Investing in gold

LoopHole · #1 12-10-2012

I know i've made a thread before about investing but this one is more specific to a certain type of investment.

I'm sure all of you follow on whats going on in the world but since this forum has its rules we can't get into politics here, but lets face it the dollar is becoming worth less and less everyday. The economy isn't getting any better. So far it seems like its going to get a lot worse.

So getting to my point here, how does one invest in gold and how does it work? For me at least investing in gold in this time seems like a good idea. The thing is i know nothing about investing in gold or buying gold. I know you can invest many different ways but where and how can you buy gold?

Feel free to share anything that will educate me on this topic in any way shape or form.

Silas · #2 12-10-2012

Easiest way is to buy shares in $GLD through your broker. There is also $IAU, but the $GLD tends to track the spot price of gold better.

Each of these funds own physical gold bars and store them at an undisclosed location. The more money that pours into the fund, the more gold is bought. It's the easiest way to own gold.

Buying physical gold is an option, but you will have to pay a premium over the spot price to acquire it. Then you must store it. Storage can be quite expensive if you plan to invest heavily. The only reason you would go with this option is if you think WWIII is around the corner and the only currency that would be accepted is gold. I personally think it will be too late at that point.

Silas · #3 12-10-2012

It's all about $GLD. $SLV has too many commercial applications. The price is more volatile.

northpeak · #4 12-10-2012

I would only buy gold that is in my possession to access easily. If you buy shares of gold then consider that money as good as gone if the **** hits the fan.

slim jim · #5 12-10-2012

Quote:

Originally Posted by northpeak

I would only buy gold that is in my possession to access easily. If you buy shares of gold then consider that money as good as gone if the **** hits the fan.

exactly. most people who buy gold buy just shares of gold. seems kind of meaningless if you think about it

Silas · #6 12-12-2012

Quote:

Originally Posted by slim jim

exactly. most people who buy gold buy just shares of gold. seems kind of meaningless if you think about it

Meaningless if you intend to use gold as a currency, yes.

But gold is an important part of investing and owning shares in a gold trust are the cheapest way to do that. If you had physical gold, the more you acquired, the more you would need a storage facility. This cost would far exceed the appreciation of gold prices, and your "investment" would be a loss year in and year out.

Roscoe · #7 12-23-2012

Many people believe that just because the price of the underlying commodity is going UP that the stock should go up also.

I can post companies that go Up in a Bull market and companies that go Down in a Bull market.

Do not follow that belief of you will go bust.

Same goes for Oil, Gas, etc...

Futuremogul888 · #8 12-23-2012

Gold, silver, and even copper are good investments just in case the US dollar goes bust. But the very best investments just in case are guns and bullets. Especially assault riffles. Stock up on those people; It may be a bumpy ride.

rsot · #9 04-12-2013

Bitcoin is on the rise too - crazy investment opportunity.

slim jim · #10 04-12-2013

I'm not sure why people love gold. Should **** hit the fan, you can not eat it, drink it or live in it

Sandy D · #11 04-12-2013

All precious metals are worth some money. Of course gold is sitting their at the top of collector and investors minds.

With that being said I know of 2-3 people who attend auctions I do and they only buy heavy metal things no one else wants such as heavy metal work benches, non working appliances, anything they can scrap for a buck.

One of them told me they make a living scrapping metal.

He drives a brand new Navigator pulling a huge trailer to the auctions and usually has it filled to the brim by the end of the night.

We are not far from the ocean and see those metal detectors everywhere looking for coins, rings etc.

Univerzal · #12 04-13-2013

Lol, sounds like good hard work indeed, most metals are easily resold for a fair price and if you know what to look for youre good to go, but i wonder if the gold price ever will rise again

Sandy D · #13 04-14-2013

For some people scrapping is what they know. Showing most of us are very lucky to have other skills.

It is hard work, watching them struggle to lift huge heavy items makes me wonder if it is worth it.

Scrapping is big business right now in the USA. Lots of people making money scrapping any metals.

Older homes are full of copper and people used to tear them down without even thinking. Now they bid off the wiring and pipes in the house before tearing them down.

GreenBean · #14 04-14-2013

$3.25 lb at close on Friday for copper means people will be out there still.

Sandy D · #15 04-14-2013

Used to be going to a farm auction or large house auction and if it had a large lout building or garage it was full of metal scrap type items and no one would even bid.

Now spring forward a few years and now you see guys beating each other to death on the prices to get that entire building, garage etc. that is full of any metal type items.

A couple of weeks ago a small out building with just metal cast piping brought some crazy money at an local farm auction. Before it would not even get a bid as no one wanted to touch it.

BiN4RY · #16 04-14-2013

Quote:

Originally Posted by rsot

Bitcoin is on the rise too - crazy investment opportunity.

Have you been looking at its values lately? The bitcoin market crashed hard in the past week. Bitcoin is NOT a worthy or safe investment because it's literally money made from thin air with nothing backing it up. It's extremely volatile and nearly all of its rise are in forms of bubbles.

vogeltron · #17 05-01-2013

Just bought more Silver, too much paper gold and silver that doesn't exist watering down the market down. Perth mint in Australia and other bullion dealers have had physical demand going through the roof since Gold and Silver sold off two weeks ago. Longest back order for just about everything I have ever seen. I have been buying metals for over a decade.

vogeltron · #18 05-01-2013

Quote:

Originally Posted by slim jim

I'm not sure why people love gold. Should **** hit the fan, you can not eat it, drink it or live in it

Gold and Silver were real money for thousands of years. If **** hits the fans I would rather own something real than a piece of paper Bernakie can print and devalue at will.

vogeltron · #19 08-09-2013

Mining stocks are crazy cheap. Book values near 29 years. Buying them like CRAZY!!!!!!!!!!!!!!!!!!1

exxomscp · #20 12-29-2013

Quote:

Originally Posted by vogeltron

Mining stocks are crazy cheap. Book values near 29 years. Buying them like CRAZY!!!!!!!!!!!!!!!!!!1

I can second this. But I've retired from stock trading..

As for gold, I would only buy something I can physically hold.

easy.bake.oven · #21 12-29-2013

18k gold and IF colour grade D diamonds is all I buy

I wear it all every day so get to enjoy them rather then them sat in some undisclosed location where they will not get looked at and appreciated.

Bling bling

Also having them to hand is good because if I ever had a money crisis, I can sell them within minutes and get thousands there and then so its kinda handy, better than having stacks of cash in the house

sax4 · #22 12-29-2013

I've invested in Silver and Bitcoins. I buy Britannias which are free of capital gains tax. Got them stashed all over the place.

Also haves bitcoin stashed in a secure wallet that I ain't touching.