401k and buying gold

[John Tao]

Gold (and Silver) is going down these days after a huge rise. It could be a good entry level. It is aspected by market operators to reach 1800 by the end of this year.
I prefer physical Gold that a piece of paper, but it's an opinion exactly like every other opinion read above.
Consider what it's happening in China and India, currencies troubles, emerging markets increase in industrial production and you can easily imagine why also this year gold will rise up a lot.
Remember that you have not only as a choice bullions, but also gold pounds, Kruegerrands, that are exactly like cash.

 

[cooter08]

Gold is THE inflation hedge. When the market turns (as it is starting to now with the high price of oil) and inflation is on the rise many investors turn to gold to ride out the storm. As of yesterday I hear the end of year price target is $1550 plus.

 

[Alawicous]

Why is this thread being revived?

Gold (and Silver) is going down these days after a huge rise. It could be a good entry level. It is aspected by market operators to reach 1800 by the end of this year.
I prefer physical Gold that a piece of paper, but it's an opinion exactly like every other opinion read above.
Consider what it's happening in China and India, currencies troubles, emerging markets increase in industrial production and you can easily imagine why also this year gold will rise up a lot.
Remember that you have not only as a choice bullions, but also gold pounds, Kruegerrands, that are exactly like cash.

You are obviously in the precious metals business. Don't forget to inform people about the gold confiscation act of 1933 and then steer them into Swiss Francs; which actually LOST value when gold made a move of over 400 bucks to the upside. How does that happen? I love Gold and I think it is a smart investment, the physicals. But, most places charge huge spreads on their products - like Krugerrands. Spreads that are 35%, meaning the fee you pay to the gold dealer above the actual value of the product. But the market has to move 54.87% just to BREAK EVEN!!!!!

What does that mean?

Let's say you buy $10K of kugerrands with a 35% spread. The value of the gold coin you just paid 10K for is really worth $6500 if you tried to sell it the same day. Now gold goes from today's price of $1415/oz to what this guy is saying, $1800/oz. That means your investment just made money right? Wrong! Even though gold went up $385/oz your account is now worth $8268 - when you started with 10K.

Sounds like a great investment - your kugerrands and other semi-numismatic and numismatic coins. Can I get some fractionals in case I have to barter with them?


BTW, gold and silver going down these days back in January? That's normal. Plus, if you follow the technicals then you know exactly why it went where it did. Combine that knowledge and straddle the market when it made the 20 dollar move on 2/2 or 2/3 in an hour and a half; then you will make as much in less than a day what it took the guy to make on the kugerrands all year if gold went to 1800 and still not be above water. True story everyone.

 

[cooter08]

Sounds like someone knows gold! I'd rather stick to gold companies stock.

 

[Big A]

Sounds like someone knows gold! I'd rather stick to gold companies stock.

Actually, some quite misleading information in that post.

 

[cooter08]

I don't know enough about gold to know what was wrong with it. I do know that when inflation is on the rise investors go for the gold.