Time to Buy Gold?

Satoshi

lvader wrote: »

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

try telling that to Germany who was told it would take 7yrs to get their gold back.

"Germany dont worry about it, new supply of gold is way outstripping demand and has been for thousands of year, why do you want your gold back?"

lvader

I thought you were talking about silver?

averageish

Just to point something out that I dont think has been mentioned. It does not necessarily follow that mining company stocks track the gold spot price.

In the original post it was asked "is it time to invest in gold?". This is a different question to "is it time to invest in the JPM Natural Resources fund?"

Not to mention, the JPM Natural Resources fund is comprised of many holdings, not all of which are gold or even precious metals related.

planteria

the NR fund has a lot of non-Gold holdings. none of the Top10 holdings are gold miners.

Satoshi

lvader wrote: »

I thought you were talking about silver?

Same thing, the two monetary precious metals.

chucknorris

Thrugelmir wrote: »

Buy shares directly in miners for income. Adds diversification to a portfolio.

I don't invest in individual shares and I certainly don't want to manage a whole load of individual shares in an attempt to gain some diversity. I'm happy sticking to property, pension (mainly defined benefit), shares (some funds eventually but trackers only at the moment) and something in cash. Currently my portfolio is:

14% savings
14% shares
13% pension
59% property

I'm currently moving out of cash and investing more is shares and pension with both cash and income, so at retirement I would like to have something approximating to:

8% savings
20% shares
22% pension (partially shares in a SIPP)
50% property (% possibly higher with capital gain rather than investment)

EDIT: I can only foresee one scenario when I would possibly invest in gold/PM and that would be if its price totally crashed in a boom, and even then it would just be a small punt.

sabretoothtigger

8% savings in gold would be fair In decades past how much would your gbp have been as UK defined itself partly in gold, I still argue this is not a revolutionary idea. Why say none now

I can only foresee one scenario when I would possibly invest in gold/PM and that would be if its price totally crashed in a boom

That could be the case now, depends what is booming. Is it price of debt thats boomed making gold too cheap relatively.

On price alone its hard to say but even over 1000 it does not seem gold is expensive which should be surprising but not if other costs have risen.

I think 1% at least and no more then 10 for most people but to have none and to dismiss our present exceptional circumstances, this I cannot forgive

atush

When is it a good time to buy gold?

When no one is talking about it. So now is not the time. As peopke still talk about it (even if not quite so much as before). When everyone and his brother is talking about it- avoid it like the plague.

Last time I bought it, no one else was, and I made a bomb when the credit crunch came.

jabba42

960 is my target, you need under 1000 to totally destroy the gold bugs faith. After that when you start to see numerous stories about how gold will be 600 USD an ounce thenit is time to buy.

chucknorris

sabretoothtigger wrote: »

I think 1% at least and no more then 10 for most people but to have none and to dismiss our present exceptional circumstances, this I cannot forgive

I'm not dismissing our present exceptional circumstances, in fact I am relishing it with an extra 29k saved every year in mortgage interest coming up to 5 years now and still counting.


I just don't see what gold can bring to the party for us, I want to invest more in shares and pension so I would not redirect future investment from them, and we need to hold some cash as we own a fair amount of property which requires maintaining. I definitely do not want to invest £40k to £400k in gold.