John Paulson and the Dangers of Gold Investing
Concentrated portfolios have risk, so be sure to plan accordingly.
Latest from The Motley Fool
Will Gold Hit $800 or $1,500 Next? Who Cares?
No matter where gold goes next, stocks are a better long-term buy.
7/13/2013 by Travis Hoium
Is Gold's Recovery Attempt Done?
Several consecutive gaps up finally met a gap down.
7/12/2013 by Minyanville
Stay Away From Gold Miners
7/12/2013 by Blogs @ The Motley Fool
If the Fed stops QE........and faith returns to the markets
Gold will fall, miners will fall.
I do not believe the printing can stop.
The "printing" can be slowed, but can NOT be stopped.
There is no inflation
Deflation is still the worry.
Stock markets at near all time highs
Banks are not closed
Asia, India, and Russia seem to prefer gold, over US Dollars or US Debt.
Time will tell.
The media is great - Buy at the Top, Sell at the bottom.
At the top of the housing market - Housing prices will never go down. Buy now, or pay more later.
The media is interesting
A single $30 pop in gold price does not signal a new bull market
But 50 single days of $30/day - would signal the end of the pull back for gold........IMO
Gold is money - It has had its value for 3000 years. No FIAT currency even come close.
Gold, like all assets will fluctuate from expensive to cheap..
Anyone could have purchased gold in 1971 for $35 an ounce.
Hind sight is 20/20
Bloomberg running competing stories today on gold: First, Vietnam and other Asian countries introducing aggressive policies to discourage purchase and retention of gold as wealth preserve. Second, hedge funds placing bullish bets on gold.
bjxxxx - Thanks for the mention of the bberg article. Net-net there was a small increase of 4% (on a base which I assume was also quite small) - notable I suppose as I assume this must have been the first net positive flow in some time. But also interesting:
"Money managers’ holdings of short contracts reached 80,147 last week, the highest since the CFTC data begins in 2006. "
So there's certainly no dearth when it comes to bears. For an indicator with a longer time frame, the commercial COT data now has short contracts under 20k - first time this has been the case in over ten years, last was in Jan 2002. Back then gold was under $300/oz, I was a college kid just looking for an internship, and excited at the deal I had on my hands, snagging JDSU at the fire sale price of under $1000 per share. Of course this doesn't preclude the commercial traders going net long as was the case when gold was bottoming out in the late 90s/early 00s. An event like this is what I am saving the last of my dry powder for.
"Concentrated portfolios have risk"
Thanks Motley Fool, such sage investment advice. I'd like to add "Diversified portfolios have risk." Or "Owning Stocks have risk."
"Will Gold Hit $800 or $1,500 Next? Who Cares?
The "who chares" is a great line - when hatred turns to apathy, we are that much closer to a turning point. Picked my miners exposure back up that was dropped on Thurs. Interesting how VXGDX is still hovering around 50. I wonder if this is a function of earnings being around the corner?
Gold has taken a beating - $1900 to $1270
50% haircut $1900 to $950 is not uncommon.
If anyone is playing with margin - it is painful
If anyone needs to sell their gold, for expenses.........painful.
If anyone is looking to add to their gold collection or start to buy gold, this is a good time.
$1000 would be great
$900 would be a steal.
Gold is not a profit vehicle......rather a store of wealth.
For those who purchased gold at $300, $500, or $1000.......it was a good deal.
Gold does not have to be reported, No records
A bank can default
A stock can go to zero.
Gold has been around for 3000 years...........and is still considered valuable.
Fiat currencies seldom last for more than few hundred years.