Is it right time to buy Gold?????????

Question

Gold is trading below 800.. What do you think? is it still falling or back to 900 range???????????

Answer 1

I wouldn't touch gold right now.

Gold typically makes a terrible investment, only spiking when economies slump.  For the most part, we've already seen most of the bad news with our economy, and it will probably start picking up soon.  

There may be a little short term fluctuation, but I only see gold going down in the coming months.

The time to invest in gold is when it's languishing at low prices and you start to get a whiff that the economy might be slowing in the months ahead.  Basically, when no one is even thinking about gold.

There was this guy who had a show on the radio for a while from Goldline.  I started listening to it in May and June.  He was peddling gold like crazy when gold was at well over a thousand, and he was trotting out all these reports that gold was expected to go over $1,500 or $2,000 an ounce.  It's no longer on the radio.  Pity, I'd love to call in and ask his listeners how they did taking his advice to buy when it was over $1,000.

Answer 2

Gold .It is always a good idea to have some gold in your portfolio 5 to 10 % .Is the time to buy now ? Yes as gold is on sale now, but in saying that it could go down more if the dollar goes up and oil goes further down. Could buy some now and more if it goes down.

Physical gold is like cash in India and Thailand and you can enjoy it wear it. Paper money is just what it is paper, a promise note that you trust. Take a look at the USA dollar in the last few years. It has gone down and down. And you can’t wear it. Gold does have its ups and downs but it is more trust worthy than paper money. If you want gold stock try GLD.I think this is a terrific time to buy, or buy more. Even if it dips lower, someday you will brag that you bought under $1000/oz. But also many investors now believe that with the falling price of oil, inflation will come down. And lower inflation will decrease the demand for gold. Maybe or maybe not.

But the thing is that declining oil prices might be a sign of slowing economic activity around the world. Which could mean that a nasty recession is on its way.And if this turns out to be true. Then the gold price will probably go up again. People usually hide their wealth in gold, when the economy gets into trouble. After a long run up in prices...it will drop for a while...it's very normal for anything to take a pullback after a long run up...nothing can go up forever.....nevertheless that's not to say they will fall very low.....gold will probably stall around low 750 and probably reach 900 by the end of this year or early 09....oil will fall but will trade in teh range ofr 100-120 late this year......Inflation is still a big risk. according to the Fed statment in the aug 5 FOMC meeting, there is still inflation risk and the dollar could go weak later after this weak rally up...(normal consoldiation) ....if you want buy gold or oil...wait a while.....look at their charts...daily or weekily...there must break the downtrend...in order for the to move up again.....

Answer 3

Others might tell you different, but personally I would not be building a position in gold right now. Commodities and Gold in particular trade to hedge inflation and most importantly, a weak dollar. This is because investors do not want to put money in paper backed securities if they are afraid that the dollar will weaken further.

The reason that Gold has accelerated to it's recent highs and that the dollar has been falling for the past three years against foreign currencies and in the Last year in particular is that the FEDs have rapidly slashed interest rates and had to inject billions of dollars into the banking system, essentially

proliferating money (commonly known as "injecting" money) which dilutes the value of the dollar and causes inflation. For many reasons, the Dollar has recently started to strengthen, and I would truly expect it to continue to strengthen especially as the FEDs start to raise interest rates, and have publicly hawkish on returning to Greenback to it former glory, and restoring the banking system to inherent stability. As a result of investors anticipating this behavior, gold prices have begun to drop, and probably will continue to do so for a while.

That's not to say that Gold might not fluctuate here in the next few months, but I sincerely doubt 900 is a realistic target in the next 3-5 years. Some of the greatest Commodities Investors and Hedge Fund managers have already openly stated in recent weeks that they are selling their positions in gold, or already have done so because of this predictable decline. I have also read and seen some interviews where they are even considering SHORTING gold, which means they are basically willing to bet money on margin that gold prices will drop over the next few years.

So long story short, I would say NO, now is not the time for gold. We might even see it approach the $600 level again, and i would confidently suggest we will see $700 before we see $900 again. So it's just something that requires monitoring of economical events in order to maximize your investment.

Answer 4

No, I wouldn't touch gold with a ten foot pole.  There are plenty of other stocks out there that could be great investments to take a huge chance on gold.  

Answer 5

I think in the long run, gold is going to run up well above 1000, due to inflationary policies being actively pursued by the United States government.  Whether it was hit the bottom of this temporary dislocation is a good question.  I think it's a terrific time to buy.  But if you want to wait and see, that's up to you.

Grandpa