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Sanya12364 Posts
On January 04 2011 01:26 Hawk wrote:
Also, there's absolutely no logic in gold speculating unless you're gonna drop down a lot of money, like five figures or something. At 1,400$ish a pop, you'd need to to go up a real lot to make anything. If you had $10k to blow, you'd be better spent putting it in silver, since that going up just a $1 or $2 would make you some cash.
Five figures is the only way to invest. I wouldn't think of setting up a portfolio with anything less than 100k. For speculative targets, you're better off with something else in this market place. There are plenty of opportunities if you want to do the work, and it will be A LOT OF WORK: research, reading, and analysis. If you want a portfolio anchor, you might diversify into gold and silver. Gold may be a bubble and it may not be. The world might just be rediscovering precious metals and a global shift in taste for wealth protection vehicles combined with the secular bull market for mining products will produce such a growth pattern. I don't have enough research to justify the price of Gold.
However, the Gold bubble if it is actually a bubble is not very dangerous. The bubble is not in the mania phase of a bubble. There are far too many naysayers for that to be the case. There are also far too many sellers of gold (like IMF) for mania to take over and for the price of gold to levitate far above its supported valued. In fact, the more people calling a huge gold bubble, the less likelihood there is one.
The moral of story applicable with all types of speculation is do your work early and hard. If you are lazy, stupid, or rash, don't even bother.
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never invest in any rumor or a "common knowledge" about one product, service or idea ... its RISKY and/or not profitable when all think the same way.
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Diversify your portfolio; don't put all your eggs in one basket.
I wouldn't invest in gold. I would invest in the rare metals that are needed to make lithium ion batteries and other tech devices.
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some people don't get the purpose of a gold investment imo
investing in gold is not for getting rich like you do with equities, it's purpose is to stay rich, so to speak
like when a big crash comes and you can basically burn all your paper money, it's not the case with gold, it has still a certain value even if it drops down you can still deliver a certain part of your capital into better times
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You have to take inflation into account. It's not just gorgeous as the graph implicates.
On the other hand, cost efficient synthesis of gold, if possible, has major implication as all major banks around the world whores gold in order to back their nation's currency. I can not even grasp the implication that man made gold can have on the world economy.
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On January 03 2011 17:27 Jago wrote:Show nested quote +On January 02 2011 10:30 Hatsu wrote:On December 27 2010 22:20 decaf wrote:
Do NOT invest in gold, the gold prices have fallen if you take inflation into consideration! Ahah what? Taking inflation into account, gold prices, over the long run, have barely kept up with inflation and in a lot of periods have even slightly lagged behind. Gold is a speculative asset. It pays no dividends and there is no real valid reason for NAV appreciation beyond the speculative part (unlike with stocks or with bonds in an enviroment of decreasing rates).
In a lot of periods gold has also exceeded inflation by a large margin (for example, over the last 15 years) and consistently. You dont need a good to always outperform inflation to be a good "investment" and to call "speculative" something that lasts for more than a decade is kinda bold.
Also to claim that gold's NAV cannot appreciate is highly debatable since a) you dont really usually NAV for commodities and b) even if you actually did, I could claim for example that its NAV increases as political tensions rise or as currency fluctuations increase.
Anyway, as pointed out already gold (as anything else) is not a good investment on its own - it needs to be part of a balanced portfolio.
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I love all the bs going on in this thread
If you got a lot of dollars around, you should almost certainly invest in gold?
Why?
Because you are hedging yourself against the dollar that way. A STUPID thing to do would be to keep all of your "investments" in dollars.
Also in this particular case, i would much rather take my risk on gold than on dollars right now...
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Blazinghand
United States25561 Posts
Ok guys I'm just gonna say, since gold is at an all-time high, wouldn't now be the time to SELL gold? Especially since it's usually lower priced, one would expect the value to drop in the near future.
I think usually what happens is something rises in price and people are like "hey guys, this is rising in price, let's buy it!" and that raises the price even more.
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On January 04 2011 13:27 BrTarolg wrote:
I love all the bs going on in this thread
If you got a lot of dollars around, you should almost certainly invest in gold?
Why?
Because you are hedging yourself against the dollar that way. A STUPID thing to do would be to keep all of your "investments" in dollars.
Also in this particular case, i would much rather take my risk on gold than on dollars right now...
That's ignorant, the dollar is the staple currency of the world, there's a lot more trust in the dollar than gold, look at the euro, it's tanking.
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Investing in Vespene gas is best IMO. :D
Honestly I think investing in gold is not a bad idea but just like everything unsure, don't bet the house on it.
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On January 05 2011 03:39 Blazinghand wrote:
Ok guys I'm just gonna say, since gold is at an all-time high, wouldn't now be the time to SELL gold? Especially since it's usually lower priced, one would expect the value to drop in the near future.
I think usually what happens is something rises in price and people are like "hey guys, this is rising in price, let's buy it!" and that raises the price even more.
That's actually a pretty common misconception imo. "Buy low sell high" isn't really that great of a mantra to go by. "Buy high, sell higher" is what I like to call what I think is good to do. You need to find out when a market is breaking through (such as if it just broke a 12 month high or something) and ride it to a preset point which you are going to sell at (you need to determine this before you even get in, or you are going to get cocky, you also need to STICK TO IT!). Same goes for going short on a stock, place a short order when its tanking, and then get out at a preset point. Obviously this isn't going to work 100% (its the freaking market what do you expect), but I think it's a much better philosophy then "buy low sell high".
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I would have to see some better information from other sources.. I think there are better things to invest 20k in.
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On January 04 2011 05:29 dukethegold wrote:
You have to take inflation into account. It's not just gorgeous as the graph implicates.
On the other hand, cost efficient synthesis of gold, if possible, has major implication as all major banks around the world whores gold in order to back their nation's currency. I can not even grasp the implication that man made gold can have on the world economy.
I thought the gold standard was long since dead?
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On January 05 2011 04:06 Almin wrote:
That's ignorant, the dollar is the staple currency of the world, there's a lot more trust in the dollar than gold, look at the euro, it's tanking.
Trust in the USD? Are you kidding me?
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On January 04 2011 01:52 TanGeng wrote:Show nested quote +On January 04 2011 01:26 Hawk wrote:
Also, there's absolutely no logic in gold speculating unless you're gonna drop down a lot of money, like five figures or something. At 1,400$ish a pop, you'd need to to go up a real lot to make anything. If you had $10k to blow, you'd be better spent putting it in silver, since that going up just a $1 or $2 would make you some cash.
However, the Gold bubble if it is actually a bubble is not very dangerous. The bubble is not in the mania phase of a bubble. There are far too many naysayers for that to be the case. There are also far too many sellers of gold (like IMF) for mania to take over and for the price of gold to levitate far above its supported valued. In fact, the more people calling a huge gold bubble, the less likelihood there is one. The moral of story applicable with all types of speculation is do your work early and hard. If you are lazy, stupid, or rash, don't even bother.
You guys know nothing about financial advice. A bubble is just that its INFLATED, it will crash. The last commodity that did that was OIL. remember 5.00 gas was coming!! oh know! And everyone bought oil and then it crashed and everyone who didn't get out lost money. Yes, gold has done well over a 5-7 year period. But its a bubble, its an artifical inflated bubble. There isn't a reason gold is going up other than FEAR. When the FEAR subsides so will gold.
Growth Mutual funds > Investment than Gold
Real Estate > Investment than Gold
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Well im new to the whole investing system.
Im 20, currently in university and wanted to know if Investing can be *(safe)* that can bring good profits.
is $500 a sufficient money to start ?
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If you want *safe* money, get some government bonds, simple as that. And just from a layman's perspective, oil and gold differ in a basic way; oil is restricted in how much they choose to sell, thus inflating the prices.
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On January 05 2011 07:03 purecarnagge wrote:
You guys know nothing about financial advice. A bubble is just that its INFLATED, it will crash. The last commodity that did that was OIL. remember 5.00 gas was coming!! oh know! And everyone bought oil and then it crashed and everyone who didn't get out lost money. Yes, gold has done well over a 5-7 year period. But its a bubble, its an artifical inflated bubble. There isn't a reason gold is going up other than FEAR. When the FEAR subsides so will gold.
Growth Mutual funds > Investment than Gold
Real Estate > Investment than Gold
Yeah I mean the rise in gold has totally nothing to do with insanely high government debts and low growth and general instability in the fx market. Or is that what you mean by Fear?
Also lol at suggesting that Real Estate is a better investment than gold considering the current situation and the prospect for interest rates.
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On January 05 2011 07:53 Hatsu wrote:Show nested quote +On January 05 2011 07:03 purecarnagge wrote:
You guys know nothing about financial advice. A bubble is just that its INFLATED, it will crash. The last commodity that did that was OIL. remember 5.00 gas was coming!! oh know! And everyone bought oil and then it crashed and everyone who didn't get out lost money. Yes, gold has done well over a 5-7 year period. But its a bubble, its an artifical inflated bubble. There isn't a reason gold is going up other than FEAR. When the FEAR subsides so will gold.
Growth Mutual funds > Investment than Gold
Real Estate > Investment than Gold Yeah I mean the rise in gold has totally nothing to do with insanely high government debts and low growth and general instability in the fx market. Or is that what you mean by Fear? Also lol at suggesting that Real Estate is a better investment than gold considering the current situation and the prospect for interest rates.
Gold is worth nothing. Its not used to support the dollar or other currency. If government fails gold will just be another mineral. You will want generators, guns, ammo, and food. You will not want "gold". Again, see oil bubble 2 years ago? Yeah how do you think all those people liked there get rich scheme when it crashed and left them holding long term or taking the loss and moving on.
Gold is a horrible investment. It's speculating in precious metals, and you're going to lose out when you play with gold.
Gold has a 70-year track record of 4.2% returns. That's about the rate of inflation. It's awful. All the rate of return that gold has made has been in the last seven years, and even then it will go up and down and up and down. It's very volatile.
Real estate is easy to do.
In real estate rental, if you manage it well and you buy it right, which can be a couple of very big “ifs”, your rate of return should be well in excess of what you’d make on a mutual fund. However, you’ve also got your hassle and effort involved. If you average 12% on a mutual fund, you should average 15% to 25% on a rental, all things included.
To get a good deal in real estate, you have to have patience and know the market. You can find good deals through realtors. When I’m buying investment property, I never pay more than 80 cents on the dollar for it. If I’m going to, I just don’t buy it because I’m looking for a deal. In real estate, money is made at the buy.
Hassle factor = welcome to becoming a landlord.
so for the record. Yes, if I had a bunch of money right now I would be pouring money into the market looking for quality investment properties to rent out.
The time to buy on the stock market was when the housing mess started and all the financial stocks were beaten down. Some still are down. The market is up about 10-12% for the year if I remember correctly. My 401k did very well.
Its okay its obvious you know little about finances. A person who is good with money has patience and isn't following the market, because they are ahead of it. This is real estate or traditional investment options stocks/mutual funds.
IF your looking to invest, Growth Mutual funds are the way to go. There are many that have averaged 12% or higher. They are hands off for the most part. You typically need 1k to start, but to get into the good or more reasonable ones you will want anywhere from 2500 to 5k. That would be the lowest amount to really start with. Keep in mind you don't want to be cash poor because you "invested it all".
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17070 Posts
On January 05 2011 07:43 compscidude wrote:
Well im new to the whole investing system.
Im 20, currently in university and wanted to know if Investing can be *(safe)* that can bring good profits.
is $500 a sufficient money to start ?
No safe investment will bring good profits.
And $500 is nowhere close to enough money to start (hint: you're orders of magnitude off).
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EPT
