Is Gold a Good Investment?

Posted on 31. Oct, 2013 by in Business

According to expert Larry Edelson of Money and Markets, gold is bottoming. He mentions that he can’t predict when or at what price gold will be at when it bottoms, but it is on the way in the near future. That being said he goes on to describe three likely scenarios for gold going forward from today and what may happen. He hopes by giving you these scenarios you can be prepared to minimize potential risk and maximize profits in the process.

Edelson believes that when the price of gold hit $1178 back in June it was at a major bottom and it won’t go below that. Since then gold has been taking short term resistance at around $1338 so now it needs to resist levels of $1400 and then $1449. He feels this is the highest probable projection for what will happen to gold. He then goes on to state that a second scenario is that gold will rally around $1605 but it will consistently fail to close above $1449 on a weekly basis. The third and final scenario that expert Larry Edelson talks about is the same as scenario two but also collapses into a new all-time low coming up in the year 2014. It will look like it is fairing ok, but ultimately it will fail to issue major confirming buy signals.

Since everything is so up in the air with what gold will do, this expert suggests merely testing the waters if you are wanting to invest in gold. Don’t go all in, don’t overcommit, don’t become impatient and don’t become over emotional. Simply give gold investing a whirl and understand it is volatile. Take the time to map out your strategy and try to minimize as much risk as possible so that you can be successful. In order to minimize your potential risk, Edelson suggests simply investing 5% of your funds into gold. That way you are safe and not too tied down into this investment. In addition to gold, there is also silver and even mining shares.

Edelson says that based on his models and research he doesn’t feel that silver has bottomed out yet so he urges investors to steer clear of this particular metal as a mode of investing. The same is true for mining shares Edelson has found. Wait until both have bottomed out before investing he urges to maximize your profits and gains. Furthermore in giving advice on investing Edelson urges individuals to practice patience and emotional discipline. He feels those are the two most important characteristics for success in trading and investing and I’d be inclined to agree with him. Don’t let your emotions get the best of you and invest too much or too little into something. Take the time to do adequate research then make some smart moves. Once you have invested, you’ll need patience because things don’t happen overnight. Those who are patient will see the most benefits. Investing is a great thing if approached in the right way.

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