Where will gold prices go?

[macrocoin]

At one time I was into 1oz eagles for bullion. These days, the entry price is too rich for my tastes, but I still cant say that the market wont continue to head upwards. Some folks think gold will hit $1000, others think it has begun to plateau and may begin to slide back to recent prices again.

 

What are your thoughts on entering into bullion purchases again?

At what price do eagles become attractive again to you?

[Jazzy]

Bullion is generally used only as a hedge against inflation, and you wouldn't want more than 5 to 7 per cent of your portfolio to be bullion. I know I'm going to get some argument on this, but diversification is the first rule of investment. A good 401(k), bonds, mutual funds, stocks etc. Don't go hog-wild buying bullion, no matter how high the gold prices go.

 

At any rate, this isn't the buyers market for gold right now unless you're willing to speculate on an upward curve for a while, in which case you had better have pretty good prescience as to when the market equalizes - so that you know when to sell.

 

And when it comes to buying and selling of substantial amounts of bullion, best to go through a broker.

 

Anything else should be coins for your collection, just having fun.

[truthteller]

I think you missed the boat on gold for now. However, long term purchases look good. I was a pessimist at the begining of the upswing at $350, but many, many world economic factors have changed my mind. First and foremost, the Chinese are buying gold, oil and many raw materials with cash. Secondly, inflation will go on a tear in the near future, and the "controls" will fall apart. Thirdly, I seriously think Iran will shift from dollars to Euros this year for all oil payments. When this happens, watch out. If there is a conflict in Iran, it will be long and drawn out making investors bail out of the dollar. Lastly, if China decides to sneeze and sell off US bonds or even not buy the new 30 year note, see commodities take off.

 

 

TRUTH

[jtryka]

At what price do eagles become attractive again to you?

 

Modern gold eagles are almost NEVER attractive to me, they are truly ugly coins with a bastardized shallow rendition of Saint-Gaudens' double eagle. I have two gold eagle coins, a 1/10 oz and a 1/4 oz that were gifts. If I were to buy gold just for gold, I'd buy some nice AU Liberty double eagles which are going for just a little over melt. Certainly I'd also buy Saints, but the premium tends to be higher than Libs. If you can't afford an ounce, get a Liberty eagle or half eagle, the eagles themselves are underappreciated and have continued to languish despite the run up in gold. These modern coins are nothing special, just metal, a Type 3 Liberty double eagle is gold and it has some wonderful history.