Wednesday, August 10, 2011

Gold at 1800 dollars and ounce plus

The problem with anyone buying gold now is that likely by next June Gold might be selling anywhere from 1000 dollars and ounce to 2000 dollars an ounce or more. It's just very hard to say. In this market gold will tend to rise to 2000 dollars an ounce by Christmas. But what then? Likely it could then drop (if things begin looking up again in worldwide markets to 1500 or even 1000 dollars an ounce.

So, if you are a part time or full time day trader for example, you might buy gold now and sell it at 2000 around Christmas or sooner if that happens. But after that, you might lose your shirt if you buy it at 2000 then or whenever in this market. The likelihood of Gold going to 3000 is extremely unlikely without a crash like the one in 1929 or something like that worldwide. So if you are a long term investor like me now is not the time to be buying gold because a long term investor likely is going to lose money on gold bought at 1800 to 2000 an ounce. But in the end who knows in this market. This has to be one of the craziest markets worldwide right now that I have ever seen in my whole lifetime. And I'm 63 years old!

No. Unless you are a day trader (full or part time) if you are buying gold now you might be expecting the end of the world as in 2012. And there are many apocalyptic people around the world right now. And it is important to know that they are also influencing the worldwide markets by what and when they buy and sell. It's a really crazy time worldwide!

However, if you have done all your research and invested for the long run (10 to 15 years out) then likely you will be fine if you are diversified correctly and only make very minor adjustments to your portfolio worldwide as time goes on.

note: the price of gold per ounce at the time of this writing is: $1805.0542 per ounce of gold.

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