Gold hovering near 18-year high

[n5gooner]

http://news.bbc.co.uk/1/hi/business/4450242.stm

watch this spot when it drops buy......

picture just in case you don't know what gold looks like

[ancient]

Gooner this is an important subject, but perhaps needs to be qualified.

Are you suggesting buying Shares in Goldmine companies or the metal itself?

Another dimension is this Bird Flu thing, e.g. if people can not go to work and the economy breaks down, then most equities (of all sorts - including oil) will be dead in the water.

Perhaps this (potential worst case Scenario) is driving the Gold price up?

If this Bird Flu thing was a driver then I would rather hold an investment in Metal, as I assume the miners will be suffering from the virus as well.

A 10% portfolio holding in Gold might be a good idea. In "normal" circumstances people suggest holding shares in Mining companies but in this case I think it might be better to invest direct in the the metal (e.g. bullion) itself. I believe it is possible to buy directly into metal via the stock market, but I do not recall the name of the Company.

People hedging against risk?

Perhaps Gordon Brown could do well to switch back to some of our bullion reserves he sold off for peanuts?

[n5gooner]

I think having a certain amount of wealth in a fixed assit is a good thing - gold - diamonds ect. because if there is a crash of markets, houses, etc.....you have a fixed assit that should be fairly stable.....(sorry for the spelling!!!)

[ancient]

I agree, Dont worry about spelling. as long as people know what you are trying to say that is all that counts.

We all are dependent on the spelling checker these days and this board ain't got one - well apart from Dodgy.

[n5gooner]

I agree

good well that make two of us - now just need the cash to practice what I preach so the OT I'm doing at the moment at home will help !!!!

[ancient]

Be Careful - tip from an old man

I remember in my early days of contracting the cash was gushing and I needed to invest it.

Gold had sank from 800 to 500 dollars, I was tempted at the time to put my whole stash in the opportunity.

Fortunately, I did not, only a couple of grand, now worth very much less due to 20 years after the fact and inflation.

Allways keep a balanced portfolio, asset class, e.g. equities (spread, value, growth), commodities, gold, property, cash, Bonds etc.

Learn the relationship between equities, bonds and commodities.

Study risk.

Never put all your eggs in one basket.

[AtW]

And what you going to do with gold - eat it? drink it?

[wendigo100]

Perhaps Gordon Brown could do well to switch back to some of our bullion reserves he sold off for peanuts

Brown sold at the bottom, and now you advocate him buying at the top?

One of the few consolations I have after eight years of Tony Blair is how he sold his Islington house at the bottom of the market, before the house boom started, and bought that other place at the top, just as London house prices started going down, costing him well over a million so far. However, as I laugh, it is a sobering thought that he and the rest of the jokers in his government are in control of our economy.

Remember, if opinion polls hadn't turned against him, Blair would have us in the Euro by now, and signed up to the constitution of a European state whose budget, according to its own accountants and auditors, is out of control.

So I wouldn't put it past Brown to do as you suggest - after all, he did use that gold money to buy into the Euro shortly before it dropped like a stone - but if he does buy gold right now it might be a signal for the rest of us to get out of it.

[n5gooner]

good point - NL Buy high sell low - well thats ok if it is a short trade, but in their case it was not a short trade.

[wendigo100]

You watching the cricket too, gooner? It's a bit early on a Sunday morning.

I've been up since four o'clock. I drove my daughter to school at five this morning for a school trip to France.