Zowie! The price of gold is over 1300.00 per ounce with no signs of it slowing down. Gold coins, jewelry, stocks, boulion.....anyone care to discuss?
Never purchase jewelry as an investment most of the cost is in the design not the gold.
Gold has been touted as an investment over the years but is one of the things that the investor pays more than the gold object is worth in the chance it will go up. Similar to other investments but more risky. Risky because you never really know if what you are buying is what you are being told it is. Very easy to apply a coating on an object of the right weight and state that it is solid.
Gold has always seemed to me in over thirty years of investing as a good way to make money...if you're the one who is selling it to investors. If you really think it will be on a continuing upward trend, invest in gold mining mutual funds.
Of all the things Glen Beck doesn't know anything about, Gold has to be right up there.
Gold is a hedge style "investment". Basically, when everything else tanks, gold does well. When everything else does well, gold tanks. In the long run though, most of other investments do relatively well, so gold spends most of its time tanking.
As a general investing rule, you make money by "buying low and selling high." If someone tells you that a company/product is at an all time high and "shows no signs of slowing down", that is generally the worst possible time to buy.
Currently, is there any real recovery in economy afoot? America is a country in decline. My relatives who lived through the depression used to say "Gold is your best friend." However, I bet the Fed won't let it go to say, $4000.00 per ounce. Interesting to watch though!
"Currently, is there any real recovery in economy afoot?"
Yes, yes there is. The economy has been growing for a while now. Like in every previous recession, job growth is lagging overall economic growth.
BTW - If your relatives really held that as an investment strategy their whole lives, they would have died broke.
Assuming they were old enough to buy gold before the Great Depression - born around 1910. Gold was $19/oz. They could have held it for 60 years and it would have been worth a whopping $36/oz in 1970. Total inflation during that period was 280%. Their "investment" wouldn't even keep up with inflation. With a "best friend" like that, who needs enemies.
The Fed has nothing to do with the price of gold, and can't really affect it in any meaningful way.
You could have bought Google at $84/share at its IPO in 2004. It closed today at $615.
In 2003, Apple stock was $6/share on a split-adjusted basis. It closed today at $304.
People have been laughing at the very idea of owning gold for close to 10 years now.
These could be different times, now. A purchase of gold is a bet on that.
In past few days, the Fed announced that they are printing another boatload of "money".
Everytime time I have purchased the stuff, it felt like I was buying at all time, crazy highs....and it continues upward.
If there is ever a gold (or silver) buying frenzy (and it is not here yet by any stretch), it could go much higher.
I am the only person that I know who owns the stuff. I'd love to have more, but I never take my own advice...so I have a modest amount of metals.
My understanding is the Fed is not printing the stimulus money. It's digital! So, it's not even worth the paper it's not printed on!!! How insane is that?
For those that are holding gold. Test your products value by taking it to a place that is buying gold and ask how much they are willing to purchase it for. You might be surprised how quickly your pot of gold turns into pot of half price.
I think you nailed it maifleur!
But for those who still want a little more convincing, here is what the investment gurus at Motley Fool had to say about gold recently...
Here is a link that might be useful: Motley Fool - Gold
"I am the only person that I know who owns the stuff. I'd love to have more, but I never take my own advice...so I have a modest amount of metals."
We have a modest amount of gold as well. 10% of our portfolio. We had thought of buying more but decided against it. Fortunately it has increased 75% since we purchased it. When it does doubles (what we paid), we will sell half.
I don't think it will be long before this happens.
The easy monay has already been made in gold. Now it's time to stay away. If you have some odd gold jewelry like mismatched earings and such, now is a good time to sell, because it worth only the value of the amount of gold it contains.