Invest in Gold

[kim anton]

I just want to say That now is the time to buy gold. Because in coming days the price of gold will be increase. So if you have some money you should invest in it.

[Alan Mendelson]

Okay, give us your forecast? If we buy today, where will the price of gold be in 30 days, 6 months, one year? Most of us are looking for quick gains and don't want to sit for the long term.

[Canucknut]

Better to invest in gold stocks (if slightly more daring) since they give better leverage to a [I]rising[I] gold price. Especially junior miners and exploration stocks.

[Alan Mendelson]

Canucknut you raise an interesting point about gold stocks. I always thought that the reason to buy gold was for the security that the bullion offered. Gold stocks lack that security. Gold stocks are companies that can be damaged by strikes, cave ins, inflation, regulation and as such do not offer the "security" that gold bullion by itself offers.

I'm not saying gold stocks are a poor investment choice, I just think that people who want security from gold should buy gold and not the miners. Your thoughts?

[Alan Mendelson]

I agree, this time is good to buy gold because the price of gold is increasing day by day.

In the US, today it fell to the lowest level since August. That might be a function of the pricing in US Dollars. Are you in another country where your currency is not as strong as the dollar which reflects a higher price for gold?

[Canucknut]

Hi Alan,

You're correct! You buy gold to maintain the purchasing power of your currency; as a hedge against inflation, so to speak.

Gold stocks (particularly exploration and junior miners, of which I invest in) are pure speculation on a rising gold price. They are without a doubt the most risky and volatile stocks you can invest in. They're really one step above gambling. But you can tilt the odds in your favor if you know what to look for and how to analyze them. But buying gold bullion is the safest most secure way to play the sector.

Canucknut you raise an interesting point about gold stocks. I always thought that the reason to buy gold was for the security that the bullion offered. Gold stocks lack that security. Gold stocks are companies that can be damaged by strikes, cave ins, inflation, regulation and as such do not offer the "security" that gold bullion by itself offers.

I'm not saying gold stocks are a poor investment choice, I just think that people who want security from gold should buy gold and not the miners. Your thoughts?

[Alan Mendelson]

Gold stocks (particularly exploration and junior miners, of which I invest in) are pure speculation on a rising gold price. They are without a doubt the most risky and volatile stocks you can invest in. They're really one step above gambling.

Now if you really want to gamble on gold and gold stocks, try some naked options. Do the gold stocks you follow have call options and can you sell naked calls? Can you trade puts? Now-- that's gambling.

[Alan Mendelson]

As I write this, the price of gold has cracked below the $1600 an ounce support level and has fallen to $1593 an ounce. I'd like to find out what the gold bulls are thinking now? I think gold is headed for $1500 an ounce and ultimately $1300 an ounce where there is a major technical support level.

[matthewtin]

You are right. How about investing in silver? any thoughts?
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investing in precious metals

[Alan Mendelson]

Isn't silver more of an industrial metal that is more tied to the strength of the economy and industrial uses? I would put silver in the same category as copper, but silver also can be viewed as the "poor man's gold" for those who can't afford sizable quantities of gold.

Besides, I never hear any talk about a "silver standard." All I hear is talk about a gold standard. Is there anyone who wants to peg their currency to silver?

[adityakashyap]

Gold price is going down and it's a good news for investors.people will earn good money from gold,if the gold price will hike.

Gold tips

[Alan Mendelson]

I can't see any reason to buy gold now. I am pretty sure that gold will not have any more big drops and that the gold price will form a base at about $1280 USD but I can't see gold breaking through the overhead resistance levels at about $1400. And even if gold does get through $1400 how much higher could it go?

The problem with investing with gold (as opposed to short term trading) is that gold pays no interest or dividends and for large investors (someone owning more than a few one-ounce coins) it cost money to store gold.

And I wouldn't touch the mining stocks since their prices are subject to variables well beyond the price of the metal such as energy costs, labor contracts, accidents, etc.

[markkede]

Investing in Gold is very best in investment especially in current market situations.The price is lowering day by day and purchasing the Gold is surely be a good investment.

[lallaram]

Better to invest in gold stocks (if slightly more daring) since they give better leverage to a [I]rising[I] gold price. Especially junior miners and exploration stocks.

[Alan Mendelson]

Better to invest in gold stocks (if slightly more daring) since they give better leverage to a [I]rising[I] gold price. Especially junior miners and exploration stocks.

Thanks for joining and for your post. Now, what if gold prices are falling? Will gold mining stocks show more volatility and will they lose more value on a percentage basis than the actual physical metal?

[Andrewkk]

Well i think it relies on what you mean, when you say you want to spend cash on gold. If your purpose, is to take a position in gold and generate income through the cost, activity of gold then yes all these equipment are good.

[Adamman39]

Price of gold is still down.

[seemoreroyals]

Alan since you very accurately nailed the movement in gold back in February, now that we are in November, what is your forecast for the next 6 months?

[Alan Mendelson]

Alan since you very accurately nailed the movement in gold back in February, now that we are in November, what is your forecast for the next 6 months?

I can't really "forecast" six months. Looking at the charts for gold now, it looks like on the five year chart that there is a very strong head and shoulders pattern but the price of gold is now falling way down below the right shoulder and that leads me to believe the correction/consolidation has a way to go. It wouldn't surprise me to see gold "test" the thousand dollar long-term support level. I see no reason to buy gold now.

I am so disinterested in gold now that I have stopped my regular updates on the gold market: http://alanbestbuys.com/id82.html

[seemoreroyals]

I am sorry I asked. I have a position in both GLD and GDX. I was hoping you were going to tell me that gold was going back up to $1800 per ounce. I have had these positions as well as some shares in SLW for a number of years. I guess it is too much to ask for my metal stocks to go up at the same time the rest of my portfolio is at an all time high. Absent any major world geopolitical event, there does not appear to be a catalyst that would move gold or silver much upwards from here. If gold breaks below $1000 I will probably add to my position.

I noticed that coal is making a move. My BTU is finally back over $20 a share. I hope it stays there and continues to go up. Even though our current administration is averse to coal, they should at least allow these companies to sell coal to the rest of the world. What are your thoughts on coal?