Gold price cratered 5% to 1699$/ounce. As Gold peaked at ~1900, people were gravitating towards it for perceived safety. Today’s drop shows that perceived safety may be dangerous to one’s financial health. While Gold may have a role as part of one’s asset allocation, buying more of it simply because it moved up may not be wise (applies for any other asset).
Re: Gold down 5% today (Feb 29)
^very true...but ppl some how never understand this...and then when it tanks everyone starts crying!!!
Re: Gold down 5% today (Feb 29)
Gold price cratered 5% to 1699$/ounce. As Gold peaked at ~1900, people were gravitating towards it for perceived safety. Today's drop shows that perceived safety may be dangerous to one's financial health. While Gold may have a role as part of one's asset allocation, buying more of it simply because it moved up may not be wise (applies for any other asset).
But you see it has made slight comeback, it went down to $1650 (or even lower) then surged to $1780. In long run gold will be okay asset.
Re: Gold down 5% today (Feb 29)
Captain - gold recovered today -up 1.5% I think.
There was another thread in which Gold was recommended as a buy when it was around 1760 abiut 4-5 months ago. Then it dropped to 1650, surged back to 1780, then back to 1699 and now at 1725. Also in other threads re: gold jewellery, folks opined gold will always do well.
Anyway, I was not referring to short term movements. I find it interesting that about 7 years ago, with Gold at ~ 250, no one wanted it. And with Gold at 1780. people loved it. Nothing really has changed except gold being 7 times higher!
Re: Gold down 5% today (Feb 29)
Captain - gold recovered today -up 1.5% I think.
There was another thread in which Gold was recommended as a buy when it was around 1760 abiut 4-5 months ago. Then it dropped to 1650, surged back to 1780, then back to 1699 and now at 1725. Also in other threads re: gold jewellery, folks opined gold will always do well.
Anyway, I was not referring to short term movements. I find it interesting that about 7 years ago, with Gold at ~ 250, no one wanted it. And with Gold at 1780. people loved it. Nothing really has changed except gold being 7 times higher!
I don't know who didn't want it but people around me have always wanted gold :D , not just for jewelry but secondary being gold maintaining its value or appreciating over period of time as well as its ability to be sold anywhere in the world (unlike stocks/real estate).
Re: Gold down 5% today (Feb 29)
so should i take it i should buy my wedding jewellery now? 
Re: Gold down 5% today (Feb 29)
Crown, I have no opinion on when to buy jewelry since I have zero experience in that area. I hope your wedding is a grand success :)
Re: Gold down 5% today (Feb 29)
Captain - "Gold at ~ 250, no one wanted it"
What I meant here was, when Gold was $250 an ounce, not a single pundit recommended it. Now it is suddenly a favorite asset class.
Just as when stock market was at 667 in March 09, no pundit recommended stocks, and in 2000, with mkt at 1500. everyone "wanted" it or recommended it.
Re: Gold down 5% today (Feb 29)
Gold down 2% today. Put your seat belt on.
Re: Gold down 5% today (Feb 29)
gold is nonsans. i'd rather buy yogurt or something useful.
one of these days indians will stop buying gold for weddings, and the price of gold world-wide will tank like anydink...
Re: Gold down 5% today (Feb 29)
So the day after Gold futures tanked 2%, the March 7 WSJ issue had the following explanation:
Gold fell 2% "as investors sought the safety of cash o**n renewed concerns over Greece **and data showing weaker inflation".
I did a double take reading the bold part, since all along we were told that European sovereign debt crisis is one of the main reasons for Gold to go up.
Re: Gold down 5% today (Feb 29)
Gold was down 2% today. Could the speculative component of Gold be in the process of being removed?
Re: Gold down 5% today (Feb 29)
^ Gold was down only 1% yesterday at close - not 2%. However, it is down close to 3% today. I have no idea where it will go from here, but what is going on is an indication that speculation played some role in Gold's huge price movement to the upside.
In the meantime, the stockmarket is up ~ 105% from March 2009 - and has returned ~ 112-114% including dividends in that period.
This also indicates simple dollar cost averaging would have done people a lot of good, rather than panic when things appear bleak, and get over-exhubarant when things look rosy.
Re: Gold down 5% today (Feb 29)
^ Gold was down only 1% yesterday at close - not 2%. However, it is down close to 3% today. I have no idea where it will go from here, but what is going on is an indication that speculation played some role in Gold's huge price movement to the upside.
In the meantime, the stockmarket is up ~ 105% from March 2009 - and has returned ~ 112-114% including dividends in that period.
This also indicates simple dollar cost averaging would have done people a lot of good, rather than panic when things appear bleak, and get over-exhubarant when things look rosy.
Problem with stock market is that 'entry' for 100% return is not so frequent, normally when market is down average people stay away, they only jump in when the market has ALREADY yielded good returns to investors then they listen to 'good returns' stories and start "investing".... then market starts to slide (the usual story).
Re: Gold down 5% today (Feb 29)
^ Right Captain. That is all I have been trying to communicate - when things look the worst, one needs to step in. What is it they say - it is darkest before dawn.
Re: Gold down 5% today (Feb 29)
Gold was down 2% today
Re: Gold down 5% today (Feb 29)
Gold down another 2% at market open today! It finished down 3.3%