Gold-good investment or hype.

[CrackerJax]

The problem with TIPS is they lock you into the dollar. Not a place I want to be locked into right now. Most are fleeing the dollar for long term investment.

Not to mention the govt. "fuzzy math" when it comes to pegging them

 

[doc111]

I tend to agree with those of you who think that gold is overvalued now.
If it pulls back to about $900 or so it would make sense to take a position. I think physical possession makes sense (coins or bullion only as opposed to Mutual Funds or ETFs)

Another good inflation hedge I have been recommending for several years are TIPS---
Treasury Inflation Protected Securities.
These are US Treasuries which are pegged to the CPI...the principle of the Bond increases proportionately with the consumer price index.
I have some strong reservations however about the creditworthiness of US treasuries at this point in time.
We truly are sailing uncharted financial waters with the wiz-kids we have at the helm of our ship of state.
Caution and diversification are more important than ever in the investment game.

I'm not too familiar with these. I may have to look into it. Caution and diversification indeed.

 

[Wavels]

CJ is correct in his critique of TIPS... treasuries have historically been considered the gilt edge safe harbor vehicle.
The dollar is in for a drubbing.
I attribute the negative pressure on the dollar (this downward pressure is twofold... inflation and devaluation)
to the reckless spending now underway by the dunces currently imperiling our future.
It seems to me that there must be some malign intent at work here!

 

[CrackerJax]

Yes, I agree Wavels.

The current admin isn't fixing the economy. They are consolidating power.

Right now, we are all on the sacrificial altar of left wing politics.

There is no economic logic in play by the govt.

One of the reasons China is pissed at us. That last trip for Obama was an embarrassment for all of us (those of us paying attention that is).

 

[Wavels]

Oh I forgot, in the interest of full disclosure: I used Tips as the foundation upon which to build my own retirement plan...
If I sound bitter, it is because I am!

 

[CrackerJax]

... and then ...

 

[Wavels]

... and then ...

All is not lost, I started buying gold back in 1982 and I have a very low cost basis.
However, hindsight being crystal clear, I wish I had purchased more. I will not buy at current levels.
I have been considering buying some Yuan denominated bonds in order to offset the decline of the dollar...but I have not done the research necessary to make a sound investment. I have time constraints, because...
I am working too much because the greenback is under assault!
Yikes,I never thought I would live to see the day when I lose confidence in the dollar!

 

[CrackerJax]

well, there is pressure on both sides of the ocean that may get the Chinese to revalue the yuan.

I really like South Korea right now. Japan is right behind them and in time I see Australia kicking in as the Asian rim solidifies financially.

One man gathers what another man spills.

 

[Wavels]

well, there is pressure on both sides of the ocean that may get the Chinese to revalue the yuan.

I really like South Korea right now. Japan is right behind them and in time I see Australia kicking in as the Asian rim solidifies financially.

One man gathers what another man spills.

Outstanding points.

When an investor ventures into the international arena there is an additional risk factor to consider, that being political event risk...unforseen political events can occur which may seriously impair your anticipated returns.

I think CJ is spot on regarding Australia.
Too bad that I no longer have the time to diligently conduct the prerequisite research in order to minimize the inherent risk!

 

[CrackerJax]

unforseen political events can occur which may seriously impair your anticipated returns.

=================================================================

Just the international arena?

I suspect Asian investors are saying the same thing about the USA.

I wonder who's more accurate in their risk assessment ...

 

[Wavels]

unforseen political events can occur which may seriously impair your anticipated returns.

=================================================================

Just the international arena?

I suspect Asian investors are saying the same thing about the USA.

I wonder who's more accurate in their risk assessment ...

Ahaa...therein lies the rub...The USA was considered to be immune from this type of unforseen event risk... and then along came Obama who has made an unfortunate event ( Bush's overspending)
into a truly calamitous set of circumstances. At the very least Obama is engaged in gross dereliction of his duty to protect and preserve the Union.
We are indeed in dire straits.
It saddens my heart.


Apologies to doc for the thread jack!

 

[CrackerJax]

Ur post is related to the stock market tho. Obama has affected it negatively.

Using any other economic recovery plan would have yielded better results. Much better. Then we wouldn't even be talking about dumping our investments in dollars.

I'm about out of dollars completely now. I am keeping three properties in the USA, but almost everything else is already out there in the global exchanges.

Funny, I was never a boy scout.

 

[Wavels]

Ur post is related to the stock market tho. Obama has affected it negatively.

Using any other economic recovery plan would have yielded better results. Much better. Then we wouldn't even be talking about dumping our investments in dollars.

I'm about out of dollars completely now. I am keeping three properties in the USA, but almost everything else is already out there in the global exchanges.

Funny, I was never a boy scout.

LOL I was a boy scout, and you are better prepared than I.

I did not envision what is rapidly becoming much worse than my projected worst case scenario!

Rats!

 

[CrackerJax]

I was making major moves last June.

Now, I'm all but packed.

Waiting ... watching ...

 

[12bonsai]

I have a little trouble with the "Gold Investment Companies" and how you basically get a certificate saying that you own X number of ounces of gold. There have been quite a few of those companies pop up almost overnight too. Seems a little sketchy to me.

Do not and I mean do not ever buy a certificate.....Always buy physical gold and hold it yourself....

If that company who promised they would hold your gold for you and give you a certificate goes bankrupt then you will be holding a worthless certificate....Same as dollars worthless.....

Who knows those companies could be holding those lead filled gold plated bars and be selling you a certificate....

 

[12bonsai]

I tend to agree with those of you who think that gold is overvalued now.

The dollar is going to pot not really pot but down....As the dollar goes down gold will retain it's value and go up....Anything else will follow the dollar DOWN.....There is no time to be fooling around with this or that bond or heaven forbid treasury note....Or even stocks....Buy gold and silver and sit on it you would be many times better off in the future....

 

[CrackerJax]

Never buy on historical highs ... that's a suckers game.

 

[redivider]

investing in gold is not a bad idea. but the investment should not exceed 20% of the total worth of the individual. you should only invest in gold if you have enough liquidity to comfortably absorb the loss you could incur if that gold is stolen/lost etc. you must also keep it in various safety deposit boxes, never ever at you're house.

get familiar with how gold is bought and sold, it's not as simple as mailing the gold in like you see on tv....

 

[NewGrowth]

I bought some gold, I can hold $10k in my hand now. I like that level of security kind of as a last ditch effort I still have gold that retained some value.

 

[redivider]

you can hold what you think is $10K worth of gold in you're hand right now.

gold does retain value so you're good there...