Sunday, March 21, 2010

Another would be gold rush...

Just a quick blurb on something thats been plauging my mind recently (mainly due to the nonstop comercials about it), why would one want to buy gold now? Gold is being advertized as the recession proof asset thats perfect for short and long term investors due to its relative stability and security and that we should all buy it right now because its dollar value has never been higher. It sounded like a good idea to me at first but I started thinking, and I began to wonder, if its more expensive now then its ever been...why would I want to buy it now. Its one thing to invest in something and expect it to turn you a profit but generaly one buys low and sells high. Ive never really heard of people buying high and then riding their investment to the ground. Also, if gold is desirable for its resiliance and stability, so that one could fall back on it in times of economic hardship, why would I want to buy gold during an economic hardship? Seems like those who didnt already have gold going into the recession already missed the boat on this one and should wait for prices to come back down. I could be wrong, just a thought.
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2 comments:

  1. Ekaterina VorobyovaApril 27, 2010 at 8:58 PM

    You make a good point. Purchasing a good whos price is high than it was before in a economic hardship is not a bright idea. That's like telling the public to purchase homes when the purchasing price is at its highest peak. That would not be a good investment because when you attempt to sell your home after some years pass, the value will go down.

    Selling gold that has reached the highest value than ever before in an economic harship on the other hand is, in fact, probably a good idea.

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  2. McLovinApril 28, 2010 at 5:19 PM

    The one thing about gold in my mind is that pretty much everyone has a piece of gold(mostly julery) but if you think about gold is going to be something that will go away and the people who have more gold will have the advantage. People want something and money is no option you can make a lot of money on old gold laying around

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