Buying gold as the price increases

[ZEE123]

I planned to buy some gold in about a month's time, but the price of gold has sharply increased over the past few weeks. What I've been wondering is if the price of gold stays high, will it still be worth buying gold? Just wondering what everyone's thoughts were on this. There is always the the possibility that the price might drop slightly at some point. Likewise, the price of gold might stay high or perhaps go up even more.

[Sovhead]

I started buying at £1250/oz when it went to circa £1350 it goes through your mind the price is high but I kept buying….to see it then hit £1450 and again it makes you think “I’ll wait on it dropping before i take another plunge” I didn’t wait kept buying and buying all through the 1550’s and 1650’s and now we’re near £1750.

If you look at gold over the last 10 years it’s jumped 116% even if it drops soon I’d keep buying, if it rises the same.

[Petra]

Just keep buying! 😮🤔just look at how gold has got to this time and place…. how many people in the past said no to buying gold when it was hundreds of £££ lower than now? Buy and hold😮🤔🤔 if needs, just buy small/fractionals🤔

Edited March 22, 2024 by Petra
spell

[Midasfrog]

The price of gold was high in 2017 , seven years on £900 for a 1oz QB Dragon doesn't seem so bad after all .

Today's high is tomorrow's low 

[Dalriada83]

2 hours ago, Sovhead said:

I didn’t wait kept buying and buying all through the 1550’s and 1650’s

Streuth! Lazarus walks amongst us!

[James32]

Good to see all ten votes said yes.

[Dalriada83]

13 minutes ago, James32 said:

Good to see all ten votes said yes.

Does this mean we are sage elders, steeped in wisdom and deep understanding of the vagaries of precious metal markets . . . or just gold-fevered crazed lunatics?

[James32]

Just now, Dalriada83 said:

Does this mean we are sage elders, steeped in wisdom and deep understanding of the vagaries of precious metal markets . . . or just gold-fevered crazed lunatics?

I'm going with the latter.

Although if it all goes t1ts up, I've enjoyed every minute of it.

[Dalriada83]

1 minute ago, James32 said:

I'm going with the latter.

Although if it all goes t1ts up, I've enjoyed every minute of it.

Amen to that! Although in my case I rather suspect that the jury is, as they say, out to a rather extended lunch. 

[Tn21]

Yes I would say continue to buy, just be very selective of what you purchase.

Right now I'd rather buy fractionals if and when they come up for a good price over the heavier weights 

[Dalriada83]

I know I shouldn't but I've been watching Youtube again and if all of these American demagogues forecasting the destruction of fiat currency turn out to be right, how are we going to value Gold and Silver? I would like to announce the formation of the Dalriada Precious Metal Exchange: opening at 20 Turnips for 1 ozt fine Silver and a Friesian cow for 1 ozt fine gold. Of course there will have to be side markets for equivalence, eg. 2 Swedes to the Turnip; 2 Longhorn to the Friesian etc. Everybody welcome - fees apply. According to these American chaps I could be trading by next week. Anybody in? For a limited time only you can join the Exchange for the introductory offer of just one 1 ozt Gold Britannia. This offer comes with a 30 day cooling off period to let you try and find me. Your statutory rights are not affected . . . in Bolivia. Join now to avoid the Christmas rush!

[modofantasma]

4 hours ago, Dalriada83 said:

how are we going to value Gold and Silver?

You'll be stood in Tesco's at the checkout and you'll have to explain the value of silver to the nice cashier and they will be like 'oh ok' and clip some off your 1 oz Brit and print out your receipt and away you go with a boot full of groceries.... And yes it'll really, definitely be next week this time maybe probably

[Paul]

£2,000oz in next 24 months 

[Petra]

7 hours ago, Dalriada83 said:

Does this mean we are sage elders, steeped in wisdom and deep understanding of the vagaries of precious metal markets . . . or just gold-fevered crazed lunatics?

🤔🤔🧐😁

[Dalriada83]

So the question now is: "who was drinking the most (per capita) - the 2 or the 22?"

[dicker]

Cost price averaging….

[ZRPMs]

I remember a sovereign going over the £200 mark and thinking "Bloody hell these things are getting pricy" Can't believe the price I gave for my 1838. I must need my head read. All jokes a side. Pound cost average. I've still managed to keep my average cost of a sovereign below best price sovereigns. If its a long term goal or purchase there is no reason to stop using some of your disposable funds to purchase a few more as mentioned by so many wise old sages above.

Edited March 24, 2024 by ZRPMs

[ArgentSmith]

Given the lacklustre performance of Gold in USD terms since the high posted in 2011 I would expect the next blow off top to be at least 2-2.5x. Over the next couple or three years  $3800-$4750 seems almost a shoe in. The Big question for me does Sterling appreciate against USD? I doubt it lol.

[ArgentSmith]

Haing said that Silver is a better buy 😁

[Booky586]

Yes, I'm still looking out for collectable coins. All time high might encourage sales of dormant collections and the chance of some interesting sleepers.

I'm speculating here but there may also be a lag in the premium over spot prices on coins at auction etc.

Edited March 26, 2024 by Booky586

[Bratnia]

Buy equal amounts of stock and gold, average-in over time. When you look back some will have bought at relative highs, and lows. Averages out OK. When you retire and average-out over time that also will work out OK. Time smooths the high and lows out. It may be a case of gold does poorly, in which case stocks will likely do very well. Or perhaps stocks do poorly/gold does well. If 50 gold value halves to 25, when 50 stock value doubles to 100, you'll be better placed than another who solely invested in the worst performing asset. Historically for all ten year periods stocks total returns were the better performing asset in 60% of cases, gold bettered stocks in 40% of cases. Some might prefer 60/40 stock/gold target weightings however the differences in rewards between that and 50/50 were small.

https://www.portfoliovisualizer.com/backtest-asset-class-allocation?s=y&sl=6HieS72NQEoRc1BYYjs7CV

[Roy]

5 hours ago, ArgentSmith said:

Haing said that Silver is a better buy 😁

Who is Haing? Does he have skin in the game? 

😁

[SidS]

I have been waiting for gold to fall to £1200. I'm still waiting...

[Petra]

1 hour ago, SidS said:

I have been waiting for gold to fall to £1200. I'm still waiting...

Just load up on silver while you wait!😮🤔🤔

[bluemoon]

On 23/03/2024 at 01:06, Dalriada83 said:

I know I shouldn't but I've been watching Youtube again and if all of these American demagogues forecasting the destruction of fiat currency turn out to be right, how are we going to value Gold and Silver? I would like to announce the formation of the Dalriada Precious Metal Exchange: opening at 20 Turnips for 1 ozt fine Silver and a Friesian cow for 1 ozt fine gold. Of course there will have to be side markets for equivalence, eg. 2 Swedes to the Turnip; 2 Longhorn to the Friesian etc. Everybody welcome - fees apply. According to these American chaps I could be trading by next week. Anybody in? For a limited time only you can join the Exchange for the introductory offer of just one 1 ozt Gold Britannia. This offer comes with a 30 day cooling off period to let you try and find me. Your statutory rights are not affected . . . in Bolivia. Join now to avoid the Christmas rush!

Those American YouTubers are nuts! Their target audience are naive enough to part with money for the "advice" on Substack and various newsletter courses. Money they could have spent buying silver.

I would wait for a dip on gold for now, unless you can get a good deal on a Sovereign or something.