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Is it good to buy gold on margin?

December 28, 2010 by  
Filed under Silver Investment FAQ

I would like to buy gold using margin(2%)…and i wonder about your professional opinion :).Do you think silver and gold are good investments right now?
Thanks alot!


6 Responses to “Is it good to buy gold on margin?”
  1. Russell says:

    Yes, if it goes up.

  2. Richard E says:

    Gold is very volatile: its price fluctuates a LOT. I would not buy gold on margin.

    Silver is similar to gold.

  3. Franco says:

    Better put your money on horses. They are more predictable and it will last longer.

  4. Pure_Alpha says:

    Never use margin. It’s too dangerous.

  5. 4XTrader says:

    Only if your are speculating on the price fluctuations of gold and silver. If you are looking at them as long term investments, then no. If you’re doing it on margin, you need to be monitoring the markets constantly.

    If you buy gold/silver futures, you’re buying on margin, but those type of investments the profit is based on the price fluctuations of the assets. I would not recommend futures unless you are very well versed in them and you have the risk tolerance levels and funds to back your trading.

    I would recommend you just buy the physical metals or the ETF’s. Look for gold to break it’s all time nominal highs of $850/oz. soon and to break $1000/oz. Look for gold to top out around the $2500/oz. area.

  6. Mathew C says:

    It depends where you live. In US you should worry about Uncle Sam not allowing there currency to degenerate with high gold price. High gold price means high inflation means lowering of purchasing power for Americans which is not what is expected by the high and mighty at the Capitol Hill. So be careful about gold investments. In the short run it might go high and you can try your hand at Gold Options probably at COMEX, CA.

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