How to play the gold market post Brexit
zulu1520
Posts: 294 Bronze ✭✭✭
in About Gold
@ArtMatters and anyone else who likes to time their buys. How do we operate in this post Brexit reality. I use to think anything under $40 a gram was a good buy pre Brexit. What is your buy limit post Brexit.
P?S. I'm fully aware of what dollar cost averaging is. I'm asking those who time their buys for their outlook going forward.
P?S. I'm fully aware of what dollar cost averaging is. I'm asking those who time their buys for their outlook going forward.
Best Answers
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79Au197
Posts: 4,047 Gold ✭✭✭✭✭
@zulu1520
I always thought that those who say you can't time the market - don't know how to time the market,
With the Internet, Twitter, free charts, YouTube analysis - all of the information is there. Patterns are obvious. Black swans less so. If you have smart phone and the perseverance to pay attention all the time it can be done. The issue is not when to buy, rather when to sell. That and being able buy some now some later sell some now some later. Keep some fiat on the side lines. No margin ever. Don't buy using credit cards. Buy/sell in large enough chunks the fees don't eat up you profits. Don't day trade. Days and weeks.
Gold below 40/g would be a good deal - if we every see it again. Gold isn't volatile enough to "make money". Gold is money. Gold and silver stocks are more volatile.
BREXIT is the beginning of the slow motion train wreck of the collapse of the EU. Don't trade you gold. Convert to fiat only when you need it. But it in the dips which will occur. Gold used to be lowest when COMEX tries to push it down at open.
Religiously follow http://goldprice.org
Goldmoney Personal provides the lowest in/out fees.
http://stores.ebay.com/GoldmoneyPhysical is an excellent source of physical. -
Goldmatters
Posts: 3,752 Admin
@79Au197 @zulu1520 Great question. So many directions we can take this. I suppose my answer is somewhat nuanced.....
I can't say that I time my Bitgold\Goldmoney buys. It's like saying when do you time your savings? My answer is: literally whenever I have extra capital available that is not designated for some other investment instrument. Capital is already designated for saving or investment, and I will never stop doing either. So the answer is also "Always, and never."
I don't care about fees. I don't care what the price is. I just buy when I have extra dry powder, for this "bucket" at least.
An investment portfolio is COMPLETELY the opposite, but I believe your question was specifically regarding this platform, so I will keep it there.
I am also segregating this from any Brexit reality scenario. I certaintly think this is a material, reality changing black swan event. Worse still is that the market completely failed to anticipate it, so nothing is priced in, or off the table. It's the sort of thing where you just already have to be hedged, which I believe you should be, at all times.
Fortunately anyone reading this is at least SOMEWHAT hedged, and I'm operating under the assumption has at least a couple grams of gold.
Apologies for the long answer. Your question is an important one. I'm also sorry I couldn't give a more black and white answer.
If you want to talk equities, we can go from there
Answers
"Margin call Monday or Tuesday" !