what type of gold should should i buy coins or ?
2006-11-21 09:19:20 · 11 answers · asked by Dark Horse 1 in Business & Finance ➔ Investing
Buy the index. Coins are silly.
2006-11-21 11:12:39 · answer #1 · answered by angrysandwichguy1 3 · 0⤊ 0⤋
If you feel that gold is a good investment, then you only need to consider the fees. Buying and selling coins usually costs 1% minting charge. But most folks don't like having thousands of dollars lying around in their home, so they use some form of safe storage (like a bank security box), which means extra $$$.
If you already have a stock market account (Schwab or E-Trade, for example), you could probably find a gold index ETF (a fund that trades like a stock) and buy that for a small commission ($7 from my Scottrade account). That's my favorite.
The only downside to owning the fund as opposed to the gold, is that owning the fund has no "bling value". There's nothing like showing off your gold bricks to your friends.
2006-11-21 19:20:14 · answer #2 · answered by Polymath 5 · 0⤊ 0⤋
Flush, Big R and Stephen J need to do their research. Gold is expensive? Based on nominal terms gold is trading about 25% below it's all time high, but based on real terms, gold is nearly 70% below it's inflation adjusted high. Wait till it gets to $450? Forget it, $450 is long gone. Gold is making it's final base before it's next leg up and this next leg (which should being in the next couple of weeks) will push gold above it's all time high of $850/oz. and when it's all said and done, gold will trade above $2,000/oz.
And I love the "it's a horrible investment because of the past 100 years, blah, blah, blah". First of all, if you lived to be 300 years old, sure, invest in equities. But since most people only have about 30 years of investing time in their lifespan, you go where the money is being made.
Did Flush stop to think that from the inception of the Bretton Woods Agreement in 1945 till 1971, gold was fixed at $35 per ounce? Gold didn't move in value in nearly 30 years by government decree. When Nixon closed the gold window in 1971, gold went from $35/oz. to $850/oz. in 9 years, yet from 1966 to 1982, the stock market was in one of the worst bear markets in history and was losing value. So, during that time frame, which was a better investment, gold or equities? These guys are saying gold is horrible and equities are good. Yet, by the early 1980's, most people were bashing equities and staying they were a horrible investment.
Like I said, if you live to be 300 years old, over the long run, stocks have done better, but since most only have 30 years of investing time, they must go where the money is made. For example, if you bought into the market in 1929, it would have taken you 25 YEARS to BREAKEVEN. I'm not talking about making money, I'm talking about just getting back to the point which you started, and if the average person has 30 years, that means you'd only have 5 years to make enough money to retire upon.
Take a look at it this way. From 2000 to present, the stock market has returned 5.15% over a period of 6 YEARS. And that's just the Dow. The S&P 500 is 7.35% BELOW it's all time high, the S&P 100 is 21% below it's all time highs, and the NASDAQ Composite and 100 are 46% and 58% respectively below their all time highs. Yet, during that same time period, gold is up 125%. So which one was a better investment during that time period, equities or gold?
Yes, during the 80's and 90's gold was a horrible investment and equities were booming, BUT, in the 70's gold was the place to be and equities were not.
The amateurs are the ones that get married to an asset class and will stay there though the heavens fall. It's the pros that will move to where the money is being made. I would venture to say that Flush and Big R are amateurs. One day, gold will be overvalued and it will be time to sell, but that time is far from here.
2006-11-23 15:16:40 · answer #3 · answered by 4XTrader 5 · 1⤊ 0⤋
IAU - the etf that trades like a stock - holds physical gold. Best play as do not have to worry about mining expenses, mines selling future production forward, etc. No question. Huge mark-ups on coins, etc. Definitely not "too late to the party".
2006-11-22 09:54:05 · answer #4 · answered by vegas_iwish 5 · 0⤊ 0⤋
Why are you buying it? Buy what you like: If you like collecting coins, buy coins. Buy jewelry if that's your thing. If you just what gold for gold buy a plate or a bar.
2006-11-21 17:28:17 · answer #5 · answered by veggiepark 3 · 0⤊ 0⤋
I think gold's expensive, I'd say wait until it drops around $450 or lower, but if the economy keeps weakening, then gold will go up in value.
2006-11-21 19:20:35 · answer #6 · answered by STEPHEN J 4 · 0⤊ 0⤋
don't.
Gold is horrible as an investment. Over the last 100 years, any other type of investment - stocks, bonds, real-estate - has done better than gold.
2006-11-22 23:41:35 · answer #7 · answered by Flush 2 · 0⤊ 0⤋
Don't do it. You don't invest in metals, you speculate on them. It's a guessing game. Investing is too important to guess on. Unless you want it because you like it. Then by all means it's cool to look at. But as an investment, metals are horrible. You're probably too late to the party.
2006-11-22 06:57:06 · answer #8 · answered by Big R 6 · 0⤊ 0⤋
I am a fan of white gold myself. Platinum is too expensive.
2006-11-21 17:26:32 · answer #9 · answered by Vicki B 5 · 0⤊ 0⤋
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2006-11-21 21:09:44 · answer #10 · answered by Anonymous · 0⤊ 0⤋