I have been sitting on the sidelines for most of the year with vast majority of my investment cash parked at a Money Market account. But with the latest Fed cut, I think it is time for me to seek higher returns.

As the local Money Matters guy, I figured I would chronicle my actions for informational purposes. Perhaps we can all learn what to do or what not to do.

So why am I buying gold? At the root of it, it is simple, because it is going up. If you look at the charts for GLD (ETF for gold), the strong upward movement is readily apparent.

Second, with the Fed cut, the inflationary pressures are building and dollar is taking like no tomorrow. Gold is a good safe haven in situations like this (thus, why it is going up).

I don't think I am going to buy it today (it is going down a bit after yesterday's strong move) but I will probably look for the next upward move to buy. I will put in a 4% trailing stop loss order instead of my usual 7% since gold is not quite a volatile as stocks.

I will post again when I actually buy.

Get out of the Market while you can!!!!! We're in a Recession! You will loose everything! The next gen depression is upon us!!!!

-Choi

*DISCLAIMER* I wouldn't considermyself a "conservative investor" by any means, and I am young enough to make up for mistakes. Also I am very actively changing my investments when I think tides will turn (read: not long term strategy) *DISCLAIMER*

I have had about 40% of my 401k parked in gold for a few months now . people remember the last gold ramp from last year, and it will make it at least that far this time round.

just my $.02

That's not Choi. Choi knows how to spell "lose."

A little update: I bought GLD at $72 in mid-Sept. It is now at over $75.

I thought this was the thread about Bling.

Why not just park your money into a good DIV yield stock? I'm probably buying BAC soon. I think the run up on metals might be over. Didn't copper raise (%) more than gold over these last few years?

Read the thread about buying individual stocks. I am not smart enough to buy individual stocks.

I would rather hang my hat on ETF's and class funds.

I am not buying GLD to make money. I am buying to protect my money.

And Pants, I bought a lot of bling!!!

That is a very dangerous kind of thinking.

If it is going up, it is going up. When it is going down, it is going down. What you think and what the reality is usually do not overlap each other very often.

Exactly. Gold is more to protect against inflation. Normally, it's not that great to make money off of. Of course, in recent years, as with everything else, you could have made a killing.

Is that really a picture of Choi!

I wish...

That is some SHWEEEET bling!!!

Another update:

Gold finished a very strong week with closing at 77.67.

Over 7% return in about a month.

But I cannot say that I am happy about it. These kinds of strong run up on commodity prices spell bad new for US economy in general.

Jiminy Cricket!!!

Gold is now over $810/ounce, which means it is over $81 for me.

Of course, this means dollar is getting pounded.

Wow, just wow...

Gold, my 401k thanks you