is Gold still a good bet in short term investment?

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1

If I have around $15k-20k sitting in my bank doing nothing, are precious metals (specially Gold) still a good investment for around 5 years?

What would you do if you have 20k available? will you split in 2-3 cats (gold, stocks and GIC etc) or putting on Gold Certificate is also a good bet?

2

Re: is Gold still a good bet in short term investment?

Need to know your country of residence and investment opportunities there first in order to determine the best ROI/ROA

3

Re: is Gold still a good bet in short term investment?

^ Canada / US or lets say 75% of time Canada...

4

if your time horizon is 5 years, you will probably be better off in equities. never been a fan of gold. to me, it is completely sentiment driven. how do you determine the intrinsic value of gold? I’m not a fan of commodities in general. plus gold is already at 1000. it might go to 1500 or it might go to 500. it is a pure gamble, imo.

if you have the temperament for it, put it in a good mutual fund. the two companies I would recommend are:

Beutel, Goodman & Company Ltd.
Leith Wheeler Investment Counsel

I recommend these two companies because both are good value-oriented fund managers. but more importantly their management fees are pretty decent. they won’t produce eyepopping returns like sprott, Front Street, Resolute, etc… but they also won’t blow up like these high risk funds do. other good ones would be Mackenzie Saxon. Mackenzie Cundill is another good one.

note: I do not work for any of these companies though I would love to if I get the chance. the above is purely my personal opinion.

if you don’t think active managers add value, then just buy some index-tracking ETFs. but I would personally stay away from gold.

ps. don’t come after me if you lose money… or if gold goes to a trillion dollars.

5

I would suggest you to strictly stick to gold and purchase in physical shape.

Dont purchase in ounces. You will lose money.

Purchase it in 1kg bar or 1/2 kg bar if you can.

1 kg bar consists 32 ounces of gold.

Gold is being traded at $1,141/ounce today. Couple of days ago it was being traded at $1,090/ounce. at $1,050/ounce (ideal price) you should get a 1 kg bar for around $34,000.

Commercial crises are just around the corner. US is printing more money then the gold reserves she has can back. The whole US Corporate bubble is about to burst. People will run to purchase saftey in gold. All that within 5 years...

Its your call. If you do decide to purchase gold then make sure

Dont get it from banks as they create a file and record. Purchase it from some desi store.

What allows me to pass opinion? Well, two year ago, I purchased (on credit line) three 1kg bars at $ 770/ounce. In other words, one of my bar is fully paid off today. :)

.....and I am still holding onto them because I belive the price will double very soon!

6

I buy dollars , Euros or Riyal !

But best option has always been investment in gold. Not in jewellery but gold in the form of bars. Euros once gave me loss. But I have never suffered any loss in investment in gold Alhamdolillah. Buy it and keep it ....sell it whenever you need , 99% it will be sold in profit .

7

Gold closed at $1,179 per ounce dated April 30th 2010 and is projected to continue increasing.

Greece is having trouble to garner $80 billion. After two months, Spain is coming to the market to raise $ 230 billion. All I see is trouble and more trouble!