Should I sell my gold ?
When to sell your gold
How low could gold fall?
Gold will probably never fall below the cost of mining it which is currently about $500/ounce. If gold fell below this price the gold mining companies would go bankrupt so there would be no more supply.|
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Stocks, Houses or Gold?
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How much gold should I own?
According to the Talmud you should keep one-third of your assets each in land, 'business interests', and gold. This idea has a modern equivalent in the Permanent Portfolio theory which prescribes a mix of 25% each of Treasury bills, long bonds, stocks and gold.
Most pension funds invest only in equities and bonds, with small allocations to property and cash. However, in recent years concerns have grown over the risks inherent in these asset classes, leading to increased interest in gold.
Silver
If you are investing a small amount of money it is worth considering silver as an alternative to gold. In the event paper dollars become valueless, smaller value coins will be easier to spend. Imagine trying to buy $100 worth of groceries with a gold coin worth over $1,000...
Historically the gold/silver ratio has been about 16:1. It is now over 30:1 which leads many analysts to conclude that silver is undervalued. However the 16:1 ratio was based on Western valuations and many Asians, especially the Chinese, are much more interested in gold than silver so there is reason to think that the price ratio may be redundant.
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