Any "Gold Bugs"?

[ricoba]

I am thinking about buying gold or silver in small quantities on a semi regular basis. Anyone with any advice on the best way to do this?

TIA

 

[jaym]

Be very careful as you are likely to pay a significant premium price for gold now. Seems to be reaching a new high weekly given the current financial market volatility and global debt firestorm.
I believe I heard yesterday that gold price per/oz. has now surpassed platinum, a rare occurrence.
Couple of alternative strategies to think about:

Possibly gain gold exposure from a diversified Commodities ETF that will have only some exposure to precious metals but a good component for portfolio asset allocation and hedge. Target possible exposure to only 10-15% depending on risk tolerance.
Look into acquiring a Gold Miners ETF, which do not carry the same premium as the actual refined metal, but does have upside potential as the price of gold continues to rise. Although some gold miner stocks have risen a lot recently.
Buy some good quality gold jewelry so at least if the metal price has a correction, and it will eventually, you at least own a tangible and practical asset.
Good luck....

 

[bogey21]

I was a gold bug and buyer when gold was $325 - $350. I sold a bunch at $750 and the rest about $1,000. I wouldn't touch gold at these prices. But if you do and want to buy gradually, I recommend the Austrian 1 ducat. It is about the size of a thin dime and is approximately 1/10 oz gold.

George

 

[nightnurse613]

I like the recommendation to buy jewelry. At various times we have owned silver and gold. Selling it became a hassle because some people wanted us to assay it - it was more a novelty than any real serious quantity. If the world economy ever goes down, I figure people will probably kill us before they give us any food for our gold - it's hard to break a 1 oz gold bar, too!

 

[Sea Six]

I would never recommend buying jewelry. If you want gold, buy solid gold coins or bullion, not 14K compounds. 99.9999%. Not old Eagles that are 90%, and not Kruggerands. Buy SOLID GOLD. Modern American Eagles, Canadian Maple Leafs, Chinese Pandas. Search eBay, see what the dealers are offering. Don't buy jewelry.

 

[Jaybee]

You might look into buying some gold mining stocks. I made some money on ANV (Allied Nevada), but everything seems to be a crap shoot right now I bought some GLD at $150, and of course I wish I'd been brave enough to buy more, but that was scary for me. ;-)
Or maybe something like Sharebuilder, where you can add so much a month, or whenever you feel you can.

I am thinking about buying gold or silver in small quantities on a semi regular basis. Anyone with any advice on the best way to do this?

TIA

 

[dioxide45]

I was a gold bug and buyer when gold was $325 - $350. I sold a bunch at $750 and the rest about $1,000. I wouldn't touch gold at these prices.

I would agree, those looking to buy gold now have probably missed the market. Sure it can go higher, it can also go much lower. The old buy low sell high still means something. Buying gold now is not buying low.

 

[tompalm]

Gold or GLD has been bouncing off its 20 day moving average as it goes higher. Right now, it has bounced a lot higher and it has gotten away from a good entry point. The price will probably go higher, but maybe wait until the timing is better. The real question is how much higher will it go and are you buying it for profit so that you can make money in the short term, or do you want to hold it for the long term. If holding for the long term, you will probably be fine, but I am willing to bet it will bounce off $2000 and not get above that for a long time.

 

[MuranoJo]

Clark Howard said on today's show if you do want to buy in, go with the ETF.

 

[dioxide45]

Gold or GLD has been bouncing off its 20 day moving average as it goes higher. Right now, it has bounced a lot higher and it has gotten away from a good entry point. The price will probably go higher, but maybe wait until the timing is better. The real question is how much higher will it go and are you buying it for profit so that you can make money in the short term, or do you want to hold it for the long term. If holding for the long term, you will probably be fine, but I am willing to bet it will bounce off $2000 and not get above that for a long time.

As the economy improves and the stock market starts to go up again, people will sell gold to buy in to the market. That will cause a drop in gold prices. So I don't know if buying gold now even for the long term is a good option.

 

[tompalm]

As the economy improves and the stock market starts to go up again, people will sell gold to buy in to the market. That will cause a drop in gold prices. So I don't know if buying gold now even for the long term is a good option.

That sounds logical, but it doesn't actually work that way. Look at a chart of GLD and a chart of SPY from Sep 1, 2010 to May 2011. They both went up.

For the other post, GLD is an ETF and I think you are right. That is the best way to buy Gold.

http://quote.morningstar.com/ETF/f.aspx?t=GLD

http://quote.morningstar.com/etf/f.aspx?t=SPY&region=USA

I do think that if everything gets straighten out with the Euro and everything goes good with our team of 12 in congress that Gold will go down. But, I don't think that will go so smooth and Gold will stay high. If I was betting on it, I would bet it would stay between $1500 and $2000 an ounce for a long time unless there is some really bad news or some really good news.

Yesterday I was betting that 1120 on the S & P 500 would be the bottom of this market and bought some stocks. Now, I wish that I had not done that. It looks like we will be going lower next week. It is a gamble.

Buying gold is a crap shoot, but probably a lot safer than buying stock or mutual funds. I would wait until GLD comes down to $170, or don't buy it. This market will be going up and down for a while longer. I think our team of 12 has until Nov 25th to come up with a budget and Gold will be up and down for a while.

 

[JackieC]

Why buy gold and Silver

We have recently investing in gold and silver.

This video below, I beleive explains the reason why many people believe gold can go to $20,000 per oz.

Not sure about that, however it will still go up a fair bit I beleive.


http://www.youtube.com/watch?v=tj2s6vzErqY


cheers

Jackie

 

[Numismatist]

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<--- Gold bug?

Well you know the old saying...when everyone is shouting 'get into gold' that usually the time to get out.

Gold at these prices (now above platinum) is clearly in a bubble and being traded both on fear and speculation. IMO, not the best time to 'get in'. I will say you probably could make a nice short term gain by flipping gold while it is still hot.

Imo again, when the election is over and/if the economy starts to heal a bit, the fear will subside and gold will return to more normal levels; albeit, higher than past years!

 

[GetawaysRus]

IAU is another physical gold ETF (in addition to GLD, which has been mentioned above).

The share price of IAU is about one tenth that of GLD, and the management fee is slightly lower.

These two ETFs track one another pretty closely.

 

[3kids4me]

I have owned IAU since February of 2010; it has increased 70 percent since that time.

The market is a mess right now, but IAU is an ETF so you can get out quickly. And I still like Apple...it's an excellent time to buy it, IMO.

 

[Pat H]

I like Suze Orman but I know a lot of folks don't. On her show last night she said to buy gold only with money you can afford to lose. She feels it will go to $2000 - $2300 but another analyst she admirers is predicting $5000. She said that gold changes prices quickly in either direction and you may not even have a chance to sell at a decent price when it drops.

 

[Jaybee]

Don't feel like the Lone Ranger. I, too, added a bit to our portfolio on Friday. Smart? Stupid? Who knows? I wish us luck.

That sounds logical, but it doesn't actually work that way. Look at a chart of GLD and a chart of SPY from Sep 1, 2010 to May 2011. They both went up.

For the other post, GLD is an ETF and I think you are right. That is the best way to buy Gold.

http://quote.morningstar.com/ETF/f.aspx?t=GLD

http://quote.morningstar.com/etf/f.aspx?t=SPY&region=USA

I do think that if everything gets straighten out with the Euro and everything goes good with our team of 12 in congress that Gold will go down. But, I don't think that will go so smooth and Gold will stay high. If I was betting on it, I would bet it would stay between $1500 and $2000 an ounce for a long time unless there is some really bad news or some really good news.

Yesterday I was betting that 1120 on the S & P 500 would be the bottom of this market and bought some stocks. Now, I wish that I had not done that. It looks like we will be going lower next week. It is a gamble.

Buying gold is a crap shoot, but probably a lot safer than buying stock or mutual funds. I would wait until GLD comes down to $170, or don't buy it. This market will be going up and down for a while longer. I think our team of 12 has until Nov 25th to come up with a budget and Gold will be up and down for a while.

 

[Sea Six]

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Well you know the old saying...when everyone is shouting 'get into gold' that usually the time to get out.

I know what you're saying, but everyone said "SELL!" when it hit $1000. I held out and sold a few coins at $1200, but thought I should wait it out. Now at $1800, I'm thinking of selling.

 

[Numismatist]

I know what you're saying, but everyone said "SELL!" when it hit $1000. I held out and sold a few coins at $1200, but thought I should wait it out. Now at $1800, I'm thinking of selling.

EXACTLY...if they were saying sell at 1,000 you should have been buying

I sure was.

 

[Passepartout]

I have some $300/$350 gold, and some $750-$800, but no $1800 gold. In hindsight, probably should've bought more, but that's water under the bridge. Still, it feels good to have enough of the firstmentioned that if 'it' all goes south, I will be eating for a good while.

Sure seems like a bubble right now, and while there is some upside, it could go a long way down, too. Nobody knows when, just that it's a certainty. (imo)

Jim Ricks

 

[loafingcactus]

I have the gold that my great grandma hid through the gold prohibition for the end times, and I guess I'll keep it until then too. It feels wrong to sell it and I don't have the slightest clue how I would declare the cost basis if i did.

My ex is from a culture in India where you give high purity gold to people you love for the same reason. It is jewelery, yes, but it is also a final hedge against starvation.

 

[tompalm]

GLD closed at $170 today and at a good entry point. I am not an expert on this, but from what I see from two newsletters that I subscribe too based on technical information, this would be a reasonable price to pay based on the long term trend. The two companies are Investview $99 per month and Sector Surfer $30 per month and worth every bit I pay for them. However, the technical info is best for short term traders and they are right about 80 % of the time.

The fundamentals come from CNBC or CNN. The two things driving the price of gold is currency instability and inflation. The Euro situation with Greece, Germany, Italy and other counties does not appear to be good. Our super committee, or team of 12 that will come up with a new budget appears to be business as usual, or not good.

Your post got my attention and now I plan to buy some GLD. The price could get cheaper tomorrow, and if the stock market starts doing well in September, Gold could go down some more. But, the with the currency situation around the world, Gold looks like a safe bet.

By the way, Japan was downgraded today. I don't see any good news. Maybe Friday, the Fed will have something good for us, but I am not counting on that. I am betting that gold will go higher and it will break that $2000 resistance line sometime in the next year.

 

[Elan]

There'a gap in the GLD chart that will probably get filled before it goes higher. Around $164 in early August. May happen tomorrow. Would likely be a good spot to go long.