Anybody buying gold now?

[Jeff95531]

It just went up $25 an ounce but whoa what a year it's been. (Click on the year tab at the lower left of graph)

Commodity: Quote and summary for Gold-Dec 2015 (@GC0Y NY Commodity Exchange (COMEX))

 

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[Clay Diggins]

Buy low.

The problem with amateurs buying commodities, like gold, is they tend to buy when the price is up and excitement is high then sell when the market is falling or stagnant and full of doom and gloom. That is exactly what you don't want to do - Buy High Sell Low.

If you can resist that very human impulse you will buy when there is blood in the streets (horrible market conditions - like now) and sell when the hype of big profits in a rising market are being shouted out everywhere.

Part of being an amateur investor is believing there is a bottom or a top to any given market. The exact points those bottoms and tops might occur become the focus point for amateurs. To the point they become hypnotized and are afraid to make a move either way. No person can predict the exact top or bottom consistently. The key is to:

Buy Low Sell High.

Forget the bottom or the top and realize that right now the price of gold is very low.

BUY

When the price becomes unimaginably high should you sell? The thing with gold as a commodity is, unlike wheat or pork bellies, it doesn't shrink, burn or rot. The gold you buy today will be exactly the same when your great grandchildren hold it. Unlike a 401k, stocks or a bundle of paper dollars gold will still have value in the future.

This brings me to my theory of gold for the common man. If you can afford to buy gold you can afford to keep it for a rainy day - no matter what the market prices are. Unlike modern fiat money, gold will be there in generations to come, steady, compact, beautiful, divisible, portable, rare and valuable. The ultimate form of savings.

On the other hand if you are considering gold as an investment to make a profit - I'm not a prophet and neither are those folks who try to convince you gold is going up in value. Buy some pork bellies, everybody likes bacon and we all have to eat.

And there you have the market according to Barry. With that and $1.25 you can get a cup of cheap lukewarm coffee.

Heavy Pans

 

[arizau]

As for me, I would only buy physical gold in the form of a specimen just because they are beautiful and not as an investment. As to gold as an investment...Caveat Emptor. That said, the nature of specimens is that at some point in time they will probably rise in value just because they are rare. I choose to invest in a balanced portfolio and we have experienced a steady growth throughout the years.

 

[goldog]

While I don't disagree with any of the above a balanced approach in my opinion is best. Certainly gold and silver is lower than its been in a long time (buy). Clay pointed out its "store of value" aspect. (Hold). We as prospectors understand the value better than most.

Nice to see the jump this morning but there may be more pain ahead.

 

[rodoconnor]

Don't sell yourself short Barry. Pun intended

 

[oregonmp03]

I personally bury half mine in mason jars in the back yard and bet the rest on the dog that does his business before the race....or at least that's what Jeff Foxworthy use to say

 

[Duckshot]

Here is the year end spot for the last couple of decades.

Gold prices for 200 years

Now might be a fine dip, but i think I'll wait till WWIII to buy. I figure i should be able to trade a 16oz pound corn for one toz gold once it goes hot. Until then I will dig it up when I can.

 

[celtic fox]

its after dropping a lot

 

[KevinInColorado]

As the US short term interest rate rises over the next months, the dollar will strengthen against other fiat currencies and against gold. So gold will drop in price (in US dollar terms) and likely rise in terms of Euros/Rupees/etc. So I suggest digging now and buying later, when your $$ buy more gold.

 

[Clay Diggins]

As the US short term interest rate rises over the next months, the dollar will strengthen against other fiat currencies and against gold. So gold will drop in price (in US dollar terms) and likely rise in terms of Euros/Rupees/etc. So I suggest digging now and buying later, when your $$ buy more gold.

The Fed has threatened to raise interest rates 96 times in the last 8 years but they have only lowered them - never any rise.

Why do you think the next few months will be different Kevin?

Heavy Pans

 

[johnedoe]

As for buying gold ..... only buy/sell the paper for short term investments and hedging periods... If you are going to buy and hold ALWAYS have it in physical form.

COT shows Commercials had been buying since late Oct. these were hedged positions.
The Large money has been selling since the same period .... those are the investors.
All sides are getting to even for the next run.
Todays big moves are a flash in the pan.... read knee jerk.... to the bogus jobs numbers. As to interest rates being changed... don't hold your breath for that to happen anytime very soon.

 

[Goldwasher]

I'm pretty damn glad an oz of gold doesn't cost me market price sometimes it turns into shotguns or water pumps or even metal detectors. it's a fun thing to have around I try to get it for as cheap as I can

 

[Hoser John]

If you can't mine for gold and must buy....buy from a miner and support the industry that has been under siege for many years and every dollar helps support a miner outta work or just needing cash-John

 

[goldenIrishman]

I LIKE that idea John but there is just one problem with it. As we all know here, the gold that is bought and sold is in its refined form of 24K. When we dig it out of the ground it's never pure. Purity varies from place to place with different amounts of silver etc mixed in with it. The majority of small scale operators do not have the means or knowledge on how to purify the gold to 24K.

I've been starting to study up on refining processes but not every miner is a knowledge hog like I am. The process is very interesting in itself to my mind and several of the methods used are pretty cool sounding.

 

[johnedoe]

I LIKE that idea John but there is just one problem with it. As we all know here, the gold that is bought and sold is in its refined form of 24K. When we dig it out of the ground it's never pure. Purity varies from place to place with different amounts of silver etc mixed in with it. The majority of small scale operators do not have the means or knowledge on how to purify the gold to 24K.

I've been starting to study up on refining processes but not every miner is a knowledge hog like I am. The process is very interesting in itself to my mind and several of the methods used are pretty cool sounding.

I didn't stipulate the type of physical gold to buy, I just said if you are going to buy and hold to Always have it in physical form.
This can include junk gold, old jewelry and various other scrap forms or you can buy raw gold, usually from the miner ... the area which the gold is taken from will often give you a ballpark idea as to it's fineness.... There are also test kits that are easy to use and will give you a good enough approximation of fineness.
Also you never pay spot when buying gold .... especially raw and junk gold.

Regarding refining gold yourself..... When you go to sell it there is no way for me to know the fineness other than the above mentioned test kits... I would always rather buy it in it's raw form than a home refined form .......
If you buy from a dealer there will be documentation regarding the coin or ingot origin and purity..... And there is still no absolute guarantee.

Now on a side note regarding the perceived value of the metals we love, gold and silver.... The public has a completely different perception of value....
These two videos are really eye openers as to just how stupid the general public is. I mean I understand a little heathy skepticism and caution, but they didn't even display that.


Warning.... These videos are almost painful to watch.....

 

[Jeff95531]

Your right. I couldn't even finish the first one. ugh

 

[johnedoe]

Your right. I couldn't even finish the first one. ugh

You can't say I didn't warn you........

 

[Goldwasher]

I LIKE that idea John but there is just one problem with it. As we all know here, the gold that is bought and sold is in its refined form of 24K. When we dig it out of the ground it's never pure. Purity varies from place to place with different amounts of silver etc mixed in with it. The majority of small scale operators do not have the means or knowledge on how to purify the gold to 24K.

I've been starting to study up on refining processes but not every miner is a knowledge hog like I am. The process is very interesting in itself to my mind and several of the methods used are pretty cool sounding.

Its not hard to find buyers at spot for placer gold. Its also not hard to get over spot depending on how your selling it. Size amount and buyer affect it. But, in my experience selling at 80% because of purity doesn't have to be the situation. I definitely don't barter at below spot!

 

[goldenIrishman]

Of course the gold itself is going to effect the price as well as just who you're selling it to. Jewelers will pay more for nice nuggets than a regular gold buyer will. Collectors will also pay better prices for specimen pieces. We had stopped in at the local prospectors supply and the owned had just unearthed a really beautiful piece in the quartz matrix from her secret spot. Extremely crystalline in makeup and on the "WOW FACTOR" I'd give it an 8 out of 10.

 

[Jimmydolittle]

There are sellers on sites like eBay selling at 30%, or more above spot, and they are getting it.

Of course the gold itself is going to effect the price as well as just who you're selling it to. Jewelers will pay more for nice nuggets than a regular gold buyer will. Collectors will also pay better prices for specimen pieces. We had stopped in at the local prospectors supply and the owned had just unearthed a really beautiful piece in the quartz matrix from her secret spot. Extremely crystalline in makeup and on the "WOW FACTOR" I'd give it an 8 out of 10.