when i have extra money i usally spend it on worthless goods. If everytime i had money i buy a 1 ounce gold bar would it be a good investment? What is the chance that the price of gold will go down and i will loose my money? And if i amount a good amount of gold (about 1kg) how easy would it be to sell it at a profit?
2006-12-26 12:27:00 · 4 answers · asked by Damian J 1 in Business & Finance ➔ Investing
Iam not worried about the storage as i would just store it in my house no problem. and i do not like stocks as i would like to have some physical gold. And how easy would it be to sell once i have a kilo.
2006-12-27 01:12:07 · update #1
If you are going to buy gold, buy gold coins. You can store them easier than bars. I am not sure you can buy bars unless you do it on the futures market and there you have a set minimum and if you take possession you will have to pay for storage. Gold coins are much easier to sell when you have possession.
Also, gold can be volatile. Look back in the 80's when it hit an all time high. It tanked and didn't come back for years. Gold tends to perform best when there is either inflation or a bad economy. If you want to trade you can buy gold stocks like NEM (the ticker), Barrick Gold, FCX (it has copper and other stuff too), etc. I think NEM is the only company that doesn't hedge its gold exposure so it is more in tune to the movement of gold.
Your risk of loss is the same as it is with any investment. I personally wouldn't buy gold, I would buy a gold stock ONLY when I thought inflation was coming and I would trade it. NOT buy and hold. Gold coins can be collector items so again you can take possession and hold it for years (if like the early 80's happens again it will take you years to make your money back).
I see your latest notes that you want to hold gold. You should probably try looking up sites on the internet to see what you can actually buy. I know you can buy coins, but it sounds like you want to buy in a heavy weight. I just saw this site, but I do not know if it is any good.
http://www.usagold.com/cpm/goldhelp.html
2006-12-26 12:42:39 · answer #1 · answered by d1jensen 2 · 0⤊ 1⤋
You can buy gold through an ETF that tracks gold. The ticker symbol: GLD. You can type it in on Yahoo Finance and see it your self. The ETF tracks the price of gold by 1/10th. If gold is at 680 an once each share is 68 bucks.
2006-12-26 12:36:09 · answer #2 · answered by Anonymous · 0⤊ 0⤋
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2006-12-26 17:43:30 · answer #3 · answered by dinu_pawar 5 · 0⤊ 0⤋
i'd look into a gold etf instead. check out ticker IAU. here's a chart. much more liquid than bars of gold, but then again, not as cool to line your basement with.
http://finance.yahoo.com/charts#chart4:symbol=iau;range=2y;compare=^tyx;indicator=dividend+volume;charttype=line;crosshair=cross;logscale=on;source=undefined
2006-12-26 12:40:20 · answer #4 · answered by myersei 3 · 0⤊ 1⤋