Three Reasons Why This Could Be The Bottom for Gold

Discussion in 'Commodities Forum' started by Gomer, Feb 10, 2014.

  1. BabyBear

    BabyBear Active Member

    Joined:
    Aug 2014
    Posts:
    26
    Likes Received:
    1
    There's no reason for the average retail investor to own physical gold unless they think the global economy is going to completely collapse overnight. GLD provides instant liquidity, adequately tracks the spot price, and will save an investor the hassle and expense of safely storing physical gold.
     
  2. JR Ewing

    JR Ewing Super Moderator Staff Member

    Joined:
    Feb 2014
    Posts:
    4,950
    Likes Received:
    39

    Agreed. And I think food, water, guns, and ammo will become more in demand if such a collapse ever occurs. :D
     
  3. jondjacob

    jondjacob Well-Known Member

    Joined:
    Jul 2014
    Posts:
    96
    Likes Received:
    1
    Amen to that, but I still am drawn to gold because of its perpetual value. There is something about the idea of buying gold that draws me, and many others in even when we might agree with you in theory that gold isn't always a perfect first investment.

    My guess is that gold feels more legitimate, even if it isn't any more so than a stock certificate.
     
  4. SamClemensMT

    SamClemensMT Well-Known Member

    Joined:
    Oct 2014
    Posts:
    167
    Likes Received:
    0
    I think that gold will continue to drift lower as it is directly correlated to the price of oil. Oil seems like it wants to drop to the price of corn oil at this time. Following this logic don't expect much from gold. This is perhaps a great opportunity to buy gold for cheap.
     
  5. JR Ewing

    JR Ewing Super Moderator Staff Member

    Joined:
    Feb 2014
    Posts:
    4,950
    Likes Received:
    39
    I've been around long enough to know that oil won't stay cheap long. :D

    As for gold, you just never know. I have little doubt that it will be much higher in a few decades when I'm an old man, but I can't say much more than that between now and then.
     
  6. SteakTartare

    SteakTartare Senior Investor

    Joined:
    Mar 2014
    Posts:
    857
    Likes Received:
    11
    +1 to this big time. Oh, it is nice now for the consumer, but ain't staying that way for long. ;)
     
  7. SamClemensMT

    SamClemensMT Well-Known Member

    Joined:
    Oct 2014
    Posts:
    167
    Likes Received:
    0
    I've mentioned it in my previous post. But it bears repeating. This is probably a good time to buy gold, silver and even copper. The price of all three is falling now, but that's only due to strength in the dollar. Read "Good as Gold: How to Profit from the Coming Boom in Copper" (Amazon), and you'll get the picture.
    Untitledsz2.jpg
     
  8. petesede

    petesede Guest

    Joined:
    Dec 2014
    Posts:
    991
    Likes Received:
    2
    1. Contrarian investing is fine and I do think some of these guys give ´predictions´ based on what has already happened. Gold fell 30%, so I am bearish on it... well duh...

    2. Has always been true. Gold has not changed in.. well.... ever... and so none of its properties in regards to electricity or magnetism is going to affect it´s price change over the next few years

    3. I agree with this one though. I do think gold is near or at its´bottom, the question is how long is it going to linger here. Opportunity cost is the name of the game.. why buy gold if it is going to sit in this range for a long time. IMHO, playing oil is better right now
     
  9. SamClemensMT

    SamClemensMT Well-Known Member

    Joined:
    Oct 2014
    Posts:
    167
    Likes Received:
    0
    To all the gold bugs out there. The price of gold will finally take off once the powers that be in London determine that it should. So, keep on thinking big thoughts. They can't suppress the value of gold forever.
     
  10. SamClemensMT

    SamClemensMT Well-Known Member

    Joined:
    Oct 2014
    Posts:
    167
    Likes Received:
    0
    Funny thing is that the price just keeps falling. Now it's as cheap as it was back in 1979. Pretty soon they'll be paying us to take it off their hands if this trend continues.
     

Share This Page