What is your take on gold. Is it a good investment as a hedge on the dollar?
Answers
951 points
Grudun answered one year ago …
Gold is a good hedge against the dollar in most markets. In the current market save for the manipulation going on (one international organization dumping gold on the market) it would be a lot higher. But remember it is a commodity that will go through cycles (I don't see a down cycle in the near term) so watch for indicators of its peak (such as additional supply from miners, years off, an improvement in the dollar, not this year, or reduced demand, not anytime soon with China and India craving it for jewlry and industrial uses).
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546 points
warren answered one year ago …
Yes it is great, but silver is better as a metal play. Select stocks are even better. Grudun there are more than one agency maipulating the price...but as you can clearly see they are losing the war but are still winning some battle on their retreat.
Historically Gold is money, hence a currency. If you think of it that way and not the way the orwellians taught you to then you will have no problem investing in it. Gold has risen in all major currencies and will continue to do so, inflation is rampant worldwide and to protect yourself you need hard good and beter gold and silver.
We are near a bottom and I would be looking to add at $885 to $890 within the next week before we really take of and breach $1000 again.
Good luck,
Warren
www.preciousmetalstockreview.com
260 points
Hillcat88 answered one year ago …
Warren, I agree your view on silver. You don't need to wait until next week as gold is already at 885 the time I am typing. I am also a long term bull and think gold would reach 1200 end of this year. However it is still consolidating and need about two to three months to reach the real bottom of this correction (850). You can see that the weekly MACD is still falling.
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2769 points
Oldman answered one year ago …
I agree with everything said here...BUT... Gold and Gold miners haven't had long-term great growth over the last 20 -50 years. Now we may (in the U.S.) be in for a period of hyperinflation...or if everything tanks, deflation. It pays to have some uncorrelated assets, and bullion is one..Au or Ag, at about 5% of one's portfolio. There was a long-term security growth of P/E for stocks, and now we may be in a long-term secular bull market for commodities, but gold and silver are only a few of the "Hedges" available.
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Oldman answered one year ago …
I just found a great review of this topic by Adam Katz, yesterday on seekingalpha:
http://seekingalpha.com/article/75325
there are over 31 comments, pro& con ...and a long-term graph of the price of gold and of the S&P.
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