All that glitters, is not Gold !

I found it amazing to see such a rapid decline in gold, oil, silver, and other commodity prices, in proportion to the rise of the U.S. Dollar. Remembering recent topics, I feel bad for those who were counting on the precious metals & commodities, and this illustrates how complex and interrelated world economies are. Again makes the case for a diversified investment portfolio.

Makes me glad I didn't buy gold recently. However, learning from past trends, if/when it hits ~$300 an ounce I might stock up. I regret not jumping when US $20 gold pieces in near uncirculated condition were selling for not much over $300 around the turn of the century.

Yeah, I agree. Whenever I buy coins, I try to get proof/uncirculated quality, which gives an additional collector's value. There have been some good releases by the US Mint over the years.

LuxLuthor said:

Yeah, I agree. Whenever I buy coins, I try to get proof/uncirculated quality, which gives an additional collector's value....

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Unquestionabaly. Higher quality pieces will rise in price much more quickly than scrap pieces -- and when the base metal price falls they will also hold much more value.

Markets seem to be all over the place...no real direction. Oil, gold has dropped...but for how long...how low will things go...who knows. Anything but stable. My thoughts are to just stay out for now...just can`t predict anything one way or another. One bubble after another...mini bubbles...so many problems...and some very large ones that will just keep hanging on...unless one wants to invest for the very long term...just stay away for now.

Pay down debt...credit cards...ect. My thoughts anyway. Then start to rebuild/invest slowly...stocks are cheap...problem is they could go way lower. Probably won`t go up much anytime soon...not for any lenght of time. Don`t think one should feel like they might miss out on a upward run.

It`s tempting though. Hard for the gambler in me to stay out.

Edit...I would expect the markets to move up after the elections...but only for a short time...some of the larger problems will likely drag the markets back down. Trying to time the upsweep...and get out before the down turn...dangerous stuff. I have proven to myself that I`m no good at timing.:mecry:

as usual my 2 cents says the collector value depends on being able to find a collector who is willing to buy and pay cash when you need it..
in the mean time gold is still gold until you sell or barter it, and the market is still heavily ruled by emotion; good news the markets up and gold is down, bad news; vice versa..
in the past if you bought gold during dips like now, you could have made some money - over 10 percent - by selling it a couple weeks later..
this is a good time to buy some -- sell it in a month for more, or in a year for a lot more.

TedTheLed said:

as usual my 2 cents says the collector value depends on being able to find a collector who is willing to buy and pay cash when you need it..
in the mean time gold is still gold until you sell or barter it, and the market is still heavily ruled by emotion; good news the markets up and gold is down, bad news; vice versa..
in the past if you bought gold during dips like now, you could have made some money - over 10 percent - by selling it a couple weeks later..
this is a good time to buy some -- sell it in a month for more, or in a year for a lot more.

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Very true about the collectable aspect of gold Ted. Gold goes up during bad economic times...against a falling dollar...and during bad times collecters might not feel inclined to buy gold...for more than the value of the gold itself.

But I`m not sure if this is a "pullback" as you are thinking...or part of a "bursting of a bubble"...so to speak. Gold had a very rapid runnup...as did oil. A bubble. But anyway...gold might turn from here and go back up...no idea. I think I`d rather own some gold stocks right now than...my home in Florida...cause I Know that going down every month...and will keep dropping for a lot longer.:scowl: And one can sell gold shares...stuck with my house.

It's not likely that a giant supply of gold will be found in the near future.

In the long run, gold will continue to be the excellent investment that it has always been. A diversified portfolio is always a good idea. Gold should be part of it. I prefer junk gold coins. No need to worry about collector interest.

I don't know how much I'm willling to bet on that. The value of PM's isn't always related to their scarcity, but also to the difficulty in extracting them. At one time aluminum was worth more than silver, gold, or platinum. You just never know what new technology is going to be around in the future.

I think it's good to diversify, but also remember gold is a pretty poor investment in the long run. I would consider it more of a hedge than an investment.

InTheDark said:

I think it's good to diversify, but also remember gold is a pretty poor investment in the long run. It is a good hedge against inflation though.

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Unless science finds a way of turning lead into gold, I'm not too worried about the long term impact of gold investments.

Monocrom said:

Unless science finds a way of turning lead into gold, I'm not too worried about the long term impact of gold investments.

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I wonder if the people who invested in diamonds back in the 80's thought the same way

The most risky investing is when there are rapid rises and falls...and there is a correction of commodity spike prices underway...very bad time to risk money buying gold or any other commodity.

Like the plunging tech stock bubble burst, and current real estate correction, if oil drops back under $100/barrel, gold and other commodities will tank.

As I said in earlier threads, despite the serious debt problems, the USA is still a powerful economic force. If more of the world drops oil/gas (especially highlighted with Europe's exposure with Russian oil vis-a-vis Georgia), and/or if the USA develops more of its own offshore oil/shale-oil/coal, wind, electric car, hydrogen cell, nuclear...especially things that an individual homeowner can use--that can radically change the USA's long term outlook. Meanwhile a tremendous amount of foreign capital has been buying US real estate, corporations, banks, financial instruments, and now the $-USD. All of these are helping to diversify the US debt (& other mismanagement problems) among international investors.

What I am looking for as the most interesting long term investments are in the breakthrough alternative energy development & genetic research companies (cloning, stem cell, anti-aging, etc.).

LuxLuthor said:

What I am looking for as the most interesting long term investments are in the breakthrough alternative energy development & genetic research companies (cloning, stem cell, anti-aging, etc.).

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The risk there is that all of those are far too controversial. Especially stem-cell research. Controversy generally is not good for long-term investing.

As far as gold goes, if it tanks; that's the best time to buy gold. Its track record is such that it doesn't stay at the bottom for long. Certainly don't put your eggs in one basket. But gold is like the Sun.... You know it will rise again.

InTheDark said:

I wonder if the people who invested in diamonds back in the 80's thought the same way

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Except that gold is NOT controlled by a cartel, and even right now, try and sell a diamond - good luck. The price of diamonds is totally controlled. Industrial diamonds are CHEAP - industrial gold costs the same as well, gem gold.

Gee Lux,

I thought you'd have learn from the last thread not to bring up investing. It's better to keep the good, and bad investments to yourself. Let the "experts" fend for themselves.

another thing about gold Lux; thry aren't making any more of it, meanwhile the gov. keeps printing more and more paper dollars --
gold went down about 20 bucks an ounce again today, it's less than 800 an ounce now, only thing is you can't find any to buy, my dealer is sold out of nearly every form of gold in the past two days, and silver too!

I thought it would show you Lux the manipulation going on, doesn't matter if it's gold or silver really. How long does it take for some people to get it. Spare us the I told you so threads would ya?

KC2IXE said:

Except that gold is NOT controlled by a cartel, and even right now, try and sell a diamond - good luck. The price of diamonds is totally controlled. Industrial diamonds are CHEAP - industrial gold costs the same as well, gem gold.

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I still remember the Hunt brothers and the silver market manipulation.

Speculative futures trading with their low margin requirements allows ridiculous spike manipulations of all commodities way out of proportion for underlying fundamentals. All investing is a form of legalized gambling. Some forms just have better odds. Gold is not one of them when compared and adjusted for inflation.

Nitro said:

Gee Lux,

I thought you'd have learn from the last thread not to bring up investing. It's better to keep the good, and bad investments to yourself. Let the "experts" fend for themselves.

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LOL! OK, sorry.

MARNAV1 said:

I thought it would show you Lux the manipulation going on, doesn't matter if it's gold or silver really. How long does it take for some people to get it. Spare us the I told you so threads would ya?

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I was a bit too heavy with the salt in the wound, then?

Empath said:

It is finished. If there is still a desire to continue, please start a thread in the Underground.

Thread closed.

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The above quote, from the closing comment of a same-topic thread, suggested starting the topic again in the Underground. The TOPIC is closed here. Please don't restart the topic here.