What is the best way to invest in Gold?

Question

I am interested in investing in gold and considering buying gold coins since the stock market can be a real rollercoaster ride. Do you have any safe tips for buying and selling gold? Thanks

Answer 1

Two ways to invest in gold:

1) buy gold coins/bars as you mentioned, trouble is a) the mark-up on coins can be high (or premium of up to 15%-ish), depending on the types of gold coins -- South African Kruggerand or US Eagles, b) buying and selling them is a little impractical (imagine taking them in and out of bank safety deposit boxes everytime you want to buy/sell) and expensive (dealers charge commission buying and selling). c) You have to consider insuring them too if you decided to hide them under your mattress at home.

2) Buy gold ETFs, essentially investments backed by gold for a management fee like mutual funds. It eliminates the physical impracticality mentioned above but it sure loses the allure of being able to hold your investments physically in your hands.

Why don't do a bit of both, put the bulk in ETF investments and collect gold coins/bars from different sovereigns on the side?

Don't ever buy gold jewellery as investments (you lose money the moment you buy them). Also, read up about where gold price is likely to head in 2007.

Answer 2

You can buy the metal and store it, but you have to buy those already assayed and stamped with the purity and serial number, otherwise you may have a hard time certifying its authenticity upon selling.

While there is no doubt the metal is the "safest" way to store gold, selling it may be tough and there are usually huge fees/commissions involved.

Further, during the storage, you earn zero interest, so be sure you are confident the trend is up ( Those who thought that 15 years ago lost out on 14 years of interest ).

I prefer to invest in gold by buying stocks of gold producing companies like Newmont Mining. You have liquidity and can sell at any time without the hassles of a gold broker.

Just my $0.02 worth

Answer 3

You distrust the dollar at 19? Oh, boy. that is not reliable. the surprising answer for every person who's amazingly youthful (under 25 is extremely youthful) is to take a place each unfastened penny previous an emergency fund indoors the inventory marketplace...say 50% VTI, 25% VWO, and 25% VXUS...until finally you're forty 5 or so. i'm pleased with 10% ot 25% in money or bonds if it keeps something of you money contained available contained obtainable, yet silver and concern of fiat money? No. you will possibly desire to be upbeat, helpful and searching for the deal of a existence-time. The "subject" it is "your subject" that instruments your concepts on fireplace and earns you a astonishing residing indoors the attitude. The argument approximately fiat money has some economic and philosophical benefit, yet from the POV of a youthful investor that is finished bs. right this is why: did you be conscious of that each element this large us of a has finished indoors the twentieth century -- starting to be the international's wealthiest, optimal effective us of a of all time -- have been given right here on the comparable time actually the fee of our distant places places money lost ninety 5% of its fee? It did. The 2010 US dollar is extremely properly worth approximately 5 cents in assessment to the 1914 US dollar. in terms of long term era fee, currencies are relative. It concerns what the economic device is doing (becoming to be) not actually the fee of the distant places places money that is measured in. indoors the large, massive image, silver may be ok as a speculative investment (not extra effective than 10% of your internet wealth) for the subsequent 3 hundred and sixty 5 days or 2, yet I doubt it. what's extremely specific is that if gold and silver grow to be the main suitable investment of your lifetime, you will probably have died very youthful and fairly undesirable. making a wager on the top of the international isn't a sturdy theory for every person, no remember if that is an distinctly undesirable theory for the better youthful. i'm extra effective than 2 circumstances your age and overall performance extra effective than 50% of my money indoors the inventory marketplace. If the marketplace crashes lower back. i will purchase better.

Answer 4

first of all, every other answerer so far has given you really bad advice...

if you want to invest in gold, do NOT only consider buying physical amounts, this is much more costly than the alternative of buying gold futures...

you can trade futures with many different brokers on-line just like you trade stocks, ETFs, etc... you can trade futures on margin so that you can get into a lot more positions...

you should be aware that futures are more risky than holding physical gold because of the nature of the market and the margin requirements, but it might be what you're looking for

Answer 5

Buying metal and storing may be too risky. You will need something like what they have at Fort Knox to keep it safe from all the Beagle Boys of this universe or you should be like McDuck the billionaire Duck. Since this is next to impossible, you can try your hand with Gold Options at COMEX or Commercial Exchange in California. If you know how to trade in Options it will be worth trying this route since you don't have to take the pain to store all the Gold you buy.

Answer 6

The best and safest way to invest in gold is to buy real gold wafers (usually 1 oz.) and keep them accessible to you, a safety deposit box works well. If you buy gold bonds, stocks or certificates your investment can end up as worthless as the paper it is printed on.

Answer 7

gold even more of a roller coaster so forget this false focus on safety. Guaranteed to lose purchasing power in the bank so not safe. IAU is the gold answer if willing to stop hiding. Forget coins - high commisiions

Answer 8

When the price of gold is very low, buy gold coins and bullion.
When the price is gold is very high, sell gold coins and bullion.

Answer 9

a safe way is to buy stock in a gold company, my favorite gold stock is (AUY) Yamana Gold Inc. it is trading around $13 a share I see it around $19-$22 next year.

Answer 10

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Good Luck and Best Wishes!