Time to Buy Gold?

lvader

blinko wrote: »

Gold is looking weaker and weaker where on earth is all the uncertainty going to come from and USD weakness that gold needs to rally....?

It could be just demand for Gold, some parts of the world still like it and will buy regardless.

atush

China is importing more gold than ever, having overtaken india as the world's biggest importer. This is largely due to increased dmeand for jewelry by the new middle class.

But that is all taken into acct with todays price, which is abt 30% lower than a year ago.

sabretoothtigger

China is the worlds largest producer of gold. They used to be the 4th largest exporter of gold but now export absolute zero apparently and are one of the largest buyers.
The amount of gold being swallowed up by them has only increased since prices fell I believe.

Around 1600 they were buying regularly, however they realised nobody else had it in demand so they hesitated a while.
Waited for price falls and resumed buying at a lower price or so Ive read

planteria

ongoing Chinese purchasing must be underpinning the price. i haven't seen any suggestions that they are likely to stop buying, either.

sabretoothtigger

Still not time to buy gold apparently. Its done well better recently but Im waiting for the thread titled, 'Gold is useless sell it all now'.
Then I know it'll go back up regularly, I can only assume the current blip will be reversed till that time

atush

Well that is when I bought it lol

DiggerUK

Money supply can still be expanded, and BOE interest rates could indeed be taken negative.
When the central bankers say they will "do whatever it takes" it is best to believe them.
Easy money turned into a bad problem in 2007, and will turn out the same again.......but what choice do they have.

Anybody who counsels against gold in the long term is foolishly ignoring the foundations of sand this boom is standing on. Same situation today as when this thread started..._

atush

Surely you at Digger mansions have now diversified out of gold? Given 30% plus of your total wealth has disappeared? After all, all of your wealth is in gold is it not?

time to give it up my friend.

DiggerUK

Digger Mansions pile of gold came in at an average cost of under £650 an ounce.
From a high point of £1170 an ounce, it has gone down to sub £700. We would like it up higher of course, but who here could have survived a 40% hit on their portfolio and survived.

Other point to take in to account is the difference in gold prices, and equity prices, between now and 2007. Even with dividends included, equity investments aren't a lot to shout about. By all means ride the boom, but what is suggested when this boom goes bust.

Digger Mansions can at least sleep easy in the interim..._

Aegis

DiggerUK wrote: »

Other point to take in to account is the difference in gold prices, and equity prices, between now and 2007. Even with dividends included, equity investments aren't a lot to shout about.

Picking exactly eight years (i.e. from 19 October 2007), an average UK All Companies fund has generated 40% returns with dividends reinvested.

4.3% annualised return, or thereabouts, which is pretty good considering what happened in 2008.