So is now the time to go and buy some gold?

[pinkpanther99]

I know nothing about this kind of stuff so please be kind...

My question is all hypothetical and I'm not actually thinking of buying but I am interested in a discussion on the subject.

Anyway after reading about the Baht and the price of gold this morning, would now be a good time to go out and buy some gold?

At what levels are you likely to see returns, if at all?

If one had say 50k to 100k Baht laying around is that kind of money enough to ever see any kind of decent returns if/when the price of gold rises.

In your opinion, do you think the price of gold will increase any time soon of will it fall further still?

[lovelomsak]

I feel it will drop further. The world is going through major changes in the monetary system. Gold may lose much of its value in backing currencies so also lose apparent value. I feel currency values are headed to being backed in other ways. Perhaps by % of world trade they maintain,or god forbid their oil reserve.. So gold can become a valued thing of the past.

[NeverSure]

I don't buy much gold and I certainly can't predict the market especially not balanced with any exchange rate. I don't know if now is a good time to buy gold for you.

Every day is a good day to invest in something you understand, and in which you believe for future earnings. It probably will never be a good time to invest in something you don't understand. There are some big players out there just waiting to snatch up your money. Investment brokers are on top of my list of those people.

Cheers.

[Brit_Doggie]

the time to buy gold has passed away as long as 3 to 4 years ago was the time to buy but not now that it is going down.

Good news indeed.

Edited July 25, 2015 by metisdead
Bold font removed.

[connda]

There are a lot of folks with different opinions. Many of the pro-gold crowd also sell and trade gold. That's a built-in bias.

Also, what is really going on under the covers of the banks and regulatory agencies isn't something that you and I are privy to. That puts us at a disadvantage.

Check out Kitco.com for a pro-gold source of info.

Then check out someone like Harry Dent Jr to get the other side of the picture. http://harrydent.com/

Or just go out and buy a nice piece of gold jewelry that you like, plan to keep it for the rest of your life, and don't worry about the economics. That's probably the best advice.

[asdecas]

No, hedge funds have just gone net short on paper gold. Plenty of downside yet.

[kennalder]

No, hedge funds have just gone net short on paper gold. Plenty of downside yet.

Just like they were hugely net short Wheat about 6 weeks ago. Once the market turned up due to weather, they were all forced to cover and a huge short squeeze rally ensued in a matter of 10 days or so. The point is, hedge funds are mostly blind trend followers. There is a saying in the commodities markets that actually applies to life: When everyone is thinking the same - no-one is thinking.

I play in these markets, and my own personal strategy is to wait for about 1040 and then sell December 800 puts for about $300 or so. (depends on how quickly it happens what you will get for an 800 December put). To win using this strategy gold must be above about 780 on Nov 24th, 2015. (770 is about BE point depending on commissions and actual premium collected,) In any case you can be well over 200 dollars too early and still make money.

Of course the OP probably is not interested in this kind of strategy, but he was looking for opinions and there is mine.

As a side note, I once visited a guy back in the late 90's that bought a bunch of silver bullion during the Hunt brothers attempt to corner the market. His purchase price was just under $50. He held it all the way down to 4.60-ish, swearing he would make a profit "someday". I bet he is still using an ingot as a paper weight to this day, despite having had a single chance to make a nominal albeit small profit a couple of years ago.

If you want to buy something for the satisfaction of holding it until you die, it really doesn't matter what price you pay. If you want to make money doing it, then "buy and hold", may not be the smartest move.

[suzannegoh]

Wait for $750/oz. But do buy, otherwise you are a sheeple and ineligible to be a libertarian.

Edited July 25, 2015 by suzannegoh

[stoli]

There is no currency currently that I am aware of that is backed by gold. That is a thing of the past. The price of gold now is cheaper than the price of production. If the jewelry market runs out of the availability of gold, (very unlikely to happen given the world surplus), it would naturally go up as producers would need more. If you want to buy it to look at it, and it makes you feel secure and happy, go for it. Just don't do it for an investment at this time.

[slipperylobster]

gold as a metal is one thing.

gold as jewelry/art...is another.

if you are buying gold for future earnings, don't buy a fancy gold necklace. just get a hunk o gold....as pure as possible, and hang on to that. Might be a long term investment.

Anyways...it will always have some kind of value.

Edited July 25, 2015 by slipperylobster

[impulse]

Lots of downside on pretty much all the commodity metals, gold included.

[norbra]

With an impending rise in US interest rates...sell gold buy US$

[nidieunimaitre]

There is gold, and there is gold jewelry.

Does anyone have an estimate of how many baht worth of gold there is in say 100,000 baht of jewelry?

For sure, in Europe buying jewelry as an investment in gold would be ridiculous.

[muffy]

When the next wars start gold will shoot up .

[Briggsy]

If you are bearish (pessimistic), e.g. you see economic crises, currency crises, political crises, stock market crashes, economic depression, then buy gold.

If you are bullish (optimistic), e.g. you see the stock markets growing and economies doing well, political stability then don't buy gold.

[Estrada]

Prediction is $850/oz by end of year and will likely fall a lot further in 2016, possibly to $400/oz. Gold is a safe haven in time of crisis so wait for the next global stock market crash, which is likely to happen in 2019, then buy.

[impulse]

Prediction is $850/oz by end of year and will likely fall a lot further in 2016, possibly to $400/oz. Gold is a safe haven in time of crisis so wait for the next global stock market crash, which is likely to happen in 2019, then buy.

But I won't have any money after the crash...

[Ghostnigel]

I just bought a stash...no chance of selling it even if i wanted!! Thai women

[Estrada]

There is gold, and there is gold jewelry.

Does anyone have an estimate of how many baht worth of gold there is in say 100,000 baht of jewelry?

For sure, in Europe buying jewelry as an investment in gold would be ridiculous.

Genuine Thai Jewelry is 96.5% pure. As of today's Gold Bullion Price your B100,000 worth of jewelry is 5.59 Baht (2.69 ounces of 0.08kgs)

[Paul Laycock]

I purchased gold 11 years ago, my bank looks after it for me and pays me Baht for the privilege of keeping it safe.

Buy it and forget about it, don't think of a quick term investment if you can afford it.

[nidieunimaitre]

There is gold, and there is gold jewelry.

Does anyone have an estimate of how many baht worth of gold there is in say 100,000 baht of jewelry?

For sure, in Europe buying jewelry as an investment in gold would be ridiculous.

Genuine Thai Jewelry is 96.5% pure. As of today's Gold Bullion Price your B100,000 worth of jewelry is 5.59 Baht (2.69 ounces of 0.08kgs)

What I meant is, how much out of that 100.000 baht is labor (etc) cost?

In Europe that would be so much, that it makes no sense to buy jewelry for the gold content - yet many people do so.

[suzannegoh]

I purchased gold 11 years ago, my bank looks after it for me and pays me Baht for the privilege of keeping it safe.

Buy it and forget about it, don't think of a quick term investment if you can afford it.

Agreed, you can never lose on gold because when it goes down it is only manipulation.

[IAMHERE]

The low for gold in the next 18 months or so is going to be $888 US. That will be around 15,000 baht per baht weight of gold. Weight at least until it gets down to 15,555 baht per baht. That baht amount is figured at 35 baht to the dollar.

[impulse]

I purchased gold 11 years ago, my bank looks after it for me and pays me Baht for the privilege of keeping it safe.

Buy it and forget about it, don't think of a quick term investment if you can afford it.

Agreed, you can never lose on gold because when it goes down it is only manipulation.

Or a correction on the manipulation that created the bubble since 2005...

[max72]

the time to buy gold has passed away as long as 3 to 4 years ago was the time to buy but not now that it is going down.

Good news indeed.

So your tactic is buying expensive and selling cheap.Very smart indeed.

[max72]

Remember that gold has no yield. You can buy it hoping the price will rise but you can't rent it. Also gold has very little intrinsic value, most of its value is given by us as fancy material, but its use in China and India is declining now and the time it was used to back currencies is also over.

I would wait longer before jumping into gold. the USD will probably be strong for 2/3 more years.

[Mudcrab]

buy food and/or water.....guaranteed to appreciate over time

[canarysun]

Everybody is different but i wouldn't buy any gold or invest it in anything! Life is too short.So my advice is to get outside and enjoy the adventure exploring Thailand and having a laugh on the way!

Farang Jaidee x

[impulse]

buy food and/or water.....guaranteed to appreciate over time

Strange. I bought some bananas last week. Judging from the smell, they did not appreciate...

Is that a money back guaranty, or a clever advertising ploy?

Edited July 25, 2015 by impulse

[SGX]

Gold will continue to fall this year, expected price sub $1000

You dont have enough to warrant any concern on price.

When China India Russia increase Gold buying again. You will see a short cover in the paper.

Yes Gold is no longer a reserve but given the amount of money being printed , Theoretically, gold standard can come back , Gold is always tradeable.

North Korea amongst other proven resources is holding the largest gold reserve in the world. Nk will be a rising power. (do your research if you think otherwise)