Do you agree or disagree?

[ChrisF]

So, Ive been saving some cash all year and now have enough to buy an ounce of gold (or 4 sovs).  The only thing stopping me is the price.  In my early stacking years i would have classed myself as an emotional investor.  Nowadays I keep that in check with some collecting, I'm trying to move towards purchasing gold as Im currently very top heavy on silver.  I was tempted to pull the trigger and then I read the below article this morning which made me pause as it kind of reaffirmed what I already thought.  What do you guys think?   I was going to give a synopsis of the article but if you cba to read it then your opinion carries no weight 😃.  

https://www.thisismoney.co.uk/money/investing/article-7801597/Will-gold-extend-winning-run-2020.html 

If nothing else, lets have a bit of healthy debate 😉

[KitboyE17]

Why are you buying the gold? For long term wealth preservation or to flip when the price rises and make a quick buck? Once you answer that question the solution to your ‘dilemma’ should be easier to make. 

As I stack for wealth preservation I am not buying too much gold at the moment. Keep your eye on the price, watch the ups and downs and try keep the funds easily accessible so you can quickly and easily buy at the right time. 

[trp]

Interesting article @ChrisF. For me personally, I’d not be worried as anything I buy is for the future and if I were to wait for the perfect time to buy I don’t think I’d ever buy anything! I put my savings into PM’s simply so I don’t spend it on those sporadic purchases that lead to buyers remorse. 
 

As @KitboyE17 has said it is down to what your plans are and what you want. When you are aware of what it is you want to achieve, the importance of other things you think about drops or picks up helping you make a informed decision. 
 

[HawkHybrid]

work on your strategy. you can't win every battle

but forming a good strategy might help you to win

the war.

imo silver is slowly showing signs of stabilising a

decade+ bottom price. the next few years should

end with favouring purchases of silver over gold.

this would be a little awkward for those who are

already top heavy in silver. gold has it's part to play

within an investment. consider purchasing the

minimum to fulfil that requirement and then look

for chances when the outlook is clearer.

 

HH

[RoughDog]

41 minutes ago, ChrisF said:

So, Ive been saving some cash all year and now have enough to buy an ounce of gold (or 4 sovs).  The only thing stopping me is the price.  In my early stacking years i would have classed myself as an emotional investor.  Nowadays I keep that in check with some collecting, I'm trying to move towards purchasing gold as Im currently very top heavy on silver.  I was tempted to pull the trigger and then I read the below article this morning which made me pause as it kind of reaffirmed what I already thought.  What do you guys think?   I was going to give a synopsis of the article but if you cba to read it then your opinion carries no weight 😃.  

https://www.thisismoney.co.uk/money/investing/article-7801597/Will-gold-extend-winning-run-2020.html 

If nothing else, lets have a bit of healthy debate 😉

What helps me is to have a target and stick to it.  It's easy to get side tracked into collectables.

Personally I think the premiums on 1 oz gold are much better than silver.

As for the gold price in the future.  🤷‍♂️  Who knows.

Maybe the experts out there could predict what conditions may effect the price such as interest rates, consumer confidence, recessions etc.

The long term trends seems to be upwards.

[ChrisF]

45 minutes ago, KitboyE17 said:

Why are you buying the gold? For long term wealth preservation or to flip when the price rises and make a quick buck?

Im a long term stacker, saving for my retirement in another 20+ years or so.  I think for me it leaves a sour taste in my mouth if i feel I'm not getting a good deal.  Given the reduction in the pound and other factors I think to some extent Im always going to be waiting for tomorrow when i could get that extra half sov for the same price as an ounce today 😉. 

To share my thought structure, I purchase PMs as well as having my stocks and shares ISA's.  My general philosophy when i retire is to dip into my ISAs when stock markets are high and use PMs when the stock markets are low thereby using the strongest asset a the time to prolong my wealth as much as possible during retirement.  The interesting thing we see today is that the markets are doing well and PMs are high.    

So we know PMs are high due to low interest rates what would happen if we dipped into a recession?  PMs go higher or stay the same?  Interesting times....  

[KitboyE17]

27 minutes ago, ChrisF said:

Im a long term stacker, saving for my retirement in another 20+ years or so.

An oz of gold bought today will always be worth an oz of gold in 20 yrs time. Whereas a £1,000 cash today will not be worth a £1,000 in 20 yrs time. I don’t need to tell you that though do I. 

So take a look at your charts going back 20yrs, gold was about £180 an oz - now over a £1,000 an oz. Personally I would expect an oz of gold to continue upwards in 20yrs time.

I don’t stack Sovs (i hate the maths!) but reading all the posts from Sov collectors it’s easy to see they also rise in profit so I’m sure any Sovs bought this year will rise in value in 20yrs too. 

I guess your choice is either do the maths, or go with your preference to your gold content. 

[daca]

Best advice - flip a coin.

You are taking of buying 1 oz not 10 and not 1 kilo, so any future loses will be limited. 

The price of PM is something that we cant control. Buying PM is like playing the lottery, you are a possible winner until the numbers are extracted (in our case until will sell).

You will make a profit or lose only when you'll sell the gold, until then you will have a safety-net   (better to have one even if it is a thin and worn-out than having none).

 

[HawkHybrid]

6 minutes ago, KitboyE17 said:

An oz of gold bought today will always be worth an oz of gold in 20 yrs time. Whereas a £1,000 cash today will not be worth a £1,000 in 20 yrs time. I don’t need to tell you that though do I. 

 

this is a flawed argument. what about those who bought

gold in 1980, what did it end up being valued($) at in the

year 2000? over many, many decades it is true that gold

has historically gone up in price.

gold's price movement happens over years, there's plenty

of time to try and work out the details of where you are

currently likely to be on the wave.

 

HH

[daca]

1 minute ago, HawkHybrid said:

this is a flawed argument.

What @KitboyE17 is saying is that until you sell you have 1 oz of gold indifferent that you bought at 1000 £ / oz or at 10 £ /oz.

[KitboyE17]

If you don’t have to sell you can keep it locked away and ride the wave upwards again. We’re all riding a wave - depends if you are standing on a surf board or sitting in a canoe - we have to make our own choice and do our own due diligence. 

[DarkChameleon]

Having a few pensions I don't worry about the future so much and my gold and silver are the sprinkles on the top but also act as a stabilizer in that when the market dives which it will do, the laws of economy dictate that, then my pm's will rise, when the market rises then my pm's will fall...if I had to guess now I'd say that the market is overdue for a collapse and so the best thing I'd do is stack up on metals for the impending rise and then after the fall has bottomed out then buy what is best to make money on the rise, which in my opinion is bricks and mortar, because shares can go belly up if the company wasn't in a good financial position before thefall, too leveraged...Homes if you have the money to maintain are the wisest investment after a fall...pm's are the best hold for uncertainty I feel but make sure your not robbing your pensions to buy it.

 

[Abyss]

This is money article I both agree and disagree.

Parts agree "Strengthening currency is possible due to the new certainty on Brexit." In 2020 possible for GBP/USD level 1.45 (currently 1.31) 10% appreciation GBP and if Gold hit $1650 in GBP it would still be the same price.

Part disagree 'If my analysis has any validity, it won't be a 'buy' until gold is under $1,000, more than 30 per cent below where it is today." Examine charts gold hit $1550 grinded down $1450 with no real conviction in price action. Surge in Gold price in 2019 done a lot of technical damage to the bears and Gold trade back to $1400 (same again for $1300 & $1200) another surge in demand (physical & paper). For the Gold price trade below $1000 the central banks would have to stop buying and in coordinated effort sell physical gold into the market to depress prices. The Gordon Brown era selling Gold has long gone and China/Russia looking for a world where the dollar is no longer the reserve currency and will continue to stack Gold. On the other hand I also believe there is a Gold price western central banks will step into the market and sell. Some artificial price they will not allow Gold to trade higher for the next decade.

In 2020 will Gold in GBP higher or lower than current price £1154 toss of coin. My strategy when White Greyhound of Richmond released part of the Queens Beasts series provided reasonably good design pulling the trigger to buy Yale, White Lion and White Greyhound all at the same time.

Always advisable not to have all eggs one asset class and if you are buying Gold to be in a financial position to allow you hold onto it for several decades which would almost certainly guarantees that the Gold maintains it current purchasing power.

 

 

[sixgun]

3 hours ago, HawkHybrid said:

Silver is slowly showing signs of stabilising a decade+ bottom price. the next few years should end with favouring purchases of silver over gold.

This would be a little awkward for those who are already top heavy in silver. Gold has it's part to play within an investment. Consider purchasing the minimum to fulfil that requirement and then look for chances when the outlook is clearer.

This is an interesting comment especially as you have been decidedly pro-gold in the past.

i am for sure 'already top heavy in silver' and have been buying gold of late to redress the balance. 

[HawkHybrid]

1 hour ago, sixgun said:

This is an interesting comment especially as you have been decidedly pro-gold in the past.

i am for sure 'already top heavy in silver' and have been buying gold of late to redress the balance. 

 

I'm neither pro gold or silver. I try to stay with the

trend. as I've stated before: in the last bull trend gold

outperformed silver during the first part of the move

up. this repeated itself since dec 2015 but that portion

of the trend may be coming or have ended already.

very recently silver has held it's own better than gold

on the drops. the waves are multi year so there's plenty

of data coming but this could possibly be the start of

some strength in the price for silver.

I still hold an emergency stash in gold. that's unlikely to

change unless in dire circumstances.

we might see a repeat of the last major pull back where

silver bottomed in 1993 where as gold didn't bottom

until 2001.

I've been targeting gold for as many of the dips as I'm

capable of since dec 2015. let's see if the time has come

for silver.

I only voice my interpretation of the charts. luckily for me

gold has been the better buy since dec 2015. it's no

secret that I've been watching for signs that silver

could outperform gold moving forward.

 

(what I was trying to tell people is that bull trends take

years to play out, non of this get rich overnight business.

if it repeats, then the first part where gold outperforms silver

might last for months if not years. the impression I got from

people was that fundamentals meant that silver was going

to make everyone who owned it, rich overnight)

 

HH