What about Gold

I think that there are too many people toughting gold as going higher that it makes me think that they actually see it as dropping soon and they wish to increase the pool of demand (buyers) so that it will remain higher, longer, till they can sell their holdings at maximum profit.

I do think this "advertising" will make the price go even higher for a little while before the ultimate fall.

Take advantage of the upcomming bump, but do not stay there as dim times are comming.

Edited: 06/26/2010 at 12:13PM

Larry Moore

Real Estate Investor · Belvidere, Illinois

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Mar 26 '10, 01:07 AM

What is it they say about an investment, that by the time the General Public hears about it, it is already too late?

Edited: 06/26/2010 at 12:13PM

Shanti S.

· Western, Massachusetts

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Mar 26 '10, 01:23 AM

Gold is not an investment it's an inflation hedge / form of cash. But the prices are vulnerable to manipulation just like the stock market, plus it doesn't have any of the investing advantages of real estate - leverage, tax benefits, personal control.....

Edited: 06/26/2010 at 12:13PM

Tim W.

Real Estate Investor · Indiana, Indiana

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Mar 26 '10, 10:36 AM

I had a long conversation with a commodities investor yesterday. Gold and silver have gotten to the point where they are not acting inversely to the stock market so it's not the same game anymore. He tells me you have to think of gold and silver as just any other commodity now based on how they're behaving in the market currently.

Silver is at 16 an ounce. Historically it should be 70-80 right now. The electronics manufacturers are working heavily to keep it down so it doesn't increase their production costs but still....you never buy something at the peak of it's value and gold is at the peak of it's value, imho. The only way to increase the value of gold is through the decrease of the value of the dollar...but frankly you'll get that advantage with silver too but at a substantial discount.

Edited: 06/26/2010 at 12:14PM by Tim W.

P NW

· OR

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Mar 26 '10, 04:27 PM

My opinion is that the ship has already sailed.

If you are thinking that the road warriors are going to burn your house down, gold coins are portable. If you are just thinking of an investment, you'd be buying high. That's not the best way to invest.

Edited: 06/26/2010 at 12:14PM

NC Mark

Real Estate Investor · North Carolina

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Mar 26 '10, 09:56 PM

I like gold as a hedge against the inevitable (IMO) decline of the dollar. For me it's like most any other commodity that should gain value as emerging countries compete over increasingly scarce resources.

Bullion (coins) is another matter as one pays a premium over spot (plus state sales tax in places). But it's easier to store in a safe deposit box compared to a barrel of oil.

Edited: 06/26/2010 at 12:14PM

Rich Weese

Real Estate Investor · sioux falls, South Dakota

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Mar 26 '10, 10:31 PM

Drone- I don't think gold is manipulative. The Hunt brothers did try to manipulate the silvers market decades ago, and came close. Gold is another story

Tim- I like silver better also, but DANG bulky. $1000 in "junk silver coins" (pre 64 905 silver) weighs nearly 55 pounds! And you need 2 bank bags to hold them! Not easy to hide from the street warriors.

I like both and believe BOTH will go higher. I purchase regularly to "cost average". Rich.

Edited: 06/26/2010 at 12:14PM

Tim W.

Real Estate Investor · Indiana, Indiana

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Mar 27 '10, 02:22 AM

If it gets to the point of road warriors silver won't matter except as something to melt down for bullets. I hear you on the heavy part. That's were a fireproof basement gun safe comes in handy. Don't tell anyone your combo. I know a guy who's wife decided to split and took all the silver with her. Had a ball trying to document the existence and value of what she took.

Edited: 06/26/2010 at 12:14PM by Tim W.