Is gold a good investment in a ressesion?

I always recommend buying actual gold and silver; not stocks, or bonds. The actual metals. In a bull market, there are three stages. Stage 1: speculators start investing in the commodity. At this stage, the general public has no clue that it is happening; just like no one knew that the housing boom was coming at the end of 1997. Stage 2: this is when big banks and governments are investing in the commodity. China, India, the EU, and the biggest banks in the world are investing big in gold and silver. Let's face it the US dollar has dropped in exchange value by 35% since 2002. This means that $100 now buys what only $65 could in 2002. You may have already seen the commercials asking to buy gold from TV viewers, assuring to pay top cash for it. If you did not get in during Stage 1, you must get in this Stage 2. I invested in 40 gold coins (US Gold Eagles, minted by the US goverment at $500 apiece only 2 years ago) Today, each coin is over $882. And since there is no paper trace because you actually hold the gold and silver, there is no taxes taken from the capital gain.

If you are waiting for Stage 3, that will be too late. This is the 2005 of the real estate boom, when every single person under the moon was talking about making money by buying property and this is the same stage in which people lose money and fall into foreclosure.

In any event, you can check the trends of gold and silver at kitco.com. I forgot to mention silver, I bought 400 ounces at $8 each 2 years ago and today silver is at $15.84.

You can't lose, gold and silver have been money for over 5,000 years, no paper currency has ever survived inflation.

Some people say gold is not as liquid. It is second only to cash. You should have at least 30% in your portfolio. Think of it as gold being the center piece of a rim.... each spoke represents a currency. They all meet in the center. During these times now, go for gold, international bonds and funds, and last some possible domestic investing.

gold goes up when the us dollar goes down and vice versa. If you think 2008 will continue to be a recession it could go higher. If you think the economy will get better then it will drop. I do think it is a little high to buy right now.

No, it is only good if you are expecting a recession.

Once recession hits the price of gold has already run up...

Remember, buy low, sell high :)

Recessions do not last forever. Plus, recession in one part of the world does not mean there isn't a booming economy somewhere else.

If you are looking for a safe place to put your money in the short term I would not recommend gold.

Yes. If the currency weakens, gold will comparatively increase in value.

Gold is really a hedge for a time like this. A portfolio shouldn't make it more than 10% of your total assets. But remember, gold isn't a very liquid asset, so try looking at it as a long term investment.

In times of uncertainty precious gems and metals are the safest bet to hedge against loss. There will always be demand for them in any market.

yes, the other day gold was $870 an ounce

You have to remember the "Golden Rule."
Those with the "gold." Make the "rules." <}:-})

I have never known a time when Gold is not a good option. Especially Long Term.

Gold is a great way to diversify your portfolio against economic fears, but the key is having it before recession hits. Another option is silver, it is far undervalued and has more room for growth than gold in my opinion. These are steady earners, and have actually been extremely lucrative over the past ten years. Investing in the precious metal mining companies is another way to take advantage of gold and silver prices. But yes, you can protect your money in a state of inflation if you keep it in gold. Swiss bonds are also very stable investments, although they have lower interest rates due to there almost non-existent inflation.

Yes it has a solid value, unlike US Currency.

Get your self some nuggets they are cool.

Gold is always good, I think.

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