Would you buy gold now?

Peter said:
Gold is the price it is because present market forces have made it that price.
How can it be overpriced?

Because you have silver?
Because your choice of silver would be shown to be incorrect otherwise.
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Isn't it obvious that 'overpriced' is used on a term that is longer than a moment/day?
Gold was $1900 on 22 august 2011 and 5 september 2011.
Your 'present market forces' (actually some people making bad decisions for themselves and good decisions for others) brought that price.
The subject is not the price mechanism. The subject is the present price relative to an average price over a period.
 
TreasureHunter said:
The decrease of industrial production is no guarantee silver will go down.
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It's much more than 'no guarantee', silvers average price quadrupled over the past decade-now, and unless someone can show me industrial production silver demand rose that way too, industrial production was just a minor element.

About gold:
Net Government Sales (positive means it's [SUPPLY], negative means it's [DEMAND])
1997 326 <- selling away higher prices when we don't want to buy
1998 363
1999 477
2000 479
2001 520
2002 547
2003 620
2004 479
2005 663
2006 370
2007 484
2008 236
2009 30
2010 77
2011 -455 <- buying away lower prices when we want to buy
2012 -544.1
2013 -368.6

Recycling
1997 631
1998 1108
1999 620
2000 619
2001 749
2002 872
2003 985
2004 878
2005 897
2006 1126
2007 956
2008 1217
2009 1672 <- recycling +100% (silver only +25%) probably due to gold stocks being way bigger than price ratio suggests.
2010 1653
2011 1611.9
2012 1590.8
2013 1371.4

ETFs and similar products
1997 0
1998 0
1999 0
2000 0
2001 0
2002 3
2003 39
2004 133
2005 208
2006 260
2007 253
2008 321
2009 617
2010 367.7
2011 154.0
2012 279.1 <- accumulated to 2634.8
2013 -880.8 <- 1/3 dumped, 2/3 to go (silver ETFs held their stock so 3/3 to go)

Yes, silvers price is more volatile. More people making bad decisions, and others taking advantage of it, to then draining off the money away to for ex the gold market.
That's why it is so important to be very cautious when deciding silver purchase moments. If people would, the price would stabilize more, and alot more money may stay.
 
Andyt said:
Yes, just bought some.
Gold seems more addictive than silver. Easier to hide from the missus
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Agreed 100%. I don't really hide mine from her, she just doesn't show any interest in my "coin collection" and I don't volunteer information. Seems like a win win:)
 
dccpa said:
Jislizard said:
Peter said:
Many people here think there's going to be a crash.If this happens gold will, after a while, rise.
Silver will probably fall.
G/s=?,200/1,300/1?
It's not a usual decade.
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Governments and banks for sure won't want a crash unless it serves their purposes.
These sure are interesting times :)

But if the Gold to Silver ratio does go through the roof I hope I have enough gold left to exchange it for silver (I will keep my coins though)
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They didn't want the 2008/9 crash either, but it happened. I believe the GS ratio got to around 80-1 at the low point. Unfortunately I was new to lunars at the time and turned down 2009 lunar ox typesets at $16/coin because I listened to people who said the Ox coins would never be worth much. :rolleyes:

Having gold is good, but so is having cash to take advantage of opportunities that can come along during a crisis.
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In a crash I think that gold will go down at first.
Good to buy then.
Thats the best option.
But will it be available (I think so)
Where to to hold the cash while waiting?
Maybe the bank will no longer have it.
 
DCA
so YES
same date, every month
some days I get more, some days I get less
It all works out in the end
 
Yep - price is stable @ ~$1300USD, however as valuecreator alluded to - look for long term stability and realistic growth that is ANNUAL (sorry for the caps).
Theses are single figure percentages @~5% (annual growth factor).

Unless your are betting on another GFC - don't get your hopes up.
(And IMO I don't think that wars of any kind other than total obliteration will effect the price of gold significantly).

<disclaimer>
IMO
</disclaimer>
 
TreasureHunter said:
Why Sovereigns? For numismatic reasons?
I'm curious about your choice.

I'd buy pure gold coins like the Maples or Buffaloes.
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I started out only buying Pure gold Britannia's ( No Capitol Gains Tax ) then bought 1 2013 sovereign.
Bad move ;)

I got interested in Mint marks and different designs.
I now have quite a collection, with some rare coins as well.
Earliest so far is an 1842 shield.
And
1909 Canada
1856 Sydney half sov
1867 Sydney full sov
1989 4 coin proof set
1984 quinty PROOF
etc,etc

But..

I only buy old sovereign's generally (pre 1930).
Dare I say it........... I don't trust the modern day ones, too copper looking for me

So, I suppose I buy 'em for the numismatic value, as well as the gold content.
And they look sweet when all laid out together (very rarely)


But, I may well but a couple of Britannia's today, as no interesting sovs around ATM.
I try not to buy coins other than UK issue, as they would incur CGT when sold, and also, maybe.......... induce collecting fever.

I'm under no illusions with the sovs, some are common dates, bought for normal price.
These would get sold if conditions/circumstances dictated.
The rare ones I'll keep till I'm old and grey (2014 1/4 oz proof 25th anniversary Kangaroo anyone ???) :D
Sort of a pension plan no bank/government can meddle with ;)

Everything I buy is as an investment.
I own the coins, they don't own me.
 
Peter said:
Where to to hold the cash while waiting?
Maybe the bank will no longer have it.
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Or 'locked' until further notice.
I have family here that has 6000 euro locked since october 2011. There are 800.000 others in the same situation.
 
Pirocco said:
Peter said:
Where to to hold the cash while waiting?
Maybe the bank will no longer have it.
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Or 'locked' until further notice.
I have family here that has 6000 euro locked since october 2011. There are 800.000 others in the same situation.
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What do you mean by 'locked' pirocco? Like they cannot withdraw from the bank?
 
Jimmy1986 said:
Pirocco said:
Peter said:
Where to to hold the cash while waiting?
Maybe the bank will no longer have it.
Click to expand...
Or 'locked' until further notice.
I have family here that has 6000 euro locked since october 2011. There are 800.000 others in the same situation.
Click to expand...


What do you mean by 'locked' pirocco? Like they cannot withdraw from the bank?
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Yes, it's 'freezed'. Basically it was promoted as a savings account, with state guarantee / no risk.
In reality, it was a shares-alike system, so called used only for 'local economy' and 'social' projects, and heavily promoted/benefitted by a political chain.
However, during the 2008 crisis, they used the money 'behind the scenes' to rescue a system bank, one where State departments (including towns, villages) parked their money.
Late 2011, the second EU crisis, the system bank still failed in the end, and the central planners (in the name of the local country ofc) took it over (read: bail it out), the very day of the year that the ability for the cooperative shares holders / account holders to withdraw their money, ended. In order to allow the local politician to get away with it (in the face of the public), the EU central planning level intervened, and 'suspend' (ofc they were happy to be forbidden) state guarantee. The EU legal case lasted a couple years and, very predictable, only some month after the countries local elections passed, the EU level forbade state guarantee.
Yet, it's still 'not sure', according to local policians. That's what they do: putting things on the long term. By the time the story finally ends, most people will already have gotten used to the idea of having lost the money. And that was their very goal from the beginning.
 
Yes, but I like gold. I buy gold because I like buying gold and I like owning gold not for capital gains. If I have capital gains that's even better.
 
If I earned more I would buy more gold instead of silver.
That said my favorite metal is platinum and if you ever worked with it you would know why.
But I agree gold properly finished bullion coins and proofs are pretty awesome - especially those stuck by PM.
But being pastey and all - metals of the white kind look better on me as far as jewelry is concerned.
 
Brzt said:
Yes, but I like gold. I buy gold because I like buying gold and I like owning gold not for capital gains. If I have capital gains that's even better.
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You can have great capital gains with the price oscillations - provided that you bought low enough ;)
 
pastey said:
If I earned more I would buy more gold instead of silver.
That said my favorite metal is platinum and if you ever worked with it you would know why.
But I agree gold properly finished bullion coins and proofs are pretty awesome - especially those stuck by PM.
But being pastey and all - metals of the white kind look better on me as far as jewelry is concerned.
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Why not shout it out loud: why if platinum your favourite?
 
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