Gold prices and commodities

[likeBull]

Hi all,

       I was wondering if anyone could share their thoughts about Gold and Commodities.

I wish to invest into these but am unsure if it's the right time to do so. Not long ago, I came across that commodities is good to invest now. Thoughts anyone?

       Pardon my ignorance, When they say the gold prices are up or down...how does that work?

[Vulcanl]

You came late to the party - it is a dicey time to buy commodities right now

[Gold]

What about gold, does it still have legs? Some analysis expect it to retouch the highs

[moneybags]

No offense, but you sound quite clueless about investments, so my advice would be not to be too adventurous and just park your money in a savings account for a year or so, until the market turns.  You could, for instance, put your money in a savings account denominated in Australian or New Zealand dollars, or in Euros and at least preserve most of your capital.  If you want to put your money in more fancy investments, you should then also make the time available to do your homework.  That's what I do, but I probably spend 10-15 hours a week doing so (it's a hobby for me).

As for gold and commodities, I think there's some upside but at this point also some significant downside.  Economists are increasingly worried about deflation in a year or so, after the current bout of inflation, in which case the rationale for gold and commodities (inflation hedge) ceases to exist, and a lot of people may rush for the exits at the same time.  There's also talk of regulating the futures trade for commodities in the US, which may again lead to a stampede out.  That said, if you can accept the risk of a temporary correction, I think in the long run you'll do OK with commodities, even at this point in time.  You could for example buy RJI, an ETF linked to the Rogers RICI commodities index, and traded on Amex.  Since commodities are actually consumed (as opposed to gold), I think they're a more solid investment.