Anyone else buying gold?

[_Jimlad_]

I’m sure you have all seen the big push on the TV and adverts around the place offering to buy gold, I have a friend in the know who gave his job up and now plays the currency markets, he has recently been buying up gold/silver coins and and the general prediction is that gold will double in price and silver could go the same way if not much more, clearly these are predications and with any kind of investment there is a risk.

I have been watching this site and see the gold Krugerrand go from £580 to £650 in the last 6 weeks.

http://www.goldinvestments.co.uk/shop/ (live prices)

I’m leaning towards making an investment myself, if another stockmarket crash happens it could rocket up in price, the last crash did not have this effect as large banks and investeres flooded the market with gold to safeguard there cash flow issues, but seeing as that has now happened another stockmarket crash would not have the same effect, that would be why we are seeing a flood of “sell your gold adds”

With the euro, $ and £ all doing quite badly against each other gold/silver seems to be the way to go when the stock market goes sideways and more so if and when it crashes…

Be interested to know others views on this?

 

[_Jimlad_]

I hate those adverts.

yeah i do as well, praying on the poor and putting ideas in people heads! "lets rob a house and send the gold of in the post for cash"

the point is, these people know gold is on the up as predicted late last year

 

[_Jimlad_]

Months ago I would agree (with hindsight I say this). But today I would be a lot more careful, hasn't the "worst" already happend in regards the the euro/pound etc?

I cant see another major crash happening any time soon.

i would agree, but the market has been going sideways for sometime now, and the price of gold is still rising, where it will rise or fall to is where the risk is and where you become loaded of weighed down with coins!

 

[_Jimlad_]

The prices of Gold & Platinum are still rising rapidly, Silver is a bit of a dark horse as it's price never stays steady.

i have a 5k sitting doing bugger all, getting me a few quid each month, i wanna invest and buy up some small coing (£650 each) and then hopefully cash them in a few months down the line, but if i'm honest i'm having trouble parting with the cash! as it could go sideways!

 

[_Jimlad_]

well i'm just about to buy 4 gold coins for for 2.5k... i'm ready to bite the bullet!

 

[_Jimlad_]

As said, gold should be a long term investment and not viewed as a short term gain.

Hostorically, gold always shoots up in price during a recession as people perceive it a safe place to put their money.

As to whether gold is getting close to reaching it's peak is debatable. Certainly it would have been better to have bought gold 9 months ago or even a couple of months ago and as soon as the economy foursihes again, expect gold prices to plummet.

On a personal note I am glad I bought 10 Krugerrands for £300 each I am currently contemplating selling them as I am trying to guess when gold has reached it's peak.

did you buy the coins and then hang onto them or keep them in holding?

 

[_Jimlad_]

Gold is considered to be a great hedge against numerous types of risk including inflation, deflation, political risk or simply financial uncertainty. And in a time when governments are considering the highly precarious prospect of injecting liquidity into the financial market by simply printing more money, people are likely to invest in a commodity that they feel will hold its value.

Gold is unique in that it does not operate on traditional supply and demand fundamentals, with it being in over-supply for the past 20 years, and as long as interest rates remain low it will continue to outperform other commodities.

As with any investment there is a risk however. And personally I believe that that gold is certainly close to reaching its peak value. There has been speculation for a while that the IMF and central banks are going to be selling off their vast gold reserves and if this happens, it is sure to have a negative effect on prices. You can add this uncertainty to the fact that India, the largest consumer of gold in the world, is no longer buying the metal. Couple this with dwindling consumer jewellery sales and the outlook for gold does not look so rosy.

Tieing in with Knip looking at selling jewellery, a factor that is likely to have a negative impact on the price of gold is the sale of scrap gold in India and the Middle East. World scrap supply rose by 13% last year with record levels of recovery seen in Turkey and the United States. India, who is purchasing low levels of gold, has also begun recycling with a 6% scrap rate last year. It is important to note that 71% of gold demand comes from the Indian sub-continent, the Far East and the Middle East, where ongoing scrap sales represent a significant risk to the price of gold.

Presently the the rapid rise in investor demand is off-setting the negatives on the demand side, however it is plausible that gold could be heading for a significant drop in price.

History has shown that gold is certainly a shrewd investment in times of recession, however as we start to climb out of the trough, new investors should be aware that buying gold is not the safe bet that it was a year ago.

As for another crash sending the prices soaring even higher, i'd have to bet against it. I'd imagine that we're going to still see some fluctuations, but no drop like we saw after the Lehman collapse this time last year.

thank you, very useful info

 

[_Jimlad_]

When you start seeing adverts on TV, the general sheeple buying, you know it is time to get out.

Gold isn't going to double from here- no way José!

i would agree, but then again no one said it would double from £300 for a coin and now it's at £650... if the goverments start printing more money or throwing money into the system people will again turn to gold, which will push the price up. I do agree but part of me thinks it might just keep going up

 

[_Jimlad_]

i agree and think i missed the boat, i had been watching the price of gold for a few months and have seen a steady rise, but also need to hold my hand up and say i should have moved quicker.

 

[_Jimlad_]

the link on the first page is a good site, my friend has used them many a time, pick up from london or £8 posted in the Uk (up to 5k of gold)

 

[_Jimlad_]

Thing is once the economy starts to recover and all these investors want to cash in and sell their gold, the prices will drop due to over supply.

indeed, but it depends if the governments keep chucking money into the system then gold does look a safe bet

 

[_Jimlad_]

Haha i agree, those ads are so annoying but I have to say, i sent off my gold (which is very much out of character for me to do) and received a substantial amount. an amount that i didnt expect. in fact, i received more than my local pawn shop offered me. I know that most of these "mail in you gold" companies can offer very little but the same with everything else its just a matter of researching and finding the good ones.

I went with Postal Gold. I tried a couple of others before that but i rejected their offers as they offered me really stupid amounts.

don't happen to work for them do you

 

[_Jimlad_]

hmmm, suspiciously like an advert.

indeed, first post is a old thread about gold!

 

[_Jimlad_]

I know someone wno used them, real scam merchants, offered stupidly low amount, when challenged "oops we made a mistake" and increased it but still very poor, refused to give price per gram out

he proberly works for them, 1 post and new member who finds and dig up this old thread

 

[_Jimlad_]

Got some Silver bullion

actually it's worth next to sod all, I use it as a card protector in live poker games, great for throwing at folks who river their gutshot on me

thats pretty sweet, must be worth a few bob?

 

[_Jimlad_]

well gold is still going up, the gold coins on the first page of this post have gone up another £35 in the last month, not a great deal but still going up