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As Long As Skepticism Abounds, I’ll Buy More Gold

13 May 2010 4 Comments

As the video above discussse, many still question whether or not buying gold is a smart play considering the run.  For me, as long as the majority of investors are skeptical and refuse to buy into the idea, I think it’s a good time to buy.  When your taxi driver starts to recommend buying gold, then you’ll know it’s time to sell (taxi drivers were recommending stocks in 1999-2000).

If you were to ask 10 people on the street if they own gold, you’d be hard pressed to get a single yes in my opinion.  I think these are still signs that the gold run will continue.

With that said, this doesn’t mean gold won’t have its down days and definite volatility.  It will.  But, I’ll be using those as opportunities to accumulate more.  This is a long term trend that is still definitely fundamentally sound in my opinion.  The unraveling of currencies and massive risk associated with sovereign debts around the world is just beginning.

For the record, I like silver too and if you’re like me, it might be tough to find $1200 to “buy” a single gold coin.  You can accumulate some nice physical silver for much less.

4 Comments »

  • Stephan said:

    i hate to say it but i completely disagree that gold still has a ways to go. I think the run on gold will end in short time, and as the global economy recovers(it already is), gold will drop and you will have wished that your money was in foreign funds, especially emerging economies that have done really well even through the recession.

  • 20smoney said:

    Yep we basically have two opposite predictions… we shall see..

  • 20smoney said:

    And please don't hesitate to disagree in the comments… i enjoy opposing views.