Sunday, October 16, 2011
Is It Time to Buy More Gold?
Lucianne.com carries a Bloomberg piece (h/t Kitco) saying that professional investors are boosting their gold positions. Maybe it's time to add to my position. It's difficult after a period of loss to bravely attempt to time markets, but why not buy during a sale? Of course, the same argument could be made with respect to the housing market. A friend told me that a house that had been listed for $400,000 in the Town of Olive, where I live, was recently sold at auction for $130,000. Will there be further declines, or is this the bottom? When I bought my house in 1997 Olive was called "low-tax-Olive." Because of incompetent Town negotiations with the City of New York, which pays much of the Town's taxes via its largest reservoir, the Ashokan, our taxes have signficantly escalated. So buying property on speculation is risky, which will contribute to plunging real estate prices.