Is gold up or down?

A few comments I heard about gold make me worried.

While waiting in the bank, I overheard a bank officer telling the customer that gold price can only go up, and the customer smiles very broadly in agreement.

It seems that the bank officer and the customer are good friends, and they are having a lively discussion about gold investment.

After leaving the bank, I reached home, and login to a paid discussion forum.

One discussion thread is about the same topic.

The person started the thread say that gold price could only go up, and he did not want to miss the opportunity to make big money.



These two comments about gold can only go up are very worrying.

If everyone holds the same thought, then the days of gold crash is not far.

Is gold up or down?

Gold is generally more stable than silver price.

However, the recent uncertainties in the world are causing gold price to go wild.

Just when you thought that gold price could reach the heaven, it came crashing down.

When you thought that gold could go down further, a financial crisis in Europe caused the price to spring back.

It seems that nobody can really predict whether gold will go up or down in the short term.

However, in the long term, the trend is clear.

Gold is going up and will continue the up trend until the economy recovers.

Many investors have warned that gold is no longer a safe investment, since it is getting very volatile.

It is as if you are on a large ocean liner, and it heads into the storm.

If you want to buy gold, make sure you can sleep when it crashes.

Assuming that you buy a few ounces of gold at the rate of $1733 per Troy ounce, and a price crash causes it to drop to $1200.

It seems impossible, but everything is possible in the world of investment.

A sudden appreciation of US dollar definitely will affect gold price.

If a country sells the national gold reserve, the commodity will go into a free fall.

Many large institution investors are liquidating the holding.   Some might need to do that to lock in profits and cover the loss in stock markets.

Some might want to hold cash position, and some simply do not have much faith in the appreciation of gold in the short term.

To the small and large investors, gold is still a safe haven.  It may not be the best investment, since it is really out of reach of many people now.  However, in term of crisis, everyone will trust gold more than their governments or the currencies backed by the governments.

Is gold up or down? That depends on how you measure it.  It is very stressful to check the price every single hour.

Best to look into your own savings, and see how much you can afford to use for precious metals investment.

After you have enough savings to last for six months without a job, and you have enough to buy at least two ounces, then you can think about buying gold.

Use the dollar cost averaging method to buy, and to sell.

You can avoid buying at the peak, and selling at the bottom of the price range.