|
Gold
Feb 1, 2011 13:26:20 GMT -5
Post by tea4me on Feb 1, 2011 13:26:20 GMT -5
Do you think the price of gold will start decreasing? Is so, when?
I inherited some gold coins and I bought stock in Gold Corp. I am wondering if I should ever sell these things.
|
|
|
Gold
Feb 1, 2011 13:32:53 GMT -5
Post by Savoir Faire-Demogague in NJ on Feb 1, 2011 13:32:53 GMT -5
Do you think the price of gold will start decreasing? Is so, when?
Yes it will.
Next question, will the price of gold rise. Answer: yes it will.
|
|
|
Gold
Feb 1, 2011 13:35:19 GMT -5
Post by tea4me on Feb 1, 2011 13:35:19 GMT -5
What do you think would provoke it when the price declines?
I can understand (sometimes) when stock prices increase and decrease, but not gold.
|
|
stats45
Established Member
Joined: Dec 27, 2010 16:52:12 GMT -5
Posts: 415
|
Gold
Feb 1, 2011 13:55:01 GMT -5
Post by stats45 on Feb 1, 2011 13:55:01 GMT -5
The value of anything is subjective to some degree. This is oversimplified, but it may help a bit.
Gold has commercial and industrial uses. Gold jewelry, gold electronic wiring...whatever. This represents people buying gold to use in the physical production of goods.
In addition, investors use gold as a hedge against inflation. Because of its status as a desirable commodity (see above) and its historical reputation, many people buy gold to hedge against risks like high inflation, low economic growth, or uncertainty. Investors buying gold for this reason are the main cause of gold prices peaking and falling. Look at the instability of gold prices in the last 40 years. This means that as soon as people are more satisfied with the economy, gold prices will drop.
There is no 'objective' reason why the price of any commodity should be any price or always go up. It all depends on consumer demand and investor attitudes and sentiments that reflect market expectations. Unless you believe that the economy will never recover and that large numbers of investors will be afraid to move the 'gold' portion of their assets elsewhere, it is not good to bet on gold long-term.
There is tremendous potential for profit-taking in the short-term, but much of that has alreayd passed.
|
|
Deleted
Joined: May 6, 2024 12:33:47 GMT -5
Posts: 0
|
Gold
Feb 1, 2011 13:56:46 GMT -5
Post by Deleted on Feb 1, 2011 13:56:46 GMT -5
I just sold a pile of gold and other precious metal ETFs. No scientific analysis behind it; I'd just made a nice profit in the last year and my advisor and I decided it was time to sell. Nobody ever went broke taking profits.
Not sure about the gold coins- to me that's a different case, especially if you paid a high premium over the intrinsic value of the metal. I have an Austrian gold ducat that my Dad smuggled in from a business trip in the 1970s when Americans weren't permitted to own gold. I wear it as jewelry and according to e-Bay the coin is worth $200. It's not for sale.
|
|
Deleted
Joined: May 6, 2024 12:33:47 GMT -5
Posts: 0
|
Gold
Feb 2, 2011 1:24:19 GMT -5
Post by Deleted on Feb 2, 2011 1:24:19 GMT -5
I think Gold will stay up a little longer as the revolution in Egypt transitions itself. A lot of folks are nervous about it but I am pleasantly surprised our stock market seems to have rebounded so quickly.
I think like any question about your investments you need to look at your situation holistically. My first concern would be that the gold holdings are taking capital away from better, long term investments. I'm not a big fan of gold. It does tie up your capital without any kind of return and you may need to actually pay to store it, insure it et cetera. If you were in a different country and worried about getting your money out my answer would be different.
Gold mining stocks are a different animal. They really should be making money vs the speculation that they hold gold reserves. Many of them don't so be sure you understand what you bought.
.
|
|
busymom
Distinguished Associate
Why is the rum always gone? Oh...that's why.
Joined: Dec 25, 2010 21:09:36 GMT -5
Posts: 28,406
Mini-Profile Background: {"image":"https://cdn.nickpic.host/images/IPauJ5.jpg","color":""}
Mini-Profile Name Color: 0D317F
Mini-Profile Text Color: 0D317F
|
Gold
Feb 2, 2011 8:44:12 GMT -5
Post by busymom on Feb 2, 2011 8:44:12 GMT -5
If you have the opportunity to take some profit on your gold, I would consider selling soon. IMHO I think the current gold market closely resembles the housing bubble (remember when no one thought the price of houses would EVER come down!) It's just a matter of time before gold prices moderate--it's just there is high demand right now.
|
|
Deleted
Joined: May 6, 2024 12:33:47 GMT -5
Posts: 0
|
Gold
Feb 2, 2011 11:59:26 GMT -5
Post by Deleted on Feb 2, 2011 11:59:26 GMT -5
I do recommend gathering up any gold "scraps" you have. DH had a couple of wedding bands(married twice before) and I had earrings where one had been lost, another pair that, unfortunately, was useless after I accidentally ran the vacuum over one on the floor, and a gold chain that was so light and flimsy I never used it. We had a kitchen scale so I could weigh it all and then get some on-line quotes. I took it all to a local jeweler where they offered about the same. It was $200 worth, and made a nice dent in the cost of re-designing a pearl necklace I brought in.
|
|
hsclassic
Junior Member
Joined: Jan 4, 2011 8:15:12 GMT -5
Posts: 199
|
Gold
Feb 2, 2011 12:14:28 GMT -5
Post by hsclassic on Feb 2, 2011 12:14:28 GMT -5
Yes, the price will go down at some point in time. When? Nobody knows. A good investor will take their profits when the appreciation has met their goals, unless there is a very compelling reason to hold the investment for a longer period of time. If your crystal ball tells you to hold on, then do so. If your crystal ball is cloudy (like most everyone's), then take your profit when your investment has met your goal.
|
|
verrip1
Senior Member
Joined: Dec 20, 2010 13:41:19 GMT -5
Posts: 2,992
|
Gold
Feb 2, 2011 12:25:30 GMT -5
Post by verrip1 on Feb 2, 2011 12:25:30 GMT -5
Do you think the price of gold will start decreasing? Is so, when? Uh, now. Gold is down ~6% year to date, and even the North African rioting has not stopped the downward trend. How much lower? Who knows?
|
|
sesfw
Junior Associate
Today is the first day of the rest of my life
Joined: Dec 21, 2010 15:45:17 GMT -5
Posts: 6,268
|
Gold
Feb 2, 2011 23:23:46 GMT -5
Post by sesfw on Feb 2, 2011 23:23:46 GMT -5
I would hold the inherited coins for future generations unless my financial situation precludes this.
If you have made a profit on the stock to your satisfaction I would sell them. The price of anything is very dependent on what someone else is willing to pay for it.
|
|