Buy Gold!

[Davaoeno 38,100]

 

Only time will tell if my decision to buy today was correct, but I invest with the Warren Buffett mantra, "buy steak when it's on sale" !! Buy when everyone else is jumping out the windows. If I have to hold for a year to get a 30% gain I will. That's alot better than any TD, ETF, bond, ect is paying these days.

 

 

on the other hand you might have to hold it for 10 years to break even  !!

[Skywalker 19,177]

The fact that gold has fallen to a 3 year low doesn't mean it's finished falling.  It's still too high in my view.  I remember when it was 750, and I thought it was high then!

[Contango 659]

The fact that gold has fallen to a 3 year low doesn't mean it's finished falling.  It's still too high in my view.  I remember when it was 750, and I thought it was high then!

Global average production cost is around $1100 USD an ounce....at $750 there would be only a hand full of mines still in operation and they would be producing at break even and or selling into a (higher price) hedge book.

 

$1100 USD should prove to be some kind of floor IMO

[passingby 239]

For those interested ask yourself these questions -

1.  Why if GOLD is not of much use (which some here seem to think), why are the central banks for some countries such as India, Russia, China and others buying GOLD by the ton?

2.  While the SPOT price may be for example $1200 you cannot go into most coin and gold dealers in the west and get one ounce of fine gold in a bar or coin for that price!  There is a large premium plus the spot price.  Look at bars and coins for sale on ebay (just for educational purposes but due care must be used if purchase of these items there)

3.  Why are there lines at the Thailand gold shops if as so many people in the West think it has no lasting value?  In many "Asian / Eastern" countries GOLD is a medium of exchange and a way to accumulate wealth.  

 

Guess it all comes down to your personal feelings on how you want to secure your long term future.  Do you want a long term asset which may go up and down in price but in a financial emergency will have value outside of the country monetary system of paper money which has no substantial backing OR an asset which can be traded outside of the official system.  Look at it like your house which is an asset and your house has gone UP and DOWN in value but it retains some value even when prices are down.  All your surplus assets in GOLD and precious metals, NO - but might be worth considering some percentage of these assets in metals as a way to diversify your support network. 

 

Most of us from "Western" countries are so used to the paper money thing, and use of the ATM and credit cards, But I refer you to the discussion on EMP which was in this forum some time back AND the increasing currency controls some countries such as India have imposed or could impose on its citizens.  IF God Forbid there should be some kind of EMP or other event that upset the internet how would you get your money transferred?  A few small gold coins or 1oz bars might keep you in good shape while your neighbor is cursing the non-working ATM.  It will never happen you say - great - but a little diversification never hurts.  Selling gold in the Philippines is different from the more "Chinese" side of Asia but it can be done but that is a subject of a whole new topic.

[Brucewayne 3,803]

For those interested ask yourself these questions -

1.  Why if GOLD is not of much use (which some here seem to think), why are the central banks for some countries such as India, Russia, China and others buying GOLD by the ton?

2.  While the SPOT price may be for example $1200 you cannot go into most coin and gold dealers in the west and get one ounce of fine gold in a bar or coin for that price!  There is a large premium plus the spot price.  Look at bars and coins for sale on ebay (just for educational purposes but due care must be used if purchase of these items there)

3.  Why are there lines at the Thailand gold shops if as so many people in the West think it has no lasting value?  In many "Asian / Eastern" countries GOLD is a medium of exchange and a way to accumulate wealth.  

 

Guess it all comes down to your personal feelings on how you want to secure your long term future.  Do you want a long term asset which may go up and down in price but in a financial emergency will have value outside of the country monetary system of paper money which has no substantial backing OR an asset which can be traded outside of the official system.  Look at it like your house which is an asset and your house has gone UP and DOWN in value but it retains some value even when prices are down.  All your surplus assets in GOLD and precious metals, NO - but might be worth considering some percentage of these assets in metals as a way to diversify your support network. 

 

Most of us from "Western" countries are so used to the paper money thing, and use of the ATM and credit cards, But I refer you to the discussion on EMP which was in this forum some time back AND the increasing currency controls some countries such as India have imposed or could impose on its citizens.  IF God Forbid there should be some kind of EMP or other event that upset the internet how would you get your money transferred?  A few small gold coins or 1oz bars might keep you in good shape while your neighbor is cursing the non-working ATM.  It will never happen you say - great - but a little diversification never hurts.  Selling gold in the Philippines is different from the more "Chinese" side of Asia but it can be done but that is a subject of a whole new topic.

 

Is it legal for a foreigner to own gold (other than jewelery or electronics) in the Philippines?

[passingby 239]

Legal to own gold - most likely not as a gold shop business but a few coins and bars yes the only hitch being bringing them IN through customs.  Remember there are tons of Koreans, Chinese and others from countries where gold is a monetary item and I am sure those who are resident here have gold as a back up.  Gold bars and coins are sold by mainly Chinese gold dealers in Manila to anyone who walks in with cash.  They will buy gold also but with the gold plated tungsten bars now floating about a dealer often will drill a bar to see what is really inside.  Gold chains and rings are the easiest forms to sell.  You can wear your 10 baht weight chain in as personal jewelery.