Is now a good time to invest in Gold?

Is now the time to invest gold, and why or why not? what are the Pros and Cons. Is it better the physical thing (jewel etc..) or in stock?

I believe gold is the best investment you can currently make. Global instability, inflation, low interest rates, falling dollar. Gold is a tangible item, that will always be in demand... I see $1000 an ounce by the end of the year. with much more room to run.

Go to :

low-cost-stock-recommendations

.com

Click on the "Precious Metals" Button

Gold is a terrible long-term investment.

I would not take a position.

Gold prices are a tad high right now. If u had gone in a few months back, you would have made big gains today. However, gold is expected to rise in the future. But you must be able to weather the falling gold prices which would happen when the US economy is back on track.. esp if you buy now. Generally, when the USD is weaker, people would prefer to hold precious metals as it is still seen as being more stable in nature. If you feel that the economy will worsen, oil prices will increase further and a recession is imminent, then go ahead to purchase it.

But my feel is that we're already in a position swayed towards a possible recession (though not yet)... and gold prices maybe a bit high now. So it really depends if you believe a recession is going to happen and if you have the cash to invest in gold right now.

I wouldn't place no more than 5% of your portfolio in gold. If you do purchase in mutual funds or individual stocks. I do own the etf GLD.

just in time .

it's always a good time to "invest" in gold, as long as one has been doing it consistently over a long period of time. (i say "invest", because it's really more of a hedge...)

even with gold now at about $925, i think it is most likely to go higher, as long as the Fed continues to lower interest rates and make other policies that have the effect of "printing money", i.e., inflation.

another factor which may play is the eventual revaluation of the RMB Yuan, which would make gold relatively "cheaper" for the increasing middle class in China.

i would allocate no more than about 5-10% of your income / net worth to gold, on a regular basis, regardless of price. if your gold goes up, it goes up; if it goes down, you can buy that much more for the next upswing. but you shouldn't need to depend entirely on it going up unless all your other paper investments turn to dust. if and when that would happen, your gold would kick in as your "golden anchor" or "wealth insurance". it is said that in ancient times an ounce of gold could buy 300 loaves of bread, and could buy the same number today, and i think that's how you should approach gold.

you will hear arguments about the time that gold hit the last peak at $850 in 1980 and then tanked for years, which would have caused you to lose your money. that would have been technically true, but how many people would have done exactly that in reality? those people who realized and understood the economics of the 1970's would have ridden along the gold price and cashed out before the bubble burst.

if you have no issues keeping and storing physical gold, then i would do so by all means. and i think that Krugerrands are the best out there, because they are manufactured for hardness and are the most recognized bullion coin in the world. many people alternatively buy gold ETFs, whose issuer holds the gold for you, but there is still the possible risk of corporate incompetence and malfeasance, resulting in accounting that claims gold that is really not there, and/or bankruptcy that would leave you with no greater privilege than being a general creditor.

(btw, as long as we're talking about gold, you may want to look into silver, which i think has greater upside potential right now...)