pickup in the economy to get it flowing. If US inflation picks up so will gold prices.

planteria

agreed, and i expect inflation to kick in.

S&W Gold fund remains in my ISA and i am fairly happy to keep it there for the coming months.

Satoshi

So is it now confirmed silver is mre rare than gold in available stockpiles?

lvader

Satoshi wrote: »

So is it now confirmed silver is mre rare than gold in available stockpiles?

Available stockpiles are kind of irrelevant when new supply outstrips demand.