Why invest in Gold ?

Moosie

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I hear talk about Gold. What are some of the reasons to invest in gold and what are some examples on investing in gold.
 

JohnSWA

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I think Gold is more of a hedge investment in a volatile market. Some can make money, but for the most part, I feel that Gold is a week long term investment in terms of growth.
 

danr55

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Investments should be diversified. Some in high risk markets, some in moderate risk investments and some in more stable investments. Gold is one of the more stable investments. If you're a little more adventurous, try gold futures. That puts a little spin on the game. Just remember to always go long with gold.

:cool:
 

cjcj

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Jose your wrong...


A bull market has begun.
Higher gold prices aren’t just possible, they’re inevitable.
When stocks, bonds and other paper investments go down, gold usually goes up, thus reducing overall risk. Having a percentage of your portfolio in gold (and right now a larger percentage based on market conditions) is a conservative, long-term strategy for wealth-building.

In fact, there are a variety of sound reasons why every investor should own gold:

as a hedge against inflation
as a hedge against a declining dollar
as a safe haven in times of geopolitical and financial instability
as a commodity, based on gold’s supply and demand fundamentals
as a store of intrinsic value
as a portfolio divers

Anyone think oil is going to go down? [long term]
How about the U.S. dollar?

Gold is low risk [My opinion] and easy to store... are your guns hard to store?

Everything is an investment... people are losing their ass in the phx. housing market because they jumped in at the peak.

We made some real cash but we sold the last house a few months back [its still for rent]

Gold is Simply a "hard asset"

They key is to have some.. don`t put all your your investments in 1 basket [ diversify]

Paranoid Jose i think not.... Gold is a "lazy" way to make money... it sits there and when it reaches your "sell point" you cash in bigtime....and you didn`t do anything but watch it go up or down..Just like land or a good stock... no maintence! And for me its works cause i`m lazy.....
 

Bambistew

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people are losing their ass in the phx. housing market because they jumped in at the peak.
cj, do you think that jumping in on gold right now would be a smart investment since its at near an all time high? It makes no sence to me.
 

A-con

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The fact is, gold has preformed very poorly OVER THE LAST 20 years. Over the last two or three years, it has done well. There are two reasons I can see to invest, and both of them involve some level of paranoia.

#1 No matter what happens, stock market crash, world war, global disaster, gold will always hold and increase its value.

#2 Gold is one of the most tradable, widely recognized currencies. Any where, any time for any reason, under any conditions. Everybody knows the value of gold.
 

T Bone

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I cashed out my 401k, bought gold bullion. Dressed up like a pirate, rented a Hilti hammer drill, pulled up carpet in my basement and chipped through the floor. Arghhh! Put the gold in an old tin lunch box and sealed the hole with Redi-mix. Any scurvey dog that want to get their mits on me gold will have to go through my ferocious dog and kids.
 

danr55

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T-Bone, The dog doesn't worry me but trying to get through kids scares me to death. You can keep you gold. Actually if you're looking for a long term, reasonably safe investment, diamonds are worth thinking about. The market is extremely tight. The supply is closely monitored and they will never go down in value. Buy GIA certified stones and keep them for a while.

You guys check the price of diamonds 20 years ago and compare them to today's price. You'll see a substanial beat against most any market you can compare them to.

:cool:
 

Moosie

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It's T-bones Wife Jen that I'd be worried about.......

MMmmm Gold bullion, I love soup !!!!!

I do have to say that in this point in my life I'm in the 80%+ risk factor...... Actually I'm probably in the 95%+ sector. Sounds like Gold is at the Lower end. Athough It would be cool to open a Safe and HAve "Me Gold" in thar Maytee !!!!!
 

cjcj

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Jose are you a moron?.. Who said over 20 years? and then some of you follow his stupid lead!

If anyone was paying attention, i stated a few months back sell houses... buy land/buy gold.

Nothing, has even come CLOSE to outperforming real estate in the last 20 years! everyone knows that.

Jose pulls 20 years out of his ass....I just recently[ 1 year ago] bought "investment Gold"
You might want to look at Platinum and Palladium also
bambistew
cj, do you think that jumping in on gold right now would be a smart investment since its at near an all time high? It makes no sence to me.

Houses are at an all time high also [ does that make sence to you?]

Bambistew, Gold will go up and down but will continue to rise {my bet]

The last house we sold has lost money in the last 2 months, ....I will tell you what We can all give our point of views and opinions....But lets play a little game....We start with $100,000.[ fake money] invest in whatever you want...houses, land, stocks,etc... i will say that gold/platinum/silver/palladium, will out perform everything [except land] but keep in mind Gold and other precious metals are very liquid [like cash]...savings accounts are a waste [right now]

You don`t hang on to "anything" that won`t give you the security and return your looking for [including Gold].. I`m betting on Gold to hit my sell point...of $750. an OZ. within 18 months..

We bought some [real money] for less than$425 an oz.

Three Good Reasons to Own Precious Metals Now
Investment experts have long-recommend portfolio diversification and that 10% to 20% (and sometimes more) of an investor's assets be devoted to tangible assets such as gold, silver and platinum bullion and bullion coins. That's prudent asset diversification strategy at any time. But in today's uncertain political and economic environment, there are many (and very sound) reasons to consider investing in precious metals now. Here are three:



Precious Metals Have Been a Solid Hedge Against A Declining U.S. Dollar. The value of the U.S. Dollar declined more than 30% from 2001 through 2004, plunging 5% in just a few weeks. For a long list of reasons, including massive increases in U.S. government deficits totaling trillions of dollars, the cost of a prolonged war against terrorism and a massive trade imbalance, this trend may be just the beginning. This means U.S. Dollars could now be worth less and less every day. Which also means that investments pegged to the U.S. Dollar could be worth less and less every day. Gold, silver and platinum, though, are held and traded throughout the world . . . and their true value (that is, their purchasing power) is not solely or directly dependent on the falling fortunes of the U.S. Dollar. Precious metals, therefore, can be a form of protection against a falling U.S. Dollar. As demonstrated during 2003 and 2004, as the value of the U.S. Dollar declined, gold and silver prices and the value of precious metals expressed in dollars increased.
Precious Metals Have Been a Proven Safe-Haven in Times of War, Political Strife and Uncertainty. Today's financial markets are increasingly at risk from terrorism, political instability and war. As we saw so clearly after the 9/11 tragedy, financial markets can be closed down, and remain closed down, for extended periods of time. As terrorism incidents continue to increase around the world, it is not unreasonable to expect further (and potentially more severe) disruptions in financial markets, banking and commerce in the future. Whenever and wherever tension or hostilities break out, people everywhere quite naturally gravitate toward the assets they trust most. And today, even in our high-tech driven 21st century, the asset class millions rely on in times of trouble is gold and silver. Precious metals have always been, and likely will continue to be, a valued form of "wealth insurance" in good times and bad.

Precious Metals Can Offer Outstanding Price Appreciation and Profit Potential. After the infamous stock market "bubble" debacle in early 2000 wiped out trillions of dollars of investor equity, the major stock indices have failed to return to anywhere close to their previous highs. Gold and silver prices, on the other hand, have increased dramatically - more than 40% - during that same time period. Which means precious metals can produce impressive investment returns even when (and sometimes, especially when) returns from stock, bond and other paper investments decline in value or evaporate completely. The Monex Atlas Account, a way to purchase precious metals using up to 5-to-1 investment leverage, can be a powerful short-term trading vehicle during periods of rapidly changing precious metals prices. And many financial experts have predicted and continue to forecast rising gold, silver and platinum prices in the months and years ahead.

You can keep an "eye" on the gold/metals market ... But i have rolled the dice. it would take a complete collapse for me to lose money... if it drops to $450. an oz i will sell.
 

Moosie

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CJCJ, I don't think everyone is on a Ban-wagon, they are just replying to your comment about :

is a conservative, long-term strategy for wealth-building.
According to the Numbers it hasn't been a Long term wealth builder.

Not knocking Gold but your comment about houses peaking isn't quiet accurate either. Since different areas produce different opportunities and needs the Market adjusts with it. A house here in the Valley is probably 1/2 the cost still of a house there in the valley. If someone can make the same money here as there they are probably gonig to re-locate. There for driving our market up. If it's a Mass move then your Market will settle.

I also don't see how someone can Loose anything in Realestate unless they "HAVE" to sell. And you shouldn't invest if you're gonig to "HAVE" to sell, Not Gold, Not Houses, Not Bullion Cubes in the Basement....

Gold sounds like a Good investment from the timeframe you bought. I hope it continues that trend for ya !!!
 

JoseCuervo

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CJ,
You don't like 20 years? Do 30 years??? If you want to hand-pick short term periods, then why not invest in Google (GOOG) stock? It has appreciated far more than Gold in a shorter period.

CJ, when you use the term "bet" in discussing investments, then I know you don't know what investing is. You are just "bet"ting that you got it right.

If you are convinced that Gold is the play,why not invest in the Gold Producers? Newmont, Anglo Gold, Barrick, Placer Dome, etc??? Their reserves escalate in value with your paranoia levels.

What are the transaction costs buying and selling your coins?
 

A-con

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Wow, it only took you five hundred words to say what took me fourty.

CJCj;
"Precious Metals Have Been a Solid Hedge Against A Declining U.S. Dollar. The value of the U.S. Dollar declined more than 30% from 2001 through 2004, plunging 5% in just a few weeks. For a long list of reasons, including massive increases in U.S. government deficits totaling trillions of dollars, the cost of a prolonged war against terrorism and a massive trade imbalance, this trend may be just the beginning. This means U.S. Dollars could now be worth less and less every day. Which also means that investments pegged to the U.S. Dollar could be worth less and less every day. Gold, silver and platinum, though, are held and traded throughout the world . . . and their true value (that is, their purchasing power) is not solely or directly dependent on the falling fortunes of the U.S. Dollar. Precious metals, therefore, can be a form of protection against a falling U.S. Dollar. As demonstrated during 2003 and 2004, as the value of the U.S. Dollar declined, gold and silver prices and the value of precious metals expressed in dollars increased.
Precious Metals Have Been a Proven Safe-Haven in Times of War, Political Strife and Uncertainty. Today's financial markets are increasingly at risk from terrorism, political instability and war. As we saw so clearly after the 9/11 tragedy, financial markets can be closed down, and remain closed down, for extended periods of time. As terrorism incidents continue to increase around the world, it is not unreasonable to expect further (and potentially more severe) disruptions in financial markets, banking and commerce in the future. Whenever and wherever tension or hostilities break out, people everywhere quite naturally gravitate toward the assets they trust most. And today, even in our high-tech driven 21st century, the asset class millions rely on in times of trouble is gold and silver. Precious metals have always been, and likely will continue to be, a valued form of "wealth insurance" in good times and bad.

Precious Metals Can Offer Outstanding Price Appreciation and Profit Potential. After the infamous stock market "bubble" debacle in early 2000 wiped out trillions of dollars of investor equity, the major stock indices have failed to return to anywhere close to their previous highs. Gold and silver prices, on the other hand, have increased dramatically - more than 40% - during that same time period. Which means precious metals can produce impressive investment returns even when (and sometimes, especially when) returns from stock, bond and other paper investments decline in value or evaporate completely. The Monex Atlas Account, a way to purchase precious metals using up to 5-to-1 investment leverage, can be a powerful short-term trading vehicle during periods of rapidly changing precious metals prices. And many financial experts have predicted and continue to forecast rising gold, silver and platinum prices in the months and years ahead. "

A-con;
"#1 No matter what happens, stock market crash, world war, global disaster, gold will always hold and increase its value.

#2 Gold is one of the most tradable, widely recognized currencies. Any where, any time for any reason, under any conditions. Everybody knows the value of gold."

Jose is just pizzing in your cherrios, he probably has a safe full of gold.
 

cjcj

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Funny, if he is smart he should have some.
I am trying not to turn this into a SI/ current events. this is about making money.
So if anyone has a "tip" on an investment i am willing to at least listen.:)

From some of the comments, its clear not to many have played around with their own money... but thats OK.. i played it safe until i was 35....:eek:

I know the old Hoser is messing with me, ... Moosie i was talking about the AZ phx. Metro housing Market [its still overpriced] I.M.O.

I made some "obscene" :BLEEP: money last year flipping a couple of houses with a partner.. but i think those days are over. 50% increase in 1 year? someone has to lose....But there were Millionaires made overnight for sure, mostly fueled by undervalued houses to start with....then the buying frenzy that followed.

Jose i don`t like stocks at the moment.[ including Gold stocks]..GM,Ford, etc.. i smell trouble ahead.. :eek:

Call me paranoid if you wish...just keep your eye on the price of hard assets. in the next 2-3 years, and land.hump

Jose, Tell me how i will lose money on Gold... when i can sell it before it reaches my buy point?..:confused: ...You have to shop around on any investment....

Flipper how much Microsoft did you have?:)
I actually had some...:) but i also had Go- Video.:(

Hey i hope everyone makes money on hunttalk.....but like i said before... when someone wins... others will lose....
I still prefer land over houses [long term]

As far as Gold goes..i wouldn`t hold it [long term]. exception "rare" gold coins?

i think the right economics are in place for it to go up,and up.

if i`m wrong i will unload it before i lose a dime...that includes a 1% over cost commission and shipping [free for me].:)
 

JoseCuervo

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cjcj said:
I know the old Hoser is messing with me, ...
Jose i don`t like stocks at the moment.[ including Gold stocks]..GM,Ford, etc.. i smell trouble ahead.. :eek:

Call me paranoid if you wish...just keep your eye on the price of hard assets. in the next 2-3 years, and land.hump

Jose, Tell me how i will lose money on Gold... when i can sell it before it reaches my buy point?..:confused: ...if i`m wrong i will unload it before i lose a dime...that includes a 1% over cost commission and shipping [free for me].:)
CJ,
If you don't like stocks, then you should put you money where your paranoia is and be Shorting the shit out of GM, Ford, PlacerDome, Barrick, and the S&P500. Nobody says you have to be on the Long side of a stock investment. I have made good money on the Short side of the Market as on the Long side. (Longer term, the Long side is always better, but for some periods of irrational exuberance, the Short side can be profitable.)

Gold as an investment has problems in that it costs to store (see T-Bone's expenses of digging a hole in his basement), it pays no return, no income, no dividend, etc... and it has high transaction costs as CJ showed.

As for your "can't lose" because you now hold the asset at a higher price than you bought it at, that is strange logic. Every day when you hold an investment, you should ask if this is the best investment for these funds. If it is, you hold, if not, you sell and exchange into a better investment. If you think gold will continue up from here, then you should be buying more, borrowing to buy more, buying Gold Futures, mortgaging the house, etc.. etc...

But, to each their own, and you might as well keep "smellin'" if that is what works for you.

Hey CJ, just a quick question, of the two richest guys in the US, which one made his billions buy buying Gold???
 

danr55

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Moosie, Ask anyone who was in the real estate market in the 70's anywhere or in California in the early 90's about losing money in real estate. It's not hard. All it takes is a huge market swing like those that take place when the fed rate goes to 15% or California changes it's real estates laws and you have a mass migration. Lots of people lost money.

:cool:
 
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