Is it too late to the party for gold to be a viable part of a portfolio?

RB1026

For an investor who doesn't currently have a large position in gold, am I too late to the party now that everyone is running to gold? Generally, in my life, I have done very well when I was a contrarian, OK when I am somewhat early and consistent, and horribly when I am late. As a guy who sold off his gold at $800 due to a divorce settlement it's hard to get fired up about gold at $1700+ yet it continues to perform.

Thoughts and opinions are welcomed and appreciated.

derryb

No if you think gold will continue to do well.
Yes if you think it has run its course.

You're asking if gold will continue to do well.
My opinion is yes.
Best you form your own.

pmcollectour

Buy the highs, buy the middles, buy the lows. It really doesn't matter. There is no evidence that shows anyone with any economic
sense that our current economic climate is about to fix itself. It's an incurable wound. If Europe and America can fix their economic woes, then I would say stay away from gold.

2ndCharter

If Europe and America can fix their economic woes, then I would say stay away from gold.



However, I don't see any evidence that the "powers that be" have any intentions of fixing the mess they created so, long term, Gold still has plenty of room to keep going up.

cladking

Gold is not in a bubble. It is very far from being in a bubble.

It is grossly undervalued but could become even more grossly undervalued.

I don't think it's ever too late for a collector to invest in gold. Yes, at these sharply higher prices much
more discretion is advised. I would suggest you put what you feel you can afford to lose into scarce gold
coins. Probably world gold that sells for about melt value that used to have big premiums are safest. Avoid
countries collected primarily by Americans and go for popular coins of major countries. This especially applies
to countries that have growing middle classes and a lot of collectors. I generally prefer modern for longer term
holds but something like a gem older British, Russian, and French gold can be relatively safe bets. Don't pay a
large premium unless the coin is simply worth it as a numismatic item.

Everybody should own at least a little gold but at this time after so large a run up it might be a good idea to
accumulate a little gold over a period of time.

pf70collector

I have a feeling all my MS and PF 70 Collector Modern Coins (the rare versions may lose all their premiums to rising gold). I have not been buying too much gold. Silver-yes-plenty of it.

jmski52

You have to ask yourself a question every morning when you get up - would I rather have US dollars or a hard asset like gold?

If gold crashes, you end up with an ounce of gold; if the dollar crashes (like it's been doing for 10+ years in a managed free-fall) you end up with a piece of paper.

The other ancillary question you have to ask yourself is - are the US's spending and debt problems behind it?

Someday in my lifetime, I can only hope that the answer to that last question is "yes". But it ain't now.

A good way to look at gold is: as a store of value. Not an investment that returns a yield. Ignore the nominal value in terms of dollars. Dollars are the illusion.

DrBuster

If you're skittish, silver plays....

TomB

I do not have longterm faith in the policies of the US or of the European nations. I feel more comfortable with a certain amount of gold and silver than simply cash. I continue to buy metals.

mrearlygold

Gold is not in a bubble.

agentjim007

The higher gold goes the lower the premium for US gold (you don't have to buy foreign to get gold near melt). Here is a slabbed type 2 $20 near spot. .96 oz. gold but a 4% mark up ain't bad. CLICK

mrearlygold

Now if Ron Paul were to be elected I think you would see gold take a real hit. The dollar would see almost immediate strength because the world would know that for the first time in over 100 years they would see a serious reduction in the size and intrusiveness of the US Gov. They would know that America is about to get it's fiscall house in order and they would be RELIEVED that finally that last bastion of liberty and real freedom is being RECUCITATED and brought back to being that shining city on the hill, the envy of the world .

The dollar would strengthen and because the spending would be chopped down down down and taxes would be chopped down down down along with it, suddenly it wouldn't be Asia or communist china that the world would be looking to anymore but America..........as it should be.

But if any other rep gets in or stays in? Well, I'd say the party has a ways to go.

CoinCoins

Ron Paul 2012

coinkat

There are gold stocks
bullion
gold coins
world gold coins
rare world gold coins
rare US gold coins

There are plenty of options

SkyMan

IMO gold is a viable part of any portfolio. Realistically the question is, "how large a % of your portfolio do you want to be in gold?". I have some, but not a huge chunk, because I believe a more viable play on inflation is to buy dividend bearing oil/natural gas stocks. You get inflation protection, dividends, and an underlying asset that is being used up. OTOH I do own some small percentage of gold.