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Is gold still worth investing in?


MacDuck
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Hello everyone,

 

Is gold still worth investing in? Just received a call from my relationship manager and she was introducing me to a investment product linked to gold prices.

 

Ain't the current trend a little strange? In past, gold prices soar when USD weakens and vice versa, but this seems not to be the case now?

 

 

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I would say no, and I'm already invested in Gold! But I got in when Gold was at about $700 late last year.

 

If you buy now, you're buying in at a high, similar to buying property in 2007/2008 when they were at sky high prices. I'm monitoring the gold charts closely now to exit, the last time Gold hit these levels, in March last year, it went back down to $850/oz in about 6 or 7 weeks, a lot of people were hit by this cos at the time, every analyst was predicting Gold will hit $2000, oil will hit $200 etc etc...

 

Now, we have the same analysts calling for Gold at $1500/oz, so time to be on your toes! Anyway, that's just my thoughts, I could well be wrong, I'm not an economist nor am I a professionally trained trader.

Edited by Carndablues
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Neutral Newbie

Not really worth IMO...

 

you already missed the boat.

 

as pointed out by some bros, upside not good enough. Gold spot price nw standing at around USD967.

 

Factor in your brokerage charge and all, not really worth taking the risk.

 

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And one more thing....in SGD terms, the price of gold now, is actually more expensive than in March of 2008 when gold hit the all time record of USD$1033.

 

To buy 1 oz of gold in March 08 was about SGD$1585, as of today, with the price of gold at USD$960, in SGD terms, it is about SGD$1636....go figure!

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Hello everyone,

 

Is gold still worth investing in? Just received a call from my relationship manager and she was introducing me to a investment product linked to gold prices.

 

Ain't the current trend a little strange? In past, gold prices soar when USD weakens and vice versa, but this seems not to be the case now?

Probably not call a investment. It is more of a speculation as these stuff has got only perceived value. Traders in the west create these trading as Casino licence is harder to obtain.

 

A year back, everyone was talking about crude oil prices hitting USD200 a barrel as the world is running short and demand is overwhelming. So what is oil price today and where are those who says oil prices will hit USD200/barrel?

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I don't know what safe haven means....safest haven is probably with Obama in his nuclear bunker!

 

I foresee a collapse in the USD which will mean a jump in Gold (usually) but this also means if the SGD appreciates against the USD, your returns won't be as great (eg. if Gold jumps by 10% in USD terms, but SGD appreciates 10% against the USD, you are no richer!)

 

I'm just a trader, I am in and out when my own analysis tells me to go in and out (I'm talking about trading here. not sex!)

 

I don't believe what analysts say, only cos half the time I don't understand what they're saying!

 

So if someone tells me gold is a safe haven, I take a look at the charts and if I agree, I buy, if I don't, I just sit back and watch....

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Gold prices have come down a fair bit in the last week, I've already received my exit signal.

 

But there is a support line approaching, time to watch closely.

 

Has your relationship manager called you up recently or does s/he only wait until the price goes up?

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Big drop for Gold over the last two days, below $900 an ounce now.

 

For those who have a religious belief in Gold being a "safe haven", hold off a bit, we're in support territory now, if it breaches 880, expect a move down towards 830 and later 800.

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Sorry forgot to mention, you should ask your relationship manager for any products in Oil....support is at hand...and let's face it, there will ALWAYS be demand for oil!

 

Hi

What are the most direct "investment" for oil? And accessible to layman? tks

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There are various funds available out there for Oil, but I trade commodities on the various future exchanges.

 

You can get in touch with someone from funds supermart, they might know.

 

Or ask your "insurance salesman", although mine had very little knowledge of such instruments, guess that's also why I purchase "very little" products from him!

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Regarding gold :-

 

Before anyone jumps in, plse understand this :-

 

there are a few types of demand but for simplicity sake here, i highlight the two major demand for gold.

 

1. Real physical demand (Consumer, Jewelry)

2. Speculative demand (trading, opportunistic)

 

Real demand largely comes from India.

That has fallen to basically zero.

Understandable when economies are so battered.

Where even food is an issue, who cares about gold?

 

Speculative demand is what is driving Gold prices high and higher over the last 10 months.

 

So be careful when an asset price balloons largely on speculative demand.

(eg. Gold, Property in singapore)

Prices can come down very very quickly when not supported by real demand.

 

First tip in the rulebook: Never invest what you cant afford to lose.

 

 

 

 

 

 

 

 

 

 

 

 

 

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I don't know what safe haven means....safest haven is probably with Obama in his nuclear bunker!

 

I foresee a collapse in the USD which will mean a jump in Gold (usually) but this also means if the SGD appreciates against the USD, your returns won't be as great (eg. if Gold jumps by 10% in USD terms, but SGD appreciates 10% against the USD, you are no richer!)

 

I'm just a trader, I am in and out when my own analysis tells me to go in and out (I'm talking about trading here. not sex!)

 

I don't believe what analysts say, only cos half the time I don't understand what they're saying!

 

So if someone tells me gold is a safe haven, I take a look at the charts and if I agree, I buy, if I don't, I just sit back and watch....

 

 

Yes, thats good.

 

sometimes people mix up trading with long term investing.

 

 

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Yes, thats good.

 

sometimes people mix up trading with long term investing.

 

Actually, I told a half-truth there in my initial statement, I also short Gold, and have been doing so since last week, three days after I had exited my long position in fact!

 

I'm up about 70% from my initial investment on this short alone, Gold is not manipulated, it just look like it's highly speculated!

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Supercharged

Hello everyone,

 

Is gold still worth investing in? Just received a call from my relationship manager and she was introducing me to a investment product linked to gold prices.

 

Ain't the current trend a little strange? In past, gold prices soar when USD weakens and vice versa, but this seems not to be the case now?

 

Gold is still relatively cheap. I have been buying gold when it was at $300 and even at today's prices, it is not expensive.

 

Looking at the investment landscape now, there would probably be a rebound in the stock market for 6 months or so. Gold will come under pressure during this 6 months but I think it still good to diversify your investment into gold whenever it pulls back to its 50 days moving average.

 

Whatever recession you see now is just the beginning. This is going to be a really severe depression that most would have never seen before. When this whole thing is done and dusted roughly around 2012, even gold would have been abandon by most people but it's still probably one of the better investments compare to the rest like stocks or funds.

 

Just don't go gold crazy. Save hard and be extremely frugal for these few years.

 

 

 

 

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