Is It Too Late To Buy Gold?

Discussion in 'Commodities Forum' started by longtermbull, Nov 7, 2016.

  1. longtermbull

    longtermbull Administrator Staff Member

    Joined:
    Nov 2016
    Posts:
    1,649
    Likes Received:
    20
    Always a nice hedge in times of trouble. As the recent US wobble was brought on by concerns about a short term spike in inflation, could you argue now might be the time to look at gold? I see the price has been creeping higher recently.
     
  2. Chartman

    Chartman Senior Investor

    Joined:
    Sep 2017
    Posts:
    616
    Likes Received:
    8
    Gold is starting to move towards new recent highs - I would have thought gold would have been more in demand months ago when markets were moving too far too quickly. Perhaps we are suffering from the herd mentality and now the herd is moving towards gold?
     
  3. JR Ewing

    JR Ewing Super Moderator Staff Member

    Joined:
    Feb 2014
    Posts:
    4,950
    Likes Received:
    39
    One thing about commodities and commodities-linked investments is that trend following often tends to be quite effective for relatively long periods of time.

    You can be a contrarian and do quite well buying and selling stocks that trade in pretty tight channels on lots of volume with very tight spreads. But with commodities, it seems as though the dip often keeps dipping lower and lower for a period of time, and the rallies often keep going up for quite some time.

    "The trend is your friend. Until the end." seems to often apply to commodities... Of course look out for the end.
     
  4. Buyonthedips

    Buyonthedips Senior Investor

    Joined:
    Feb 2018
    Posts:
    412
    Likes Received:
    1
    It would be interesting to learn how many commodity purchases are actually used in business or simply for investment returns. There is a degree of influence from the business community so if for example the price of oil was creeping higher then companies would likely look at forward buying their future supply to secure availability. While gold and oil tend to grab the headlines, there are a lot more commodities you can trade if you do a little research.
     
  5. manoharb

    manoharb Senior Investor

    Joined:
    May 2015
    Posts:
    281
    Likes Received:
    2
    EURUSD can show downfall upto 1.1200-1.1000 below 1.1800, Which is indicating Dollar Index can reach 92-93 short-term.

    So opinion about Gold , If you are buying Gold then keep sl. of 1290$ for mid-term. If reached below 1290$ possible Gold will touch 1205$ target. Sell Gold above 1346$ again and again Buy near 1300$, sell above 1346$ sl. 1290$. Mid-term
     
  6. longtermbull

    longtermbull Administrator Staff Member

    Joined:
    Nov 2016
    Posts:
    1,649
    Likes Received:
    20
    I would only be a strong buyer of gold if equity markets pushed ahead too far and there was a sell-off in the price of gold. I just cannot believe the US economy will deliver what some investors expect and there seems to be more political turmoil on the horizon. Uncertainty is not good for investment markets.
     
  7. manoharb

    manoharb Senior Investor

    Joined:
    May 2015
    Posts:
    281
    Likes Received:
    2
    If we checked, Increasing/Declining Forex Reserves of Asian countries and Russia. My opinion is Demand for Gold is not increasing as expected. 'Polarized Nationalism' This is the Political reason behind it and uncertainty as well If we checked another side of Coin, No change in ECB interest rates. In 2015 , Jannet Yellen said, Until 2018 US interest rates target is 3.3775% but still FED interest rates are 1.50%.

    expected, 1-1.5% interest rate cuts from Russia and 0.75% rate cuts by Brazil. Emerging nations have own role in markets.

    Technically, Due Gold have limited trading range of 1200-1400$, Global Equity markets sentiments are bullish. Normal corrections will come time to time but 'Buy in Dips' is the best strategy for investors in equity markets.

    April 2018- June 2018 this quarterly period is important for Gold. I think Gold pattern will get clear in this period. I will post updates. India is second biggest importer of Gold, I think , In my country, Gold Loan schemes needs a boost.
     
  8. DanielH

    DanielH Active Member

    Joined:
    Mar 2018
    Posts:
    39
    Likes Received:
    0
    You know the expression: "Get in, strap down, shut up, hang on!" For the agonizing narrow road upon which Gold has been slowly trudging these recent weeks is due to suddenly widen into a superhighway. And there's no week like this new week for it to happen. But here's the key question: in which direction? Up or down? Doubtless in a week's time we shan't find Gold where it settled yesterday (Friday) at 1314.

    From our "Preaching to the Choir Dept.", we view Gold's main upside driver as the broad-based debasing of currencies, the inevitable result of too much dough, debt and derivatives. Gold generally benefits as well from the "U-word" -- Uncertainty -- of which there seems a burgeoning plethora here, there and everywhere over this, that and the other thing. And yet, for all the world, Gold throughout these recent weeks has been dead in the water. So much so that of the 11 trading weeks year-to-date in 2018, Gold has traded in the 1320s during 10 of them.
     
  9. longtermbull

    longtermbull Administrator Staff Member

    Joined:
    Nov 2016
    Posts:
    1,649
    Likes Received:
    20
    I totally agree, uncertainty is everywhere but the price of gold has not really moved. We also have rising inflation across the globe and whatever anyone says there is a lot of pain coming for those who stretched their finances to buy that dream home. However, when considering the price of gold has not really moved despite all this uncertainty, what will be the catalyst to make it move in the short to medium term?
     
  10. Chartman

    Chartman Senior Investor

    Joined:
    Sep 2017
    Posts:
    616
    Likes Received:
    8
    Even more uncertainty with the FB saga - surely FB is not the only company to use such tactics?
     
Tags:

Share This Page