short term? no, not a chance, the market is still falling, that includes gold, and it's doubtful that it will pick up any time soon.
Long term? who knows! investing in mining corps could be very risky, for example AUY has dropped from $19 to $3-4 in less than 3 weeks, with little sign of picking up again. This may mean that they will have to scale back operations and thus the share price will stay down.
As for buying gold? no, not at this price, it's still too high, look at the past 8 years first, you see a massive increase in gold price, along with oil, after the 2002 market crash, up to an inflated price of $1000 per ounce. Prior to this gold had maintained an average value of between $350-450 per ounce for two decades.
At the moment gold is around the $800 mark, there has been no flock to buy gold in light of the recent crash since the price was inflated in the first place.
My advice would be to wait and see what happens. Some of the smaller mining corps. are reaching the point where their share price has dropped to takeover level, and we are bound to see a few swallowed up over the next year, especially when you see the hammering that copper is taking. The price of gold itself is going to continue to fall untill it's corrected. I'd imagine it would level out at around $500 per ounce...THEN you buy.
Stay away from oil too...it's correction is not over.
short term? no, not a chance, the market is still falling, that includes gold, and it's doubtful that it will pick up any time soon.
Long term? who knows! investing in mining corps could be very risky, for example AUY has dropped from $19 to $3-4 in less than 3 weeks, with little sign of picking up again. This may mean that they will have to scale back operations and thus the share price will stay down.
As for buying gold? no, not at this price, it's still too high, look at the past 8 years first, you see a massive increase in gold price, along with oil, after the 2002 market crash, up to an inflated price of $1000 per ounce. Prior to this gold had maintained an average value of between $350-450 per ounce for two decades.
At the moment gold is around the $800 mark, there has been no flock to buy gold in light of the recent crash since the price was inflated in the first place.
My advice would be to wait and see what happens. Some of the smaller mining corps. are reaching the point where their share price has dropped to takeover level, and we are bound to see a few swallowed up over the next year, especially when you see the hammering that copper is taking. The price of gold itself is going to continue to fall untill it's corrected. I'd imagine it would level out at around $500 per ounce...THEN you buy.
Stay away from oil too...it's correction is not over.