I was kinda worried. Day by day, the value of my investment goes down. How can I improve on this?

I was kinda worried. Day by day, the value of my investment goes down. How can I improve on this? Also, can I use my bitgold in paying bills? I am currently here in the Philippines. I'm not really knowledgeable about this but I invested anyway. It look like a good investment at first but it's value is going down. Can someone help me clear my mind? Thanks! :)
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Answers

  • GoldmattersGoldmatters Posts: 3,961 Admin
    edited May 2016
    @J_Marie Gold is not an investment. Gold is for savings. Over the long term you will preserve the money that you have . You might consider a reoccurring deposit (this just means your account automatically buys gold every 1 month, for example) and then just forget about it. In a few years you will have a nice savings account:)
  • 79Au19779Au197 Posts: 4,047 Gold ✭✭✭✭✭
    Hi @J_Marie

    In terms of fiat currency you will see the value of your vaulted gold fluctuate. Don't think of it as an investment - think of it as money. Take a look at some of the charts on http://pricedingold.com or read Josh Crumb's excellent essay https://www.goldmoney.com/research/goldmoney-insights/savingstech-back-to-the-future-edition

    The best way at this time to pay bills is by using your GoldMoney prepaid is either USD. EUR, or GBP denominations - or transfer money back to your bank as you need it.

    All of us expect the dollar price of gold to go up in the coming years. Some think many percent - others many times. It is all tied to the strength of the dollar and its acceptance as the world reserve currency.

    Another way to think of it is that gold is sound money- when it's price drops you can buy it at a bargain. The rest of the stock market is dropping now too, but more so than gold.

    I hope that helps.
  • GrandpaBrianGrandpaBrian Posts: 679 Silver ✭✭✭✭
    When you say you "invested" does that mean you bought gold for your account or that you bought shares of the company on the stock exchange?

    If you bought gold, that's not really an investment. It just means you traded one currency for another. Gold is sound money. The amount of gold you own is still the same when measured in grams. Yes, you can use your gold. The most convenient way is by getting the free GoldMoney Prepaid MasterCard. Think of your gold as savings and as insurance against the decline of fiat money's purchasing power.

    If you bought some GoldMoney Inc shares then yes, you made an investment. With all shares you are taking some degree of risk. This is a very new company. It has not yet produced profits on a multi-year basis. There is always the risk that management may fail to execute the business plan for any number of reasons.

    The flip side of those risks is that the company becomes a big success and the shares go up significantly in value.

    If you own gold, relax. It has proven itself over 5000 years globally. If you own shares, decide what amount of risk is right for you, do your due diligance, and be part of the adventure. Best of luck!
  • ShadowsRevealedShadowsRevealed Posts: 83 Copper ✭✭
    edited May 2016
    @J_Marie , if you have put money into BitGold then don't worry, it will be safe. If you purchased stock in the company, then of course it can fluctuate. While gold is going down is a great time to buy. I think right now its $39.28, which is a relatively low price. Basically, always try to trade as little fiat for as much gold as possible. So if you have friends and family who are interested, today might be a good day for them to look into it. (Dont forget to use your Golden Heart, and if they can, buy 5 grams to start so they get a sign on bonus too! )

    --Keep your gold for the long haul. :smiley:
  • GoldIsCurrencyGoldIsCurrency Posts: 1,784 Gold ✭✭✭✭✭
    @J_Marie You should probably look at your gold as a "longer term" savings. Keep enough pesos for your day to day requirements in the Phils and my suggestion would be to add to your gold savings on a regular basis. A lot of billionaires will keep around 10% of the overall wealth in gold. There is a reason for that as gold is not really an investment but more so the best performing "currency". It hedges you against devaluating currencies. As GrandpaBrian pointed out gold has 5000 years of history. Over time gold always goes up in value. I have included a snaphot as to how gold has outperformed the filipino pesos. As you can see gold is up over 300% over the last 15 years based on todays price of gold.


  • 79Au19779Au197 Posts: 4,047 Gold ✭✭✭✭✭
    @J_Marie as @BigD shows gold is up 7% in the last year against the Philippine Peso. What bank gives you that kind of return today?
  • GoldmattersGoldmatters Posts: 3,961 Admin
    @79Au197 @BigD @ShadowsRevealed @GrandpaBrian The collective wisdom in this community is tremendously impressive. :)
  • WebMogulWebMogul Posts: 36 Tin ✭
    @J_Marie simple when gold is down. Buy Gold.
  • GoldIsCurrencyGoldIsCurrency Posts: 1,784 Gold ✭✭✭✭✭
    @WebMogul You got that correct! On days where it is down is the perfect opportunity to buy more. We all know over time gold always goes up. 5000 years of history is the proof in the pudding. I added another lump of gold to my account today.
  • GoldmattersGoldmatters Posts: 3,961 Admin
    Agree with @WebMogul and @BigD . Just keep buying small amounts and never stop and you will probably be okay <----- not advice
  • Auric_GoldfingerAuric_Goldfinger Posts: 23 Tin ✭
    edited June 2016
    @J_Marie I have been thinking about this too. What will work for me is to buy gold on the dips and transfer funds to the pre-paid card when gold is higher. This will lock in a gain in one's local currency. That's the beauty of this. If one held only physical gold, one would have to sell to realize any gain. But here, by transferring funds from the vault to the pre-paid card, one is not selling or spending (yet), just locking in any gain.
  • 79Au19779Au197 Posts: 4,047 Gold ✭✭✭✭✭
    edited June 2016
    @Auric_Goldfinger @J_Marie

    No no no no noooooooo

    Every time you load the card it is a sale. Buy on the dips … OK. Load to your card as necessary … OK.

    Sorry :'(
  • Auric_GoldfingerAuric_Goldfinger Posts: 23 Tin ✭
    @79Au197 You call it a sale but I see it as a transfer. When one adds to their vault it's a purchase. When one loads a pre-paid from their vault it's a transfer. When one uses the pre-paid in the real world is when I can call it a sale.
  • 79Au19779Au197 Posts: 4,047 Gold ✭✭✭✭✭
    @Auric_Goldfinger

    Call it what you will, gold is sold* to obtain the currency for your GoldMoney Prepaid card. The Prepaid Card is issued and maintained by Wirecard Card Solutions Ltd. (see the back of your card). When you load the Prepaid Card (note that it is a Prepaid Card, NOT a debit card) BitGold sells gold in the vault of your choice and transfers the proceeds of that sale to Wirecard Card Solutions Ltd.

    * I want to be very specific here because it is a sale and depending on the country in which you live it may be considered a taxable event on which you may be required to pay capital gains. BitGold is under no regulation to report this sale to anyone. They are a bailment service not a bank. But you, again depending upon your country of residence, may have a legal obligation to report it.
  • Auric_GoldfingerAuric_Goldfinger Posts: 23 Tin ✭
    edited June 2016
    @79Au197 That was an over simplification in my mind.
  • zulu1520zulu1520 Posts: 294 Bronze ✭✭✭
  • zulu1520zulu1520 Posts: 294 Bronze ✭✭✭
    @Auric_Goldfinger Also when you "lock in the gains" you are also "locking back into the manipulation" if the currency falls in real terms you would lost the value you would have retain if you kept your money in gold.
  • 79Au19779Au197 Posts: 4,047 Gold ✭✭✭✭✭

    @79Au197 That was an over simplification in my mind.

    @Auric_Goldfinger
    Sorry I don't understand :/
  • Auric_GoldfingerAuric_Goldfinger Posts: 23 Tin ✭
    @zulu1520
    Obviously, but if you don't load the pre-paid with some fiat funds what's the point of having it?

  • Auric_GoldfingerAuric_Goldfinger Posts: 23 Tin ✭
    79Au197
    What don't you understand?
  • Rj838Rj838 Posts: 212 Bronze ✭✭✭
    @79Au197 , looking that you have a great deal of input and experience with this platform, I had a query,was going to follow it up but couldn't due to hectic working hours with laptop/mobile out of reach.
    Query; gold prices fluctuate both remote and short term also, I have noticed that it slightly fluctuates during the day, hence which time of the day is gold down and fit for purchase!? is there a fixed time period during the day in which gold goes down ???
  • 79Au19779Au197 Posts: 4,047 Gold ✭✭✭✭✭
    @Rj838 wow - I am honored, thank you. I am also going to invite @ArtMatters @GoldIsCurrency @GrandpaBrian into this discussion. At the end of this post I am also embedding a video just posted by @AMALGAM11 that explains what I am about to tell you somewhat.

    Below is a three day chart from http://goldprice.org (hmmm gold it moving back up nicely in yellow)

    Notice that just after 8 AM New York time is when the New York COMEX opens. This is when you are most likely to see a dip in the price of gold as COMEX floods the market with paper gold contracts in an effort to suppress the price of gold. The flood of "available gold" on the market usually drives the gold price down. Nobody ever expects to have physical gold delivered because there is NO GOLD backing up these contracts. The short video below explains all of this better than I can.




  • GoldmattersGoldmatters Posts: 3,961 Admin
    edited July 2016
    @Rj838 @79Au197 is right that there are GENERALLY and SPECIFICALLY times that gold is likely to take a hit. This is well documented by Craig Henke (above) and also Andy Hoffman. There also specific events and market data days (jobs reports, FOMC) where gold seems to consistently take a hit.

    I will enter a disclaimer that all of that means very little over a length of time. To try and time those events is both difficult and dangerous because that pattern is only valid until it's not. I completely understand the temptation to attempt to time it, but I believe it becomes counter productive psychologically at a certain point because you have to be consistently right so often.

    Is your objective to trade or accumulate gold? If it's to trade, I think there are much better vehicles to accomplish returns. If you are accumulating, there is nothing wrong with trying to buy on dips but to play in such an obviously manipulated\suppressed market is extremely dangerous unless you have massive amounts of capital.

    Having said all that there is no one better at the short term gold movements than Craig Henke, and his monthly subscription is like $12 a month.

    Good luck :)
  • GoldIsCurrencyGoldIsCurrency Posts: 1,784 Gold ✭✭✭✭✭
    edited July 2016
    @Rj838 @79Au197 @ArtMatters I agree with what you are saying. The morning gold price slam has gone on for quite some time. It is usually a 9 in the morning thing, sometimes a little bit earlier, sometimes a little bit later but also not every day. FOMC, job reports and world economic events like Brexit can move the price significantly.

    Also agree with ArtMatters statement "I will enter a disclaimer that all of that means very little over a length of time". I have mentioned on numerous occasions that I have the recurring deposit function set to buy a small amount of gold every single day. This way you obtain a great averaging price over time that I would strongly argue beats anyone that is trying to time all of their purchases. If gold takes a significant swing down then that might be an opportunity to make a larger lump sum deposit and I have done that myself to add to my daily accumulation. In my opinion it is better to "accumulate regularly" than to try and time.
  • GoldmattersGoldmatters Posts: 3,961 Admin
    @GoldIsCurrency is a genius for pioneering the "buy a small amount of gold every single day." We should all be listening to this.
  • GoldIsCurrencyGoldIsCurrency Posts: 1,784 Gold ✭✭✭✭✭
    @ArtMatters Thank you for the kind words "pioneer" I like that. Originally I had the recurring deposit set for every 5 days and had it set like that for a few months. I noticed that between my 5 day intervals I was missing out on some decent dips in the price of gold. For some uncanny reason it was almost as if my 5 day interval was hitting on days of peaks in the price of gold. I then adjusted it to buying gold every 2 days which I had set like that for about 1 month where then I finally took it one step further and just adjusted the deposit to every single day.

    I would love to see the math to show the difference of how much gold a user would have if they bought every single day, versus once a week and once a month. I would be shocked if the daily deposit didn't procure more grams of gold over time.
  • GoldmattersGoldmatters Posts: 3,961 Admin
    @GoldIsCurrency This can be used as a Case Study for Goldmoney in the future. You are procuring valuable info for The Company!
  • 79Au19779Au197 Posts: 4,047 Gold ✭✭✭✭✭
    @ArtMatters @GoldIsCurrency @Rj838 @SpontaneousOrder

    My only "problem" with auto buying a little each day is that I have no way of knowing when the buy will occur. Control freak that I am I always want to get the best price.

    My second issues deals with IRS reporting of many small buys and sells in $s and opposed to grams and matching the correct buy quantity to the correct sell quantity. But I guess that is what accountants are for. I truly hope that Canadian tax law in regard to gold is less onerous than in the US.
  • GoldmattersGoldmatters Posts: 3,961 Admin
    @79Au197 valid points. Guess we will all find out together how the tax implications effect us Goldmoney users....
  • GoldIsCurrencyGoldIsCurrency Posts: 1,784 Gold ✭✭✭✭✭
    @79Au197 The recurring deposit usually happens around 11:00 at night is what I have noticed. It would be really cool if we had the ability to set the exact time of when that deposit happens. I know I would be selecting 9:00 in the morning. Regardless of what time the deposit happens at, you would probably be surprised with the difference in gold grams that is procured on a day to day basis. It still shocks me to see such a difference day to day, hence my love for the daily deposit.
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