Anyone buying Gold?

[e8_pack]

I bought some gold in 2009 @ 750/oz and silver at 500/kilo, then sold it shortly afterwards.. yes i bought it because i knew it would go higher but not being a betting man i couldnt bear it out!

Well, i was thinking of a £1500 entry but it seems to have gone up again what with this euro business going on, maybe they will hit some stability intime for gold to fall again before the euro drops off the cliff, i actually thought we would see the dollar crash first..

so is anyone buying gold? is now a good time?

[moreflaps]

contango said:

There is quite a lot of froth at these prices, for it to go higher you are basically betting on the euro or fiat monetary system in general to fail...so much more of a punt than a value trade. Worth buying against the 240 day ma if you must, watch for key reversal close to get out as we could have a real flush out of weak position on speculative good news on Euro....Miners are lagging so maybe consider buying their stox of you can live with the p/e?

Translation: "Maybe, maybe not"

Cheers

[e8_pack]

contango said:

There is quite a lot of froth at these prices, for it to go higher you are basically betting on the euro or fiat monetary system in general to fail...so much more of a punt than a value trade. Worth buying against the 240 day ma if you must, watch for key reversal close to get out as we could have a real flush out of weak position on speculative good news on Euro....Miners are lagging so maybe consider buying their stox of you can live with the p/e?

hmm, baffled with bullst, exactly why i don't use a broker.

[66comanche]

Who wants to be the one that buys at the top? Even if you get some profit, it's likely to be marginal especially compared to the risk of it falling to $1000 (unlikely, but still).

Can Lloyds fall much further? Is the FTSE realistic at 5500-5600? Plenty of tempting prospects there, gold isn't one for me.

[e8_pack]

my view has been a little more simplistic, looking at the enormous debt and the possibility of a looming currency crisis, i felt that gold would be a good hedge at the inevitable inflation from the QE at the time.

Now we have more QE in an even more volatile market, maybe i should start researching market trends, as you have pointed out the moving average and US financial year end, neither of which i had considered.

My biggest worry is the cash in the bank being eroded by inflation, hence the obvious hedge against it - probably a common thought amongst the less market astute such as myself.

Thanks for taking the time to explain.

[B'stard Child]

Never been a colour I liked on a car

[ringram]

If you want to hedge against inflation what about the Tesco RPI indexed bonds!? Biff them into a SIPP or ISA and off you go.
Sure tesco might fail, but if it did there would be more to worry about than a few RPI bonds.
RBS has some 2% + RPI hanging around, but RBS is more dodgy.

That would be the safer bet IMO. RPI indexed bonds in a tax wrapper. Also the downside is limited because you are guaranteed par at maturity even if RPI is negative.

[14-7]

I picked up a few Kruggerands about 4 years ago and bought another 2 last month.

Definitely worth having as far as I'm concerned if you want to diversify a bit.

Whether or not you class that sort of thing as an investment I suppose is down to the individual.

[turboslam]

always remember the golden rule "he who has the gold makes all the rules"and at the end thats the only rule

[e8_pack]

wow, memories, takes me back to when i first watched Denis Tinerino backstage talking to Samir at the 1980 Mr O on one of Arnies comeback vids.

"Remember the golden rule, he who has the gold makes the rules"

I bet they thought those days would never end. Happy days.

[turboslam]

for some maybe they ended for others thay have only just begun