Ive been looking at a precious metals mutual fund and its been doing really well for the past few years. Ive heard that precious metals are good to invest in during war time, and im pretty sure were gonna be at war for a while. Any body know if its actually a good time to invest in precious metals?
8 thoughts on “Is it a good time to invest in precious metals?”
A good time would have been three years ago. Now is the time to invest in the S&P 500. It has performed very poorly for the past 5 years. It appears to be coming back to life in the past 3 weeks.
I think, but I could be wrong, that that will be a better investment for you.
The large move in gold and other precious metals has already occurred IMHO. It is not a bad idea to have some metals exposure as part of a well diversified portfolio, but I would limit my metals exposure to less than 5% of your overall portfolio.
I’m not sure about metals but if you are looking for investing ideas, I would suggest looking at http://www.top10traders.com – the site lists out the best performing stock portfolios. You can also create your own portfolio with $100,000 in “play” money. The site is totally FREE. If you want to find out who is having a lot of success in the market, just look at what the best traders are buying. Good Luck!
Contrary to most other people who might post, I think it is an OK time. You have to plan to hold at least a year. I normally hate paying loads for funds, but I did pay a load to buy Franklin Templeton Gold and Precious Metals, and that fund is up 70% from when I bought it. It was up 100% and I sold half, so I am playing with their money. i think the percentage profits you could make are probably lower now, but I still think 10-15% of your portfolio in gold and precious metals is a good idea. I certainly would not put all your money in it. Good luck.
there are 2 situations when one should invest in precious metals.
The cost to get gold out of the ground is approx 235USD per oz, gold hit this a few years ago, when it does that, the south africans start to close the mines to restrict supply and up demand, hence, price goes up.
The other time to invest, is in Palladium, over 80% of the worlds palladium comes from Russia, when the various banks around the world want some of there debts repaid by Russia, the russians put an embargo on the export of palladium, thus, the same thing happens as the south african gold.
Watch carefully on the rise, and dont get greedy!
It depends on the time frame plan on investing. Where we sit today, gold has fallen nearly 20% since May. Conversely, it appears that gold, silver, palladium, and even the basic metals seem to be finding a new foot hold. This doesn’t mean that the precious metals can’t go down further but over the short term I would expect a bullish bounce or at least have it stuck in a holding pattern. What you should watch is the Fed policy meeting this week. If the Fed gives indication that they may start to raise rates again, stay away from the metals as focus will be on the US dollar and bonds. If they don’t change their verbiage or indicate further cuts, then I think your metals will find a foot hold. Watch oil as well, oil and gold have been very tightly co related. If oil continues to fall ,gold will too, if oil goes back up, oil will to.
Either you’re real smart, looking to “Buy low,” or oblivious and lucky.
The metals are in a horrible Downtrend currently, but it can’t go on like this forever, so many are beginning to look for a bottom, or at least a decent bounce. Playing the retracement is more of a trader’s game; who knows where the actual bottom will be? But this huge decline has left a wide margin.
You’re probably a little early. But of course, you want to get in before the whole Civil War breaks out, or before any huge currency crisis.
Keep an eye on the US Dollar. Gold moves in opposite directions, and in the same direction as oil, generally. But if the Fed raises interest rates again tomorrow, or this year, that will throw everything out of whack.
If and when gold pushes back up through $600/oz will put it back in play.
No, it’s not a good time, stay away from commodities as inflation is now considered under control. The federal reserve has stopped raising interest rates, which means its a good time to purchase either bonds or stocks, since there is currently a stock rally going on. The hot sectors are retail and finance.