Is it time to sell my Gold?
I've owned gold since it was at the mid 500's...I think it was up 33% in 2007 alone. Is now time to sell or should I sit tight and wait for more rate cuts?
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196 points
TeekaTiwari answered 11 months ago …
I can't advise you directly, but what I can say is that I believe that the US Dollar will continue to weaken; I believe that rates are going down, and I believe that inflation will worsen. Each of these events is extremely bullish for gold prices.I leave you to draw your own conclusions!
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2703 points
MNSL answered 11 months ago …
History has proved no asset class has appreciated continuously. Market forces always change their strategy according to the situation. For example one time there was a demand even for salt. People exchange gold to get salt. Suddenly now there is a demand for animal products. Some times when greed and herd mentality develop in any situation for particular commodity, their prices will go through roof irrespective of enough supply. You can see even some fast developing countries how greed and herd mentality has created higher prices for maize and palm oil despite record production and supply in 2007. I think gold will never go beyond $1000 an ounce. To my knowledge the previous record of $875 set in 1980. I heard now gold has hit an all-time high, with futures in the precious metal rising above US$875 an ounce. I am not very expert in gold only I am learning now. But I feel it is better to sell below $1000 an ounce. Situation can change at anytime like in 1980s.
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2547 points
Oldman answered 11 months ago …
If you want to take a profit, get a 5 year chart of GLD, and see if you think this is a good time to sell. Personally, during a period of recession/stagflation, I would want to hold. However. there is the possibility that LTCG may revert to 20% after 2010; and if you are in the <15% Taxable income bracket for 2008 or 2009, you would pay no LTCG at all! However, one must distinguish gold held as an investment from a gold coin collection ...because the tax rate on a collection gain is still 28%.
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MNSL answered 11 months ago …
Creezy I forget to mention one thing. In current situation we must follow value masters because most assets has become very expensive except some assets and stocks. There will be artificial value for most assets. Therefore if we can get more than 30% profit at this moment it is a clever investment. I will sell that and buy undervalued shares and commodities with great potential in the future.
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1786 points
ChaosNantuko answered 11 months ago …
Don't sell based on your profit to date. Sell based on what you think will happen next. As was mentioned before, the previous record set for gold was 875 around 1980. Yet inflation adjusted, that high is just about $2000, so from its inflation adjusted high, gold is still nowhere near its peak. The next year will be one of uncertainty. I don't see anybody doubting that. The best time to buy gold is when the wall street is uncertain what will come next.
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