I recently purchased Newgold at R9091 on the basis that I belived that that the exachnge rate would weaken follwing the end of the worldcup and that the world economic recovery was still pretty volatile and unceratin which would create a favorable hedge in gold. So far Newgold has lost just over 8%. Do you think my timing and reasoning was correct and where do you belive the price of gold is set to go.
Harmony Gold's view (taken from their SENS today): a gold price of USD950/oz an exchange rate of USD/ZAR 8.19 for South Africa the above parameters resulted in a gold price of R250,000/kg AngloGold has a forecast of just over $1000/oz BUT then there are several other pundits for $2000+ (ref nicholsongold.com) The 200 day ROM indicates a good time to buy GLD now.
I bought GLD at 5212 in 2007 with your purchase now I think you could maybe have waited for awhile. It's not easy because you need an entry point somewhere. As for the future of GOLD it's anyone's guess where it could go. With the poor economic data coming out of the USA it favours GOLD the more uncertainty and turmoil the better for GOLD. I would not run a stop loss because it is better to hold it for a longer period and ride out the rough patches. Stop losses will stop you out in fact I don't run any stop losses. Sure I have made moola and lost moola but made more moola than lost moola. Stop losses would have @&*#$% #% my whole system.
well your timing and/or reasoning was correct wheren't correct - depending on what you planning .. goldbul, but you investing not traading, so a fundamental stop loss, not price based .. sasa - I think both their gold price and exchange rate are wrong
Gold's time to shine came over the past two years ,during a near meltdown of world financial markets - a time when it should have shot through $2000 and beyond.The fact that it did not is an indictment of it's role as a safe haven.Gold is strictly a jewellery commodity, not a hedge against against the Dollar.