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Gold Is Back In All Its Sublime Glory!

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Redtea
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Gold Is Back In All Its Sublime Glory!  Reply with quote  

When it comes to gold, the investment community suffers from a kind of financial Bipolar Disorder. It swings back and forth, from a pure lust for gold...to unmitigated contempt. Currently, the yellow metal is back in the good graces of hedge fund managers, among other institutional investors. But as recently as six months ago, a gold investor could do nothing right -- a pariah amongst pundits and saints.

Much of the problem has to with the fact that gold is a boring investment. It stubbornly retains its value, and it doesn't pay interest. Sure, there's all that past exciting stuff about gold tucked away in Egyptian tombs, and sunken treasures off the coasts of the Americas. But unlike a company stock, gold doesn't come with an exciting story. There's none of the thrill of recently developed products, or a dynamic new CEO on board. Let's face it -- gold is as uninspiring as a park bench. It just sits there in our vaults; it's done nothing for us lately.

But suddenly gold is back on it's manic upswing again. Presumably this has to do with a fear that the securities markets, for all their stellar success, could come crashing down. And what better commodity than gold to stabilize a shrinking stock portfolio? According to Bloomberg, money managers added to their net-long gold positions for a fourth straight week through July 1st. Moreover, their holdings in gold ETFs are climbing at a pace unseen in the last two years.

The debacles in Iraq and Ukraine will certainly not improve soon -- they foreshadow an investor need for a safe haven.
Professional investors are acutely aware that gold is now showing uncommon strength, in an economy that is showing signs of improvement. The debacles in Iraq and Ukraine will certainly not improve soon. They continue to foreshadow an investor need for a safe haven. As Jeff Greenblatt points out in Futures Magazine, no one could predict that one of the worst terrorist organizations in the world, ISIS, would take over the Iraqi government.

As gold prices climbed by 9.5%, gold funds increased by $4.6 billion. Clearly this is a bullish turnaround, and not a bleep on the radar. One of the signs of this renewed bull market is that the rest of the precious metals complex is following suit. Silver at about $21.00 per ounce, and platinum at about $1,500 per ounce, are showing strong signs of recovery. Palladium though is the star of the show. It has experienced its longest rally since 2000. The need for palladium increases for its an anti-pollution kick start in the catalytic converters of automobiles, at the same time that supplies decrease in South Africa. In other words, the entire sector of precious metals is now an exciting place for money managers to park funds.

Evy Hambro, Black Rock Portfolio Manager of World Mining Fund, in an interview on Bloomberg TV yesterday, discussed his clients' growing concern with inflation. Gold's traditional role as a hedge works well now, as investors regain confidence in its upward price trajectory.

For the foreseeable future, money managers have returned to their manic gold phase. If you never departed from this phase in the first place, congratulate yourself. If, on the other hand, you're following the lead of the returning manic gold investors, know that you're in good company. In either case, now's the time to add gold to your investment holdings.





-RedTea
Independent News for the Right-Minded American



redteanews
Post Tue Jul 08, 2014 10:34 pm
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bourseindia
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The post is very Captivating and inspires various investors to trade. Encircle your investment with the Equity Tips as it will help you for getting seminal output for your investment.
Post Wed Sep 09, 2015 6:56 am
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blixet
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quote:
Originally posted by bourseindia
it will help you for getting seminal output for your investment.


Not sure that is a good thing? Shocked

Information is more valuable sold than used – Fischer Black
Post Wed Sep 09, 2015 4:47 pm
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Hello20
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This is interesting article. I always think it's good to have investment in some growing assets.
Post Sun Dec 06, 2015 5:48 am
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littleroc02us
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What's funny, is I forgot about all of the Gold hype since the market crashes in 2008. I didn't realize gold is only valued at 1000 usd/oz. Glad I never touched the commodity since it was valued at around 1800 usd/oz in 2011 with projections of well into the 3000 usd/oz range. I guess you could say it's not my cup of tea. Smile

Risk comes from not knowing what you're doing. (Warren Buffet)
Post Mon Dec 07, 2015 4:24 pm
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global
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Back when I was younger I saw commercials advertising that they would buy your gold. They were so frequent that I thought investing in gold would be a good option. Gold has since increased dramatically. Now that I'm old enough to invest I think it won't continue. In fact it might even go down. Too bad I didn't know how to invest then.
Post Wed Jan 27, 2016 1:08 pm
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christcorp
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Well, it looks like gold and silver are definitely reacting positively to the market. Which is part of what it's for. I've always looked favorably on gold and silver.

The difference between me and the "Investment community", is I don't consider gold and silver to be an investment. It's a way to preserve wealth. When opponents talk about how gold and silver don't make interest or pay dividends, that's ok. As long as you're not looking at it as an investment. There will be ups and downs in the economy, market, political, etc. But on average, gold and silver have done a pretty good job maintaining it's purchasing power. And when there's spikes, like in the 2008-2011 period, I was able to use those spikes to use gold and silver to pay off debt and subsidize my savings and investments. Unlike many I know, the crash of 2008 didn't phase me at all. I've recouped back my losses and is in the positive again. And if the dow and s&p drop dramatically again this time, I'll be fine. And my gold and silver will get me through that fine also.

One LITTLE CAVEAT: Because I don't see gold and silver as an investment, but more as "Insurance"; that you actually get back your premium when you no longer need it....... I do not believe in PAPER silver and gold. I don't buy gold/silver stocks, etf's, mining, etc. If it isn't physical and held in my hands, then it doesn't exist. And more and more people are starting to realize the truth. Paper silver and gold is between 250-290:1. That means, there's 250 times MORE Paper silver/gold than there is actual physical silver and gold to back it up with. As more and more "INVESTORS" realize that in a true crash, where the dollar and the market are in the toilet, and silver and gold are soaring, and they can't actually get any of the physical silver back..... there will become more of a separation with the paper silver/gold. Every year, china, russia, india set new records for how much physical gold and silver they've been importing. Every year, the us mint, canadian, pearth, and british are surpassing records of how many minted silver and gold coins they sell. And all of these people want PHYSICAL. If it wasn't for the Paper B.S. in the silver and gold market, which is manipulating the price, gold would be at $2500 - $3000 per ounce and silver would be at $70 - $100 per ounce.

Buy silver and gold; not as an "investment" but as insurance. Insurance that you can get your premiums back when you no longer want it. And only buy physical. Never paper.
Post Fri Feb 12, 2016 2:44 pm
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