Is Now the Time to Invest in Gold?
In case you haven’t noticed, the Canadian dollar is worth more than the U.S. dollar. We expect such things from the pound and the euro, but from the loonie? And what happens when the dollar tanks? Well, gold becomes the safe haven. If you chose to invest in gold a couple of months ago, you’re probably very happy right now.
But it is a good time to start a plan to invest in gold? There’s the question. The gold bulls will tell you it’s always a good time to invest in a safe haven rooted in something represents something you can actually touch (paper currency, of course, merely being the representation of an idea of value, rather than something cold and hard and tangible).
On top of which, some analysts are starting to predict that we could get $1,000 an ounce gold by the end of this year or early next year. So if you invest now, and gold does go up that far, you’re still in great shape. And if you have a long term investment window, even if it falls, something like gold is unlikely to fall too far.
That said, it is important to remember that gold prices can be rather volatile. If oil prices sudden take a dive (it could happen), or if the dollar recovers, gold prices could drop. If you’re using gold as a short term investment, that could mean a loss, especially if the drop brings gold back to the mid-$600 level it was at not that long ago.
Over the long haul, I like gold. It generally appreciates, and if you have the risk tolerance, you can ride out the price volatility.
Disclaimer: I am not an investment professional. You make any investment at your own risk, and there is always the risk of loss. Consult an investment professional and/or do your own research before making any investing decision.
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1 opinion for Is Now the Time to Invest in Gold?
Gold Rising Again on the Commodities Market - Money & Investing - Banks.com
Mar 25, 2008 at 12:20 pm
[...] you agree? If so, now is the time to invest in gold. Active traders will want to invest and hold until they’ve made a hefty profit, and then take [...]
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