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Wow this metal is on fire. In the five minutes since I loaded the goldprice.org website, the value has increased $2US, going from $1369US/oz to $1371. That's crazy. There are some funds out there that track the performance of the mining companies and they have provided beautiful returns for investors.

So, should I invest and stay a while, or should I invest and then run for cover back in my money/cash bags when the fund starts to drop significantly (2008 type drop)? Interest rates aren't headed up soon and the economy isn't improving. People and gov't invest in gold during times of uncertainty etc. What are your opinions as to how high this commodity can go?

Now at 1370.67.
 

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Wow this metal is on fire. In the five minutes since I loaded the goldprice.org website, the value has increased $2US, going from $1369US/oz to $1371. That's crazy. There are some funds out there that track the performance of the mining companies and they have provided beautiful returns for investors.

So, should I invest and stay a while, or should I invest and then run for cover back in my money/cash bags when the fund starts to drop significantly (2008 type drop)? Interest rates aren't headed up soon and the economy isn't improving. People and gov't invest in gold during times of uncertainty etc. What are your opinions as to how high this commodity can go?

Now at 1370.67.
You want to invest now and then sell after a 2008 style drop? Doesn't sound very good to me.
 

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I'm currently up ~15%. No one knows where gold will go. You can choose to follow the trend or wait on the sidelines. My sell point is about 13% down from here, mainly because gold has really been on a tear lately.

You can wait and gamble that the price pulls back. It's up to you. I'm getting close to needing the trim my position to maintain allocation.
 

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Personally, gold doesn't do anything for me and I feel that gold is very expensive right now. And I can see it getting more expensive. To hold, store and buy physical gold is a pain. The gold ETFs are more convenient, but charge an MER.

My father in law went to sell his gold at Scotiabank downtown and there was a huge line of people trying to buy it. THey were running out and only had the coins available.

As an investor, gold is an alternative because:

Bond yields are low
Interest rates are low
Currency risks
 

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Gold is appearing expensive because the currency it is measured in (USD) is weak, and growing weaker by the minute.
Gold will continue to "appreciate" as long as USD keeps getting weaker.
Ditto for most other commodities like crude oil, etc.
Until the world as a whole comes to realize that the US is essentially bankrupt and their currency is not worth the paper it's printed on, and we can arrive at an alternative basis for measurement.
Or, by some magic, the US and the world economy recovers from this mess and the USD stabilizes at some level.
 

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I wonder if Canadian investors need separate exposure to gold. For one thing, USD weakness typically translates into CAD strength, so any gold price appreciation converted into CAD won't be as much. Also, we have a very healthy exposure to gold stocks (whether through index funds or direct stock holdings). So, I wonder if gold does make much sense for Canadian investors.
 

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I've been riding 20% allocation to the metal all year, and am up about 20% since then.

World governments continue to devalue their currencies, and one has to question where the balance point really is. I (and Peter Schiff) feel it's alot higher than this. I often refer to the Dow/Gold ratio as a disturbing reminder that history is bound to repeat itself.

My strategy is mechanical timing of asset allocation (a la Faber), and once GDX crosses below it's 200 day SMA sell point, I'm going to cash with all of it. I check the prices gold almost every hour during the work day though, given my paranoia about how quickly things can change, despite Peter Schiff being right "most of the time", I don't want to be stuck holding a bag of worthless gold if it's back down to $950/oz next month .

For now though, it's all in, and I'm planning to buy my first silver bullion ETF this week :D
 

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Does anyone know a good site that targets metals more so than stocks in general? I'm not going to invest, but I am curious to follow some just for fun.
 

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1) gold is a hedge against a falling us dollar and as long as the dollar which is the worlds reserve currency is looking shaky then that anxiety will translate into a demand for gold
2) gold bugs will say that it's a can't lose investment in the following way, more inflation = good for gold ...... deflation = fed intervention which will lead to eventual inflation = good for gold
3) adjusted for inflation (depending on who you believe) it is worth over $2000 an ounce
4) if all the currencies of the world were backed by gold it would have a value of over $50K per ounce
5) gold production has been steadily falling year over year
6) new mines are being dug at higher and higher altitudes and the cost of extraction is going up
7) india buys a lot of gold and as it becomes wealthier presumably will want more
8) china will also want to have gold both for jewelery and as an investment
9) there is a lot of skepticism about the real value of the usa gold reserves
10) central banks are no longer selling gold

blah blah blah

i still think it can drop 20% overnight but at the moment i think there is so much anxiety and change in the world financial markets that gold is just a "worry" investment

it certainly doesn't make you anything ....

(i wish i hadn't bought maple leafs because they are tough to sell)

i think the claymore gold bullion fund is a good place to go, holds bullion for an mer of .5%

I wonder if Canadian investors need separate exposure to gold. For one thing, USD weakness typically translates into CAD strength, so any gold price appreciation converted into CAD won't be as much. Also, we have a very healthy exposure to gold stocks (whether through index funds or direct stock holdings). So, I wonder if gold does make much sense for Canadian investors.
great point xiu has 12% in gold companies
 

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Can someone please comment on the Central Fund of Canada (CEF.A) as an investment, and how does compare to a fund such as GLD...Obviously they include silver in the mix too, which I see as a good thing (I'm thinking of the ishares Silver bullion ETF as another option).

The CEF website claims that there are no fees, but searching other forums people say there is an annual MER of 2-3% to remain invested. Can someone please clarify?
 

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looks like you pay a premium of about 7% over net asset value to invest whereas with bordergold, they charge about a 5% premium over spot to buy gold maple leafs

if it's long term put em in a safe deposit box and forget about them i would buy from bordergold.com but for bullion that you want to trade you are better off with claymore's bullion funds which only charges .5% mer and has it's gold in scotia and it is unemcumbered
 

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Even if it works ...

Charlie Munger has this to say on gold:

"I don't have the slightest interest in gold. I like understanding what works and what doesn't in human systems. To me that's not optional; that's a moral obligation. If you're capable of understanding the world, you have a moral obligation to become rational. And I don't see how you become rational hoarding gold. Even if it works, you're a jerk."
 

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A few days, I learned I could invest any part of my RRSP and RPP portfolio in precious metals. I made a move: 25% on these investments are now in precious metals.
 

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CC: Gold is up 3-4x in $CDN in the past decade or so. Appreciation not quite as high when compared to USD but definitely still makes sense for Cdn investors.

Addy:
http://www.infomine.com/commodities/ Longer-term charts
kitco.com Precious metals
kitcometals.com Base metals

fatcat:
A lot of your reasons to own gold can be said about other commodities. The difference is gold can go up 5000% from here and not affect the economy. Lack of industrial purpose is no con.

You're a bit late to the game if you're just getting in now but you'll still make plenty of dough. Note that the juniors massively outperform the seniors and gold itself later in the cycle. The ones I follow are just starting to move.

Imo, natural gas is the way to go now. The only unloved commodity left.
 

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When the gold was at $860 I knew the gold price was about to explode. Alex Jones' website (Infowars) with all his links were helpful. The problem is that I neither had the money.
 

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A lot of your reasons to own gold can be said about other commodities. The difference is gold can go up 5000% from here and not affect the economy. Lack of industrial purpose is no con.

You're a bit late to the game if you're just getting in now but you'll still make plenty of dough. Note that the juniors massively outperform the seniors and gold itself later in the cycle. The ones I follow are just starting to move.
i agree that it can absolutely go much, much higher, it can also correct downward dramatically in about a day so you need to watch your gold investments pretty carefully, i bought coins as a long term own and forget in case of some really bad monetary crisis but i regret that and will probably sell them as they are not as liquid and the spread to buy and sell is too large ...... for those of us that only buy etfs, what do you think of these bmo gold juniors etf zjg ?

Semafo Inc. 9.40%
Centerra Gold Inc 9.40%
Detour Gold Corporation 7.61%
Allied Nevada Gold Corp 7.16%
Alamos Gold Inc 6.47%
Coeur D'Alene Mines Corp 5.89%
European Goldfields Ltd 5.67%
Golden Star Resources Ltd 4.35%
Seabridge Gold Inc 4.08%
Aurizon Mines Ltd. 3.68%
NovaGold Resources Inc. 3.68%
Gammon Gold, Inc. 3.29%
Fronteer Gold Inc. 3.02%
Great Basin Gold Ltd. 2.98%
Northgate Minerals Corp. 2.87%
Lake Shore Gold Corp 2.68%
Ventana Gold Corp 2.63%
Guyana Goldfields Inc. 2.41%
Intl Minerals Corp 2.29%
Tanzanian Royalty Explrtn 2.24%
Kirkland Lake Gold Inc. 2.03%
Dundee Prec Metals Inc. 1.96%
China Gold Intl Res Corp 1.66%
US Gold Corp 1.56%
Queenston Mining Inc.
 

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In my case my RRP and RRSP plan investments in not only in gold, but others like silver. I keep track of the daily progress of my portfolio thanks to a website.
 
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