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 Replies: 26 / Views: 3,430 |
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Pillar of the Community
United States
2424 Posts |
i feel like I am beating a dead horse with bringing this topic up gain but I feel the need because there is a limit to what I KNOW, and any thing that YOU KNOW will help me make a better informed decision when putting my $$ toward something safer than our weakened dollar...
so with that being said, I have a few K in savings and thought " it would be better served in GOLD than sitting in my bank doing nothing"
is my bank "safer" than GOLD right now?
when I asked myself this question, gold was in the late $1500's, now its nearing $1700! Have I let the train go by the station? or can I still hop on the train and do alright?
will gold continue to go up? (in my opinion, YES)
are there other factors that will push the price of GOLD down? if so, like the dollar getting stronger, which I doubt, what else could I be missing? Edited by SDcoinguy
08/03/2011 08:52 am
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Pillar of the Community
United States
830 Posts |
Here's a weekly chart of the price of GLD over the last year (missing the last few days), I see no reason the trend will change anytime soon.  Have you missed the train, yes but you can buy a plane ticket and catch it at the next city (pull back).  I'd start buying the dips or just dollar cost average in a little each month. I think we will see another dip before the end of summer. Edited by GoThunder
08/03/2011 09:29 am
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Pillar of the Community
United States
1081 Posts |
Is your bank safer, yes, are there much more secure and safe ways to invest your money yes. However, right now, gold appears to be the "it" investment. Also keep in mind that nobody really knows whats going to happen, if they did, they would be incredibly wealthy. Gold could continue to climb, it could level off, or fall back down, so you are taking a chance. Also keep in mind that gold is less liquid than cash. It's not hard to sell, but unless you sell person to person, you won't get the same relative price as when you bought it. So if you anticipate needing the cash relatively soon, then I probably wouldn't invest in it at this time, if you don't, then go ahead and diversify.
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Valued Member
United States
123 Posts |
I too struggle with the idea of buying gold at its all-time high. It just goes against everything I've thought to be wise. However, I am definitely more bullish on gold vs. the dollar, which is why I am not selling any gold that I have. The best you can do to diversify....keep investments in a mix of cash, stocks/mutual funds, and PMs.
I think that a few thousand bucks in a savings account is wise, for the aforementioned liquidity, as an "emergency account" of sorts.
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Pillar of the Community
United States
667 Posts |
I am strong on gold right now even at this high price. However you should strongly remember that when you buy gold or any PM you are speculating that the price will do better. So if you need that money that is in the bank or it would be a total hardship if you lost some of it there may be better options since you are looking for a safe return. When you invest in stocks you have more tools about the companies to make an informed decision. There are no guarantees just more info to make a good investment judgement. PM is really speculation that the price will adjust to certain things in the market place. I'm not saying there is not more info to make a judgement it is just not as clear as the info would be for a company that you are buying stock in. Thus there is no clear window in what the PM will do by the end of the day or the end of the week or next month. If you want to diverse then buying PM's might work for you. If you cannot take the risk of a small to medium loss then it may not be something you want to do. Certainly the rewards can be high but like I stated it comes with what I think is a larger risk. There is a ton of good information out there on gold & silver. I would recommend search Google and reading so that you are comfortable with buying PM's. My PM Investment is only a small part of my total investments. I consider in more risky than my 410k, stocks, mutual funds, other commodities and of course saving a few Greenbacks in the bank. I do struggle the same as you are, I sure would of hated to miss the boat if gold went to $5,000 and Silver to $100. Of course us speculators like to dollar cost average but that only means we have been buying over a longer time. |
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Pillar of the Community
United States
5825 Posts |
My outlook is that if you have $$$$ to gamble and not worry that you can lose a percentage of it. Than by all means, go for it.
On another post, I urge that all collectors/investors should invest at least 20% in PM, buy stocks also, will see bargain prices like in 2008.
Also I need to stress these maybe long term investment, unless you're there at the right time and gain over 100%.
Edited by macmercury
08/03/2011 11:13 am
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Pillar of the Community
United States
830 Posts |
Also keep in mind in cash you'll be devalued at the rate of inflation which seems to me to be much higher than the official Fed numbers that exclude food and energy.
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Pillar of the Community
United States
1450 Posts |
If you have at least a 6 month supply of food and water,and a 6 month supply of money already put back,then I say go for it! If not,those should be higher priorities for your money. You will save more buying food now and using it when inflation really kicks in. I spend a good bit of time watching farm reports and I can tell you this,beef will soon drop slightly so buy all you can store(make jerky if you have to)because by the end of the year it will be untouchable. PMs are wonderful things and they have served me well but take care of survival first. If I sound like an alarmist,so be it,but taking care of your family MUST come before investment. Good luck,and by the way,I think there is still a ways to go up in gold if you can stand a bumpy ride!
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Pillar of the Community
United States
1026 Posts |
I remember when the last silver bull market came big time think it was back in the 70 I jumped in and bought my 1st silver at $16.00 and some cents. After I got it the market crashed and it took 25 years to get back to that price.
Now things are much different in the world today but as stated you never know?
I myself want to get some more PM but just can't pay that price for more gold knowing what happened to me back in the 70s
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Pillar of the Community
United States
830 Posts |
Quote:
Also keep in mind that gold is less liquid than cash. It's not hard to sell, but unless you sell person to person, you won't get the same relative price as when you bought it. Don't forget about the ETF options for gold (like GLD), very liquid, very small spread usually on the order of a penny per share between the bid and ask. |
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Pillar of the Community
United States
5825 Posts |
hockingzig is right that everyone should have enough cash to sustain at least 6 months worth of food and supplies, if it ever SHTF, you be glad you have that ration.
Family No# Uno.
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Valued Member
United States
59 Posts |
you guys that are afraid to enter because gold is at an all time high need to get over that. you must take risk to bear any reward, if the $800, $900, $1000, $1100 guys took that stance they would have been left behind at the depot. this train has just started getting up to speed.
i see nothing bearish for pm's - unless the dollar and EVERY other currency out there gets stronger this stuff is going higher.
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Valued Member
United States
123 Posts |
Quote:
you guys that are afraid to enter because gold is at an all time high need to get over that. you must take risk to bear any reward, if the $800, $900, $1000, $1100 guys took that stance they would have been left behind at the depot. this train has just started getting up to speed.
i see nothing bearish for pm's - unless the dollar and EVERY other currency out there gets stronger this stuff is going higher. I am definitely not recommending staying completely away from gold, just to make sure that your investments are diverse. However, it seems like you are simplifying things a bit. Gold can, may, and probably will continue to go up...but eventually it will reach a point where people will sell it off and invest in stocks, real estate, other PMs, etc. There is a lot more to it than just currency vs gold. |
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Pillar of the Community
United States
3670 Posts |
Dad says the heck with it in a SHTF situation, as your not gonna wanna live through it anyway....
Perhaps, but what if it is just for six months, and not the end of the world? One may wanna try an endure 6 months or a year even two or longer IMO, as oppossed to giving up and putting the 45 up side the head....
I think preparing just for the peace of mind alone is worth it. I can't control when people around me get sick or die, but I can control my food, ammo, weapon, shelter ration situation etc., and be ready for anything....
Edited by Silverhawk74
08/03/2011 7:42 pm
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Pillar of the Community
United States
3670 Posts |
"I am definitely not recommending staying completely away from gold, just to make sure that your investments are diverse. However, it seems like you are simplifying things a bit. Gold can, may, and probably will continue to go up...but eventually it will reach a point where people will sell it off and invest in stocks, real estate, other PMs, etc. There is a lot more to it than just currency vs gold."
We all know what goes up, must come down, but what if it is 24 years, lol. Gold has had little fail since 2000, minus the housing fiasco back in 08/09 if I am not mistaken. Did it not drop from like 1000 to 700, before taking off again?
A 300 dollar hickup in almost 12 years is not too shabby IMO....
Edited by Silverhawk74
08/03/2011 7:45 pm
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Pillar of the Community
United States
4008 Posts |
Quote:
If I sound like an alarmist,so be it,but taking care of your family MUST come before investment. Not a bit, Hock. The bottom line is this. Are we better off to prepare for terrible problems in the future or not? If it is better to plan than to not plan, we all have to create plans that fit our lives. Protecting the family is Job #1 for a man. Being prepared for the O-S! problems of the world that can impact our lives is just another part of that job. Awareness followed by planning and then action will lead to the most favorable outcome. I tend to rate potential problems on a probability scale and then devote resources towards those problems on that basis. After watching the DC Circus for the past couple of weeks, it is pretty clear that they do not have a clue as to why employment is down, that prices are up, or what to do about a slow economy. They remind me of headless chickens dashing around the yard, accomplishing very little. My view of PMs is basically as a hobby and as an insurance policy. While we do not know what the prices for PMs will be in a month, a year, or a decade, we DO know that our government's weak dollar policy is gutting the buying power of the US dollar. We also know that gold and silver are stores of value that are powerful inflation fighters. Because of all this, an investment of 5-10% of a person's wealth in PMs is not a bad plan, no sir, not a bad plan at all. Do not listen to those who have no plan but, for reasons known only to them, object to our plans. |
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Replies: 26 / Views: 3,430 |
Posted 08/03/2011 10:13 am
