Is Gold Good?

[Gone4Good]

Is gold good?

I used to like it in some 'schlager, but my tastes have matured since then.

 

[Arnie]

Just for fun, I ran the XRay Interpreter Stock Intersection tool on my portfolio. I am the proud owner of Freeport-McMoRan Copper and Gold B, a whole 0.05% of my portfolio. Woooooooo

Hey, good call ... I've got that too through VINIX. Also some Goldman Sachs in VINIX, does that count?

 

[Amethyst]

Real gold is very good against bare skin!

It's even better when it has some diamonds embedded in it.

Amethyst

 

[obgyn65]

I have never bought gold in my life. And don't intend to buy any in the future.

Is real gold really good for an IRA? There is too much on TV saying to buy gold NOW. Should I sell some stocks and buy gold now or is it too late?

 

[Orchidflower]

No, gold is not good for you. Send it to me in Phoenix. I'll get rid of it for you. It's the least I can do for everyone here.

 

[SVHoper]

Can't help you with timing a gold purchase... or any timing wotsoever. My timing has far too often resulted in buying high and eventually writing off on my tax return. However, perhaps my strategy may be useful to you too.

I considered purchases in: commodities (DJP, PCRIX, DBC), energy (VGENX), gold and individual stocks on and off for a month or so. They weren't in my Asset Allocation, but my AA is less than 6 months old, so I reckon I could've made a 5-10% modification without really cheating. I looked at lots and lots of graphs, read lots of forum threads, but finally remembered my bad timing and decided they would all have to fit in my "self-funded speculation allocation" (initial ~$5k in 2008 mad money + profits), from which I can buy anything I want... unfortunately this is currently 100% in a barely break even Citigroup. I think this pretty much limits portfolio damage. If my judgement (or luck) improves, I get to spin the speculative wheel again. If my timing doesn't improve, I think I will end up shouting myself some more mad money (rationalization - I LBMM and don't buy lots of shoes or clothes).

 

[rescueme]

Not my words, but maybe something to consider:

"But here’s the problem with why gold is not a substitute for bonds. Gold is much riskier than bonds. Since 1979, gold has had risk, or standard deviation, of 21.3 percentage points, says Morningstar. Yes, you read that correctly. Gold is 232% more risky than bonds and even riskier than large U.S. stocks. So if you shift into gold thinking you’re protecting yourself, you may very well be boosting your risk and subject your portfolio to extreme peril."

Is gold a better investment than bonds for reducing risk? - USATODAY.com

 

[beowulf]

I can guarantee, with a statistical probability of 99.9998%, that, if I decide to buy gold, it will immediately start to decline in price and end up being used for door stops . So, whatever I do, please do the opposite .

 

[Eder]

The only reason gold is soaring above $1400 is because I've refused to own it since BRE-X (I guess I didnt own it during BRE-X days either!)

 

[Free To Canoe]

Here's a 10 year gold chart:

Gold Chart - Last 10 years

IMO, that buying opportunity has passed.

I see that Au has doubled since 2007.

Double means bubble.

 

[bruce1]

I would really like to know when the bubble going to end.

 

[haha]

Real gold is very good against bare skin!

Please, don't stop talking....

Ha

 

[haha]

I would really like to know when the bubble going to end.

Easy. As soon as you go all-in.

Ha

 

[rescueme]

I would really like to know when the bubble going to end.

Probably with a prick ....

 

[ls99]

Gold must be good.

Every piece of gold I ever bought was stolen at various times. A few Krugerrands, Maple leafs etc.

The only piece of gold I have left is my late father's wedding ring, which is now my wedding ring.

Will never buy any gold. Still have a few silver coins, if I can only remember here they are.

 

[kumquat]

"Is gold good?"

Can Catsup make it taste better? If yes, then no.

 

[M Paquette]

I remember the last time the government shutdown. The Dow dropped to 0, airplanes fell from the sky, the sun refused to rise, and people burned their paper money to provide warmth while chewing on the precious gold bars as the only remaining supply of food.

 

[Ed_The_Gypsy]

Gold is pure speculation. It does not pay any dividends. I would rather buy lottery tickets. They make as much sense.

 

[atlas1212]

Ed, I can't believe you'd say the lottery and gold are the same. ALL stocks are pure speculation by nature.

I bought a large amount of gold at 350 an ounce. Now at 1400-1500... So, what is wrong with my investment? It has outperformed the market and I can liquidate at spot anytime I want. As long as the dollar is weak, and it will be for some time, metals are a good investment in my opinion.

 

[beowulf]

But are you selling it at this price or hanging on to it in case it continues to go up? Everything has a sell point and it can go down as easily as it went up - and that has happened before. They key is to know when enough profit is enough and then take some.

 

[atlas1212]

Yes Beowulf. That is true of any investment. But to call gold a lottery ticket..well, i guess I won the lottery. I didn't buy on dumb luck, I bought based on the weakening dollar.

 

[beowulf]

I believe that we all like to think that we make investments for reasons other than random choices. In your case, gold was an excellent investment, as it would have been for me if I had bought gold sovereigns at $20 each in 1973. The question is whether I would have held on to them until now, which I sincerely doubt. Gold is no more a lottery ticket than any other investment - they all have varying amounts of risk.

 

[MasterBlaster]

Run For Your Life

There is a way of thinking that includes keeping gold and jewels as a universal store-of-value with some portion of your assets.

Then if and when you need to flee from the invading Huns then you can flee with your (gold and jewels) and still have some wherewithal.

Try doing that with your rental house.

 

[beowulf]

Where would you flee to? If the US collapses economically, there won't be too many countries that are safe havens.

 

[MasterBlaster]

I would flee to the heartland and hide behind a scare-crow. Either that or I'd go to Las Vegas where it's still safe.

Get out while you still can !