Is this the right time to buy gold? Or will it go down more?

Question

Is this the right time to buy gold? Or will it go down more?

Answer 1

There are some who think gold is in a 20 year bullish cycle and this last month is just a natural correction before it continues to go up. WASAX, which is an asset strategy fund that has averaged over 18% a year over the last 5 years, can go into any sector they choose, is still heavily weighted and bullish on gold. I think it will go up from here, but brace yourself for insane volatility in gold and look long term (like 5 years out).  

Answer 2

The price of gold will fluctuate.  Just buy low and sell high if you can time it right.  

Answer 3

No commodities are going down in price.

Answer 4

I personally believe that gold will go much higher in the long run, due to inflationary government policies.  However, that does not tell me how low it might go in the short run. This morning, I see gold is at $789.70.  I think it is a good time to buy, or buy more.  But if you want, you can wait and see.

Grandpa

Answer 5

Entirely depends on your timeframe.

Answer 6

I would venture to guess that Gold will continue lower.  With the Dollar strengthening, there is no real reason to buy gold.  Commodity prices appear to have peaked for now, and with the Dollar strength, inflation worries should begin to ease.  A weak dollar and inflation are the only real reasons to buy gold.  

One thing I will also say is that it makes no sense to try and catch a falling knife.  Gold is in a sharp downtrend, and no one is good at picking a bottom.  It can go down significantly from here.  Gold traded as low as under $300 in just the past seven years.  And, the world's supply of gold never shrinks.  At least wait for it to consolidate at lower levels before considering buying, and keep your eye on the Dollar.  

Scott Cole

www.kungfutrader.com

Answer 7

in my opinion, it will end up bottoming at less than 400

gold has been a terrible long term investment, historically.  historical returns on gold were lower than for treasuries.

any commodity that isn't destroyed when consumed can never really appreciate in price, in the long run.  if prices are that attractive, companies will want to sell more of it, meaning more supply for a relatively constant demand curve.  prices will eventually have to experience reversion to the mean, and prices will fall accordingly.

Answer 8

Gold has plunged as the US Dollar has increased, commodities in general have plunged (technical break down).

There is no industrial use for gold. No industrial demand, means the only buyers are speculators. Speculators don't control markets long term.

Gold is the worst performing investment after diamonds.

-- Chase Performance Digest