new to GCA with a topic to discuss

[benyy86]

Hi, how do you judge if it's the right time to buy the gold/silver item that you have been waiting to purchase? Do you buy when you have saved enough or you have your own analysis to judge if the metal is overpriced?

[preciousmetalscheng]

Hi there! Being a recent collector to precious metals myself (2 years plus), I have learnt to ignore the prices to a certain extent and purchase precious metals as and when I can afford it.
I bought some gold when it was USD$1170 and it was considered expensive then but now many would say that it is cheap.

Whether it is cheap or expensive is very relative and over 30-40 years if you purchase as close to spot as possible, they should even out pretty nicely.

[GoldScaraB]

It all depends on how long can u wait to have the gold/silver item u have been eyeing for. Price is relative to the person willing to pay for the goods.

[BlackRozeInc]

Hi,
i personally feel that is very difficult to really gauge the "correct time" to buy. Ive bought in when i felt that prices were rock-bottom only to find that the spot-price went even lower. So instead of trying to pin-point the lowest spot, ive decided to average out the price by buying regularly. Overall the average price of your silver or gold, will be low.

[desumon]

Hi all!

I just finished reading a book by Mike Malony on gold and silver. It seems the general idea is precious metals will always appreciate due to inflation. If govts are always printing money, how come gold has been dropping for the last few years? Please enlighten me....

[windsurfing]

Don't think anyone can reply with absolute certainty. Even though govt is printing money, no one can really say when the 'party' will stop, since they can technically continue forever. It could continue for another year, 2 years, 10 years, or maybe end next month.

One textbook answer would be that since interest rates have been kept low, more money flow into the economy--> better market returns --> Gold seen as less attractive since it doesn't generate cashflow. Of course, this can't explain the very volatile movements we've seen since 2013

[GoldScaraB]

Originally Posted by desumon

Hi all!

I just finished reading a book by Mike Malony on gold and silver. It seems the general idea is precious metals will always appreciate due to inflation. If govts are always printing money, how come gold has been dropping for the last few years? Please enlighten me....

The question you ask is not objective to warrant a definite answer.
Gold has been rising since QE1 & QE2, not rising in operation twist and begin to fall since QE3.

QE from any central banks increase the supply of money, the money is used to fulfill the treasuries promise. Banks sells the treasuries to corporations & large investors in promise of a yield return. Base on yields, interest rates are calculated. Savers & loaners are tied to interest rates, which in turn contribute to the velocity of money. Demand of money is low, consumer spend less regardless the reasons, prices of goods stay low & vice versa.
Increase in money supply may result in price inflation in terms of the currency & goods. Therefore if gold valued is 1000 and inflation occurs, for gold to retain the value, won't it have to go to 1020 at 2%, but factoring cost of total inflation process gold can be at 1100. (going thru minners,transport,refiners,brokers,retail etc)

學而不思則罔，思而不學則殆。
To study and not think is a waste. To think and not study is dangerous.

[pika]

Buying insurance got good time to buy or not? LOL

[GoldScaraB]

Alternatively, you can don't buy insurance b'cos no one can force you to

[Regular_Joe]

Buy insurance also must compare premiums