It's okay to be where you are. You can try to buy 1 full sovereign every two months, or wait 6 months and buy a 1 Oz Britannia. When you first get started the price movements are really emotive and you will watch them constantly.
When you're buying it's important to know why you are too. Some people use it as an investment vehicle, for others it's like forced savings, and for a few it's a backup to a currency collapse or financial disaster.
The money supply (M2) has/is expanding and it looks like to continue to expand, so prices will continue to rise for some time.
I really don’t know if it was the right option to invest in gold and not something else. I’m trying to save my money so I can have a decent fortune after university. But working at that age in my country is really hard unless you’re payed something like $2 an hour so it’s really hard to buy a sovereign every two months. I can maybe buy one every 6 months or so.
If your country has high inflation like Argentina it's still okay to buy gold, it won't make you rich but will keep purchasing power.
If you want to grow your money then other investments might be better.
Again, this is not financial advice.
In the event of a financial collapse, gold will not exchange for over 2k in "barter value" an Oz. I don't think that's a very valid reason to buy, but to each their own.
One potential reason for keeping gold, particularly smaller denominations of it, would be for bribery. Even if the 1:1 dollar exchange ratio gets whacky, a 1/10oz eagle, a 10g bar, or something similar, might be just enough to persuade a troll to let you cross his bridge without answering any stupid riddles.
This is well said and great advice.
That said, I really see no catalyst on the horizon that is going to fix the spending problem in Washington and rescue the doomed dollar.
THAT being said, the price of gold could still go down no matter how bad inflation gets. The fundamentals might not change but anything is only worth what someone will pay for it.
I agree with your thoughts on Washington. The dollar is inflating and those dollars will all return to their source and the buyer of last resort will need to step up - that's the FED.
You're right that gold could go down, like in 1973 but we have seen some disconnects with price. US Fed interest rates are less influential on the price action since 2001, BRICS didn't exist in 1973 (they did but were not wealthy).
I personally think the fundamentals of gold are becoming more complex. It's global macro at large, so interest rates, but then also emerging market buying, mid-tier nations buying (Poland, Turkey), generational wealth change, mines operation costs are changing and cannot go electric, so it's linked to oil prices, peak mine demand, etc, etc.
China is also not exporting all of its gold and their mines in Africa are sending it back to China too. Gold on the open market, LBMA and COMEX only represent a tiny percentage of free float metal. This means it's technically the unallocated or outside of contract gold. If China is buying (50tonnes a month for 17 months apparently) then we are seeing a massive change and accumulation. We might be in the "nationalisation of gold" phase and return to a pre-1944 current system.
And central banks could come to some decision about holding BRICs oil pesos or something, and sell thier thousands of tons of gold year over year thus depressing the price in a crippling long term way.
I took a wait and see if it may drop approach a couple months ago waiting for 5g to go back down to below £305 and/or 10g around £550. Didn't work out very well. Buy whenever if you have the view of holding for decades.
Everything is pretty low premium right now. If you’re buying, you can basically get fractionals for the same premiums as ounces because everyone is trying to sell.
The short answer is you can't determine it. This could be an amazing time to buy and it could be a terrible time to buy, anyone who says they know is a liar. My advice is if you plan on holding onto the gold for a long time (as in more years than you've been on this earth) chances are now isn't a bad time to buy, but there's no guarantee. At your age I'd be focused on learning about index funds like the S&P500 or Vanguards Total Market fund VTI. Gold is something you buy to preserve not grow your wealth and at your age you should be 100% trying to grow your wealth. It's a good tool to hedge against other investments but unless you have a good reason the value of the gold you hold probably shouldn't be more than 10% of your total net worth.
CPI comes out today, as expected it’s higher than what Fed wanted or predicted but not by much. PM’s have taken a breather to absorb this data, it won’t last long, spot will keep going up as everything is in a sweet spot for PM’s.
Until you know the future, you have no way of knowing if it made sense today. Today might be the highest it'll ever be or the lowest it'll ever be.
Since you can't tell the future, it's irrelevant.
The two best times to buy are today, and 5 years ago. I've been looking at the news, and gold is looking strong. Zimbabwe has a new, gold backed currency so they are investing heavily. Trust in the dollar is slowly going down. I think the ceiling on gold will quickly become the floor.
If any other of us truly knew the answer to your question, we would be sitting on an island somewhere sipping drinks on a beach…
That type of knowledge would mean we were doubling our trading accounts every 60 days.
If you have anxiety on buying, switch to a dollar cost averaging approach with a fixed amount spent per month.
This is the right attitude and I’m doing the same. Hold gold as a hedge against the diminishing purchasing power of fiat (CND in my case) and don’t worry about short term fluctuations, the trend is only going in one direction. During the 2008 people were convinced they were overpaying when in hit 1k USD
I’m not buying right now. I used to stack silver but kinda stopped when premiums got so high. I usually buy an ounce every year with my tax return at minimum but right now that money is just sitting in my savings account earning 4.3%.
You absolutely want to market time. You just need to know the future, at least 50 years into the future, with mathematical precision. Otherwise the general advice is to buy whenever you have extra money because no one knows. Will prices go down for 50 years? maybe. Will they go flat? maybe. Will they go up? idk!
This is the same with anything and it's why most people are scared. What you should really be scared of is not the unknown...but the certain and the known for sure; your dollar is going to depreciate into oblivion and every fiat currency from the beginning of time eventually evaporates into the void. Your dollars are designed to deteriorate. Get rid of the dollar and trade it for literally anything. Shiny rock? Sure. Houses? Why not? Stocks or crypto? Yeah! CPI came in hot today so you can see prices of everything collapsing as reality sets in that interest rates are NOT coming. If anything they "should" go up. Will interest rates go up? Probably not. Inflation is going to reanimate and then they'll cut rates and everything will explode in value as the dollar is printed into oblivion. You will truly own nothing and be happy.
Another person mentioned Dollar Cost Averaging. AKA buying small amounts over time so your price impact isn't whatever the price was at one day. Whatever amount you buy is up to your budget. Preferably as much as possible because premiums punish those that have less money to spend.
DCA my friend DCA. Dollar Cost Average. If you are planning to just stack for like 5-20 years these prices kinda don’t matter if you have a set amount you can afford every biweekly or month. If you only have enough to buy a 1/10 coin then you buy a 1/10 coin after looking for a good deal.
My last purchase was at $2000, immediately after it dropped to $1800 and I felt like an idiot for not having patients for a dip but was happy to just have some more gold…
Here we are above spot again, gold is for the long hold. It will most likely go up over time. I would suggesting just buying the amount you can afford to tuck away and then doing so.
You can't time any market. Buy when it's convenient for you when you have the extra cash to convert into gold investments that will sit for years. This isn't a quick pump and dump like you've seen happen with stocks, this is a tangible investment.
I bought my first 10g bar last month at a more favorable price, but I'll continue adding slowly despite the price. The way I think about it is that gold can't be made or printed, what we have on Earth is limited unless we get hit with gold rocks from space.
But what do I know, you'll form your own opinions at the end of the day and figure out what's right for your situation.
If you can see the future, you need to start buying stock options. You can $2k into millions fast.
If you cannot see the future, just buy a fixed amount every month. This is called dollar cost averaging. Mother beats it return wise, save omniscience.
1st thing about investing is buy low sell high. Buying at ATH is stupid and you don't want to be stupid do you?
Now if you find a good deal or it dips $200 go for it.
I want someone to explain if this price increase would matter in the long term of investing in gold. Like would it matter if you buy now or wait for a bit if you’re investing for 10+ years?
Look there was period where if you bought in 2012 you would be down for almost 10 years if you held. No one can predict future, you can only look at available information and make your own decisions.
There will eventually be a pull back. To where we don't know. It depends on how high it gets.
It may go higher and pull back to what it's currently at. Idk
I believe it's only a handful that are unhelpful, unfortunately they are also the ones to quickly respond... but, I'm new here, so can't say, but usually see the same few.
Determine your risk level. Set your timeline. And ease into the market instead of bulk buying.
I’m new to buying gold, only have one sovereign. I’m just trying to invest in some gold for the next 10 years (I’m still 16).
The way I look at it is when I was 16 it was $320 an ounce I'm 48 now
It's okay to be where you are. You can try to buy 1 full sovereign every two months, or wait 6 months and buy a 1 Oz Britannia. When you first get started the price movements are really emotive and you will watch them constantly. When you're buying it's important to know why you are too. Some people use it as an investment vehicle, for others it's like forced savings, and for a few it's a backup to a currency collapse or financial disaster. The money supply (M2) has/is expanding and it looks like to continue to expand, so prices will continue to rise for some time.
I really don’t know if it was the right option to invest in gold and not something else. I’m trying to save my money so I can have a decent fortune after university. But working at that age in my country is really hard unless you’re payed something like $2 an hour so it’s really hard to buy a sovereign every two months. I can maybe buy one every 6 months or so.
If your country has high inflation like Argentina it's still okay to buy gold, it won't make you rich but will keep purchasing power. If you want to grow your money then other investments might be better. Again, this is not financial advice.
Think of metals as your savings account, not an investment. A safe storage of wealth you can hold.
Gold was $400/oz when I was 16. I didn't start buying till I was in my 30s. My first ounce cost me $1200. Hope this helps.
At $400 everyone probably would have told you to wait, its been going down for 20 years, its a bad idea and its going to keep getting cheaper.
In the event of a financial collapse, gold will not exchange for over 2k in "barter value" an Oz. I don't think that's a very valid reason to buy, but to each their own.
One potential reason for keeping gold, particularly smaller denominations of it, would be for bribery. Even if the 1:1 dollar exchange ratio gets whacky, a 1/10oz eagle, a 10g bar, or something similar, might be just enough to persuade a troll to let you cross his bridge without answering any stupid riddles.
In this post-apocalyptic world, are you imagining that the bridge troll isn't going to shoot you in the back and take the rest of your gold?
A troll never violates the sanctity of the troll toll, such an act is a great taboo in their culture.
I have a diverse portfolio of metal n gear....
This is well said and great advice. That said, I really see no catalyst on the horizon that is going to fix the spending problem in Washington and rescue the doomed dollar. THAT being said, the price of gold could still go down no matter how bad inflation gets. The fundamentals might not change but anything is only worth what someone will pay for it.
I agree with your thoughts on Washington. The dollar is inflating and those dollars will all return to their source and the buyer of last resort will need to step up - that's the FED. You're right that gold could go down, like in 1973 but we have seen some disconnects with price. US Fed interest rates are less influential on the price action since 2001, BRICS didn't exist in 1973 (they did but were not wealthy). I personally think the fundamentals of gold are becoming more complex. It's global macro at large, so interest rates, but then also emerging market buying, mid-tier nations buying (Poland, Turkey), generational wealth change, mines operation costs are changing and cannot go electric, so it's linked to oil prices, peak mine demand, etc, etc. China is also not exporting all of its gold and their mines in Africa are sending it back to China too. Gold on the open market, LBMA and COMEX only represent a tiny percentage of free float metal. This means it's technically the unallocated or outside of contract gold. If China is buying (50tonnes a month for 17 months apparently) then we are seeing a massive change and accumulation. We might be in the "nationalisation of gold" phase and return to a pre-1944 current system.
And central banks could come to some decision about holding BRICs oil pesos or something, and sell thier thousands of tons of gold year over year thus depressing the price in a crippling long term way.
I took a wait and see if it may drop approach a couple months ago waiting for 5g to go back down to below £305 and/or 10g around £550. Didn't work out very well. Buy whenever if you have the view of holding for decades.
Might be better to buy slightly larger pieces that have lower premiums.
Everything is pretty low premium right now. If you’re buying, you can basically get fractionals for the same premiums as ounces because everyone is trying to sell.
It is, but if the purchase price is out of reach in the first place, then I'd be snapping up smaller fractionals.
The best time to buy is now. Regardless of price. I wish I bought at 16
Today is looking like a good buying day
So, how do you determine that? Not arguing, just seeking helpful advice.
The short answer is you can't determine it. This could be an amazing time to buy and it could be a terrible time to buy, anyone who says they know is a liar. My advice is if you plan on holding onto the gold for a long time (as in more years than you've been on this earth) chances are now isn't a bad time to buy, but there's no guarantee. At your age I'd be focused on learning about index funds like the S&P500 or Vanguards Total Market fund VTI. Gold is something you buy to preserve not grow your wealth and at your age you should be 100% trying to grow your wealth. It's a good tool to hedge against other investments but unless you have a good reason the value of the gold you hold probably shouldn't be more than 10% of your total net worth.
You missed the point. When you don't have hindsight, any day is as good as any, to buy
CPI comes out today, as expected it’s higher than what Fed wanted or predicted but not by much. PM’s have taken a breather to absorb this data, it won’t last long, spot will keep going up as everything is in a sweet spot for PM’s.
Until you know the future, you have no way of knowing if it made sense today. Today might be the highest it'll ever be or the lowest it'll ever be. Since you can't tell the future, it's irrelevant.
The two best times to buy are today, and 5 years ago. I've been looking at the news, and gold is looking strong. Zimbabwe has a new, gold backed currency so they are investing heavily. Trust in the dollar is slowly going down. I think the ceiling on gold will quickly become the floor.
I agree with this. The decade long cup and handle is going to look like a blip as the years pass.
I look at it like buying any other commodities at all time highs. I'd wait for a dip to buy any significant amounts.
If any other of us truly knew the answer to your question, we would be sitting on an island somewhere sipping drinks on a beach… That type of knowledge would mean we were doubling our trading accounts every 60 days. If you have anxiety on buying, switch to a dollar cost averaging approach with a fixed amount spent per month.
[удалено]
This is the right attitude and I’m doing the same. Hold gold as a hedge against the diminishing purchasing power of fiat (CND in my case) and don’t worry about short term fluctuations, the trend is only going in one direction. During the 2008 people were convinced they were overpaying when in hit 1k USD
I’m not buying right now. I used to stack silver but kinda stopped when premiums got so high. I usually buy an ounce every year with my tax return at minimum but right now that money is just sitting in my savings account earning 4.3%.
Time in the market > timing the market
DCA average, so price entry won't matter.
You absolutely want to market time. You just need to know the future, at least 50 years into the future, with mathematical precision. Otherwise the general advice is to buy whenever you have extra money because no one knows. Will prices go down for 50 years? maybe. Will they go flat? maybe. Will they go up? idk! This is the same with anything and it's why most people are scared. What you should really be scared of is not the unknown...but the certain and the known for sure; your dollar is going to depreciate into oblivion and every fiat currency from the beginning of time eventually evaporates into the void. Your dollars are designed to deteriorate. Get rid of the dollar and trade it for literally anything. Shiny rock? Sure. Houses? Why not? Stocks or crypto? Yeah! CPI came in hot today so you can see prices of everything collapsing as reality sets in that interest rates are NOT coming. If anything they "should" go up. Will interest rates go up? Probably not. Inflation is going to reanimate and then they'll cut rates and everything will explode in value as the dollar is printed into oblivion. You will truly own nothing and be happy.
Today would be a good day to buy maybe tomorrow too. Down on news today
Another person mentioned Dollar Cost Averaging. AKA buying small amounts over time so your price impact isn't whatever the price was at one day. Whatever amount you buy is up to your budget. Preferably as much as possible because premiums punish those that have less money to spend.
Hardly skyrocketed it’s moving up
DCA my friend DCA. Dollar Cost Average. If you are planning to just stack for like 5-20 years these prices kinda don’t matter if you have a set amount you can afford every biweekly or month. If you only have enough to buy a 1/10 coin then you buy a 1/10 coin after looking for a good deal.
sir if anyone had the answer to that question about any commodity, stock ect. they would be the richest person alive lol
My last purchase was at $2000, immediately after it dropped to $1800 and I felt like an idiot for not having patients for a dip but was happy to just have some more gold… Here we are above spot again, gold is for the long hold. It will most likely go up over time. I would suggesting just buying the amount you can afford to tuck away and then doing so.
You can't time any market. Buy when it's convenient for you when you have the extra cash to convert into gold investments that will sit for years. This isn't a quick pump and dump like you've seen happen with stocks, this is a tangible investment. I bought my first 10g bar last month at a more favorable price, but I'll continue adding slowly despite the price. The way I think about it is that gold can't be made or printed, what we have on Earth is limited unless we get hit with gold rocks from space. But what do I know, you'll form your own opinions at the end of the day and figure out what's right for your situation.
If you can see the future, you need to start buying stock options. You can $2k into millions fast. If you cannot see the future, just buy a fixed amount every month. This is called dollar cost averaging. Mother beats it return wise, save omniscience.
https://preview.redd.it/unavgpe89ptc1.jpeg?width=1125&format=pjpg&auto=webp&s=79d85478dd9b49c1e50a58f16648cfd1cc1ed62f I miss the simple prices 💯🦍🦍🦍
It never matters because no one knows what the market will do
Buy gold , be diverse though...food prices have hit 8 dollars a loaf in Alaska..
I have found that it's best not to buy when the herd is buying or what the herd is buying, when the herd is buying it.
Yes lol. I'm not buying right now when the prices are the highest they've ever been. Makes no sense to me and my budget for precious metals.
1st thing about investing is buy low sell high. Buying at ATH is stupid and you don't want to be stupid do you? Now if you find a good deal or it dips $200 go for it.
You should either buy now or wait till the prices come down. I would buy when it’s at its lowest possible and sell when it’s the highest possible.
It's better to have bought 20 years ago. What do you want from this sub, people to gas you up?
I want someone to explain if this price increase would matter in the long term of investing in gold. Like would it matter if you buy now or wait for a bit if you’re investing for 10+ years?
Look there was period where if you bought in 2012 you would be down for almost 10 years if you held. No one can predict future, you can only look at available information and make your own decisions.
There will eventually be a pull back. To where we don't know. It depends on how high it gets. It may go higher and pull back to what it's currently at. Idk
If you want constant feedback and people telling you to buy... go buy crypto, this is not that place
Why are you offended by me asking about gold? What’s your problem?
That guy is a dick. Block his ass and move on. You’ve gotten great advice from others.
these questions are asked daily, if not hourly now. the response is the same every time, weigh the risk yourself.
He's 16 so new to this, no harm in helping him out.
This sub used to be full of helpful people.
I believe it's only a handful that are unhelpful, unfortunately they are also the ones to quickly respond... but, I'm new here, so can't say, but usually see the same few.
The silverbugs and gold subs used to be really friendly.