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Investing in gold via ETF's

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Occasional Contributor
Morning Could anyone with a little more info regarding gold or trading in that commodity enlighten me. Is it a reasonably good idea to invest(on a small scale) say R500pm in Gold via ETF's...after say 10 years, what are the odds of making a decent return that is greater than investing in an Old mutual/Sanlam 5/10 year investment or stashing money away in some money market/fixed deposit.
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14 REPLIES 14
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Contributor
Gold ETF's are really just a speculative bet on the metal and who knows where it will be in five years time. Could be around where it is now. If you want a monthly savings plan why not use the Satrix Rafi or Dividend ETF's instead. At least you get growth with the market ...
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Occasional Contributor
Thanks for the feedback I already have a Satrix 40 investment...I was just curious if the gold option is a reasonably sane investment - speculative,yes but has history shown that over the cycles, has gold provided the investor with a good return on investment?? I thought about the Gold coins and stuff and saw their enticing growth numbers bandied about on some of the gold coin companies (200% - 300% growth over 5-7 years) but I dont feel comfortable with this option
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Occasional Contributor
Thanks for the feedback I already have a Satrix 40 investment...I was just curious if the gold option is a reasonably sane investment - speculative,yes but has history shown that over the cycles, has gold provided the investor with a good return on investment?? I thought about the Gold coins and stuff and saw their enticing growth numbers bandied about on some of the gold coin companies (200% - 300% growth over 5-7 years) but I dont feel comfortable with this option
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Contributor
The other problem with New Gold is the R/$ rate. I made money on the initial surge a few years ago but then just stagnated. Gold price up/Rand weakens = zero profit.
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Occasional Contributor
Oh, I see...thank you Roy!!
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Super Contributor
IMO any serious expectations of investment out-performance from the gold ETF requires a macro view of the future for global monetary eventualities. That road is still a minefield of conjecture, despite increasing clarity of probabilities, driven by confused sentiment and massive interventions it is short term volatile with technical faking. Long term sentiments for continuation of the trend involve some very negative thinking. I would prescribe anti-depressants. Otherwise it is an essential component and should not be brushed aside.
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Occasional Contributor
Phew!...Fred, you've just confused the khaki shorts off me...are you saying, in a nutshell, PROCEED WITH CAUTION?
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Occasional Contributor
I don't beleive coins are an option. you will waite years to offset cost to buy and sell
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Super Contributor
Proceed -yes, change caution to healthy doses of greed and fear. This be same as most everything but with less ice.
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Regular Contributor
I say invest in Platinum instead
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Occasional Contributor
Thanks for the input folks. ......................................................................... Can silver be thrown into this picture??...Platinum has been subdued of late...I never thought i'll see the day where Gold costs more than Platinum, wow...i guess, one must throw caution to the wind and sit quietly until the next recession...and then sell!
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Not applicable
My personal view, never invest in something that doesn't generate annuity income. Trade it by all means, but don't count it an investment. Long term, investments have value because they generate value. The more money a company makes, the greater it will be valued. Gold doesn't create value. But laws of supply and demand mean you can trade it, which is a totally different story
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Super Contributor
This trend thing looks too enticing to ignore. Be fearful, be very fearful. Remember that a faint heart never won fair lady, and fair she be. When she covers that blazing red hair.
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Regular Contributor
Not at the moment, gold price up, rand weak = 65% profit over ~ 2 years
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