if you bought a few years ago you'd have already gotten a nice return...however the price went down some, but if inflation hits (which seems it will in maybe the 2nd or 3rd quarter of this year) then it would again hit high and it's the time to sell then. Although some are buying a little gold right now at a high price, they will still make a small profit when inflation hits again. Why buy gold? Because it's an investment, and because our money is no longer backed by gold, and because China and India are buying it up like crazy.
It is not really a good idea.
Let us say that you buy $1000 in gold. After sales tax you have spent $1070.
Let us say that the value of gold goes up by 20% (a large and unlikely jump). Now the gold is worth $1200. You have spent only $1070. Now you have made, $130, right? Wrong!
The maximum a dealer will buy the gold off you is 80% of the going price. That being the case, you can get say $960.
You have lost $110.
Furthermore the IRS considers your transaction a "capitol gain", even though you really lost money.
There is never a good time to buy gold as an investment.
Long term, the price of gold averages the inflation rate. That is better than burying your cash in the back yard, but not by much.
If you buy the gold in order to sell it for a quick profit because of the daily or monthly swings in price, then you are not investing. You are trying to guess better than the public (including the professionals) how the price will change. This is gambling, not investing.
. .
My dear, if you intend to buy, make some profits and exit, then now is the time, because next week - from 27th Jan, global risk sentiment will switch over to Risk Aversion, this will make investors divert their money to Safe Assets, like Gold, Yen, Swiss Franc,Usd, and prices will start soaring. Risk Aversion becos the Feds are about to "Taper", and recent data out of China was dissappointing.-- Good Day
Felix, From Nigeria
Generally when the stock market is doing really well, investors tend to want to put their money in stocks (possibly to benefit from quarterly dividends). Thus, gold and other precious metals prices go down at such times. For example: right now the stock market is doing ok and silver is extremely well priced.
they sell gold 24/7 because it is a lucrative business.
When markets are falling. When economies are in recession. When inflation is rising. When currencies are not trusted. When all else is failing.
i.e. Not now!
