According to a columnist of Morningstar, gold has further to fall from its current lows and is not seen as a good investment. This causes great concern because all the fundamentals over the past few years recommending gold as a safe, solid investment / insurance etc have not really changed. Difficult to know what do do nowadays - hold or buy more ? Definitely not sell as losses are temporary I assume .... BUT .... which crystal ball to gaze into ! Here's the link - http://www.morningstar.co.uk/uk/news/119730/sector-outlook-retailers-banking-housebuilders-gold.aspx
Civil war in Syria South Sudan on the brink of civil war. Egypt on the brink of civil war. Tensions between Turkey and Syria Tensions between China and Japan. Tensions between North and South Korea Arabs spending billions of dollars on weapons (And there's been talk of Nukes) Russian's supporting drilling for oil off the Syrian coast. Threats of not paying for oil in USD (Petro dollar could be challenged) Quantative Easing that is manipulating the stockmarket. Cheap / low interest rates causing artificial market conditions. A stockmarket that has reached highs and looks like going higher. A manipulated gold market. A manipulated gold market to make the USD "look" strong. China buying gold. India buying silver and placing restraints on gold imports. European VAT on precious metal. USA can't pay their bills and can't pay their workers unless the debt ceiling is raised. The UK is printing money. The Japs are printing money. The FED is printing money. Currency wars ^^^ Ireland is broke. Portugal is broke. Italy is broke. Greece is broke. Spain is broke. The USA is broke! The USA won't give Germany their gold back! The Ten Year Treasury Note has breached 3% I think I'll keep stacking thanks...err...gold and guns!
So what have reason and logic have to do with the Financial market these days. The stock market rose sharply last year! ! Gold is the enemy of all those who manipulate value. I.e currency. They will do anything they can to prevent its use as a alternative.
Buying Gold or PM's in general is not the problem, in the long run you will perhaps triple or more your gains(4-7years). Your problem will be what will the cash strapped government do with your stash?
There'll be a windfall tax on it when you sell - that'd be much cheaper to implement than an outright confiscation and it can cover offshore holdings just by saying it does. James Rickard guesses a 90% margin tax, which would be a real downer. We'll see.
And the boyo's over at Yahoo! Finance are predicting a bear market for the next 18 years... Oh fiddlesticks. http://finance.yahoo.com/blogs/breakout/avoid-gold--the-last-correction-took-20-years-182148974.html
Would it matter if I'm collecting only semi-numis like pandas? They're rather independent from spot price.
Yeah, this is a pretty good approach I reckon, although we will see how this fares for pandas post 2011, after the production was ramped up. Still, when spot moves from $40 to $25, all things metal get dragged along more or less, but I certainly agree this is a good approach. The major issue for this - as a life long stacking savings approach - would be the practicalities (and risks!!) around storage, unless stacking gold.
As far as I can tell is the stock market, RE, finances from banks ie mortgages and rates AND pm's are ALL being manipulated to keep the USD 'Numero Uno'!
I can see this happening only if 'everybody' is buying or has bought. Statistically speaking almost no one owns Gold of any real amount so I don't see the Government going after the Gold hoarders. They might increase in Australia the capital gains amount payable although 90% would be too excessive. That's the question though, who knows.
I just watched this, up to the 57sec mark all is good and then like a brick in water. The ridiculous assertion that because the last bear market lasted 20 years so will the current one, amazing.
Wouldn't you already have set aside an emergency fund? I feel you should only spend part of your disposable income on PMs, and not your entire savings.
