I'm looking to invest in Gold

[fairweatherfan]

Land. I don't know why more people don't buy land.

Can you ever have enough land? No sir. Men have been fighting over mainly two things since the beginning of time. Land, and women.

Population grows, land becomes more scarce...how can it possibly depreciate in value. Go buy some farmland.

I guess if ocean levels rise and you have some beachfront or if your area runs out of water you could lose some value.

Gotta choose your land obviously.

Gotta be 500-700 ft above sea level. Gotta have good natural aquafirs. Also, survivalist training would come in handy in these situations, so bomb shelters are a must.

I'm not saying apocalyptic climate changes or zombie invasions are coming. I'm just saying I'm ready.

Been working on my cardio.

Don't forget natural choke points with elevated surveillance/firing positions, and destructible/retractable ladders and staircases to preserve the security of your elevated ground.

Also, everyone knows when the time comes, the only currency worth anything will be bottlecaps.

[Edgar]

Land. I don't know why more people don't buy land.

Can you ever have enough land? No sir. Men have been fighting over mainly two things since the beginning of time. Land, and women.

Population grows, land becomes more scarce...how can it possibly depreciate in value. Go buy some farmland.

I guess if ocean levels rise and you have some beachfront or if your area runs out of water you could lose some value.

Gotta choose your land obviously.

Gotta be 500-700 ft above sea level. Gotta have good natural aquafirs. Also, survivalist training would come in handy in these situations, so bomb shelters are a must.

I'm not saying apocalyptic climate changes or zombie invasions are coming. I'm just saying I'm ready.

Been working on my cardio.

Don't forget natural choke points with elevated surveillance/firing positions, and destructible/retractable ladders and staircases to preserve the security of your elevated ground.

Also, everyone knows when the time comes, the only currency worth anything will be bottlecaps.

I knew it
I knew it
finally will paid off


honeeeeeeeeeeeeey
time to sweep the garde...!!!!

[guava_wrench]

Personally, I think this gold rush is just another fad.  Its a bubble just like everything else.  The prices have sky-rocketed as people speculate. 

Is there really a bonafide inflation threat right now?  People often equate our current economic situation to the mid-70s.  Guess what, gold wasn't the best investment then and I don't think it is now.  I really think its more speculative than anything and I'd urge you to do more research into this and really think about it then get caught up in the hype.

Why put you money is something overhyped? That means artificially increased demand and artificially high prices.

The smart move is buy something, pay TV broadcasters to plug it, and then dump all you own.

[bdm860]

While I always appreciate response, I wasn't asking about Gold as an investment... I guess this is more for people who have experience investing in Gold.

It sounded like you were talking about Gold as an investment.  A hedge against inflation is an investment.  If inflation goes up, based on history you will have a rise in gold prices.  But, there are a couple of other economic factors that could make it a really bad investment in the short term.

If you have a long term horizon, you shouldn't have a problem beating inflation.  That being said, don't just limit yourself to gold.  Look at the whole spectrum of commodities as a hedge.

To keep it simple though, an Gold ETF should handle your goals if economic conditions fall into order like you suggest.

I was confused at what he wrote here at first too.  But I think what he means is:  "I'm not asking if I should or shouldn't invest in gold, but I'm asking what's the best way to invest in gold."  So save your comments about "oh you should invest in this instead" and give comments like "if you're going to invest in gold, make sure you buy bullion through golddiggers.com..."  Just my interpretation though  

[Johhny Least]

GTU (Central Gold Trust) is about as close as you can come to owning physical gold via the stock market.  And take a look at CEF too (Central Fund of Canada).  Their assets are split 50/50 between physical gold and silver.  Consider owning some physical yourself, as well.  Good luck!

[JSD]

While I always appreciate response, I wasn't asking about Gold as an investment... I guess this is more for people who have experience investing in Gold.

It sounded like you were talking about Gold as an investment.  A hedge against inflation is an investment.  If inflation goes up, based on history you will have a rise in gold prices.  But, there are a couple of other economic factors that could make it a really bad investment in the short term.

If you have a long term horizon, you shouldn't have a problem beating inflation.  That being said, don't just limit yourself to gold.  Look at the whole spectrum of commodities as a hedge.

To keep it simple though, an Gold ETF should handle your goals if economic conditions fall into order like you suggest.

I was confused at what he wrote here at first too.  But I think what he means is:  "I'm not asking if I should or shouldn't invest in gold, but I'm asking what's the best way to invest in gold."  So save your comments about "oh you should invest in this instead" and give comments like "if you're going to invest in gold, make sure you buy bullion through golddiggers.com..."  Just my interpretation though  

Exactly, otherwise the thread would be titled "Do you think I should invest in Gold?".

[JSD]

GTU (Central Gold Trust) is about as close as you can come to owning physical gold via the stock market.  And take a look at CEF too (Central Fund of Canada).  Their assets are split 50/50 between physical gold and silver.  Consider owning some physical yourself, as well.  Good luck!

I heard about CEF, looked into it and am leaning towards it for my IRA investment. For my savings I'm leaning toward American Eagle Gold coin to store in a safe place.

[JSD]

Also if inflation is your only fear, then look at TIPS.  Purchase them directly from the government.  Yes, purchasing this from the treasury seems ironic on the surface but is exactly what you need if inflation is your only concern:

http://www.treasurydirect.gov/indiv/products/prod_tips_glance.htm

Interesting, thanks for the link.

[Donoghus]

Personally, I think this gold rush is just another fad.  Its a bubble just like everything else.  The prices have sky-rocketed as people speculate. 

Is there really a bonafide inflation threat right now?  People often equate our current economic situation to the mid-70s.  Guess what, gold wasn't the best investment then and I don't think it is now.  I really think its more speculative than anything and I'd urge you to do more research into this and really think about it then get caught up in the hype.

Why put you money is something overhyped? That means artificially increased demand and artificially high prices.

The smart move is buy something, pay TV broadcasters to plug it, and then dump all you own.

Umm...so are you disagreeing or agreeing here?

[thirstyboots18]

The smart thing would be to get a "real" financial advisor, or do your own homework and not base your decisions on casual internet contact.

[Brickowski]

I believe the price of gold has run up quite a bit over the last year.  I would investigate whether or not you would be buying at or near the top of the market.

[BballTim]

  A few weeks ago one of the posters was talking about his surefire risk-free method of getting a 30+% return from his investments. You could just dig up that thread and ask that guy.

[jack duluoz]

I worked in investments for awhile, and ultimately I recommend speaking with a financial advisor (depending on where you have your IRA, you can even get free guidance from a Certified Financial Planner (CFP)).

I do have a few tips to start you off with, if you actually purchase gold there are high storage fees with your broker and if you take possession of it there are high shipping charges, and when you want to sell it you have to physically mail it back to your broker, so it's not a timely process.

I recommend if you plan to buy a "gold stock" that you do a lot of research first, as with any equity. An alternative way to go is to purchase a mutual fund that invests in precious metals.

So the decision in yours, but talk to an advisor, preferably one that doesn't work on commission so you know your best interests are being served and they aren't pushing something specific on you. Good luck.

[drkalloch]

I'd look at small miners that combine gold and other metals with actual economic value, such as copper. Take a look at TGB, Taseko Mines, which is a small copper/gold miner from British Columbia. They just received government approval for their Prosperity gold mine, which should be online by 2012. If you really don't have time to do research though, but you like the idea of precious metals, there are plenty of precious metal mutual funds out there.

[TitleMaster]

Honestly, I would only look at Gold (not Silver, BTW), as a portfolio hedging instrument. The reason for it is basically a crisis of currency valuations: Euro vs USD, Yen vs USD, etc. In contrast, Silver is just another commodity, like Copper, Nickel, Corn, etc. Yes, all commodities go up against a collapsing currency (see Argentina, some ten years ago, or Zimbabwe for a more spectacular debacle) but the USD is nowhere near those scenarios despite all the current economic & political hacks in charge.

With that in mind, buying physical gold requires a relationship with a depository service. On the other hand, the EFT is a virtual way of doing something similar but of course, you're trusting the ratings, auditing, etc, of the securities vendor there.

What the typical investor does is place let's say 10% to 15% of his portfolio in gold. I did that sometime back and I made 200% yield on it (thus giving the overall portfolio, a nice booster) but now, I don't feel the need to add to it, until the end of the next major dollar rally which will then retest gold's low point again. Usually, if gold doesn't develop another bearish signal, at the end of a dollar re-strengthening, it might not be bad to add a small bit, just to make sure that the overall portfolio is still within 10-15% of the total. All and all, I suspect that Gold is in a temporary bull run. I don't expect it to double at this point, $1K => $2K, since debt deflation is currently under way but since it does serve as a monetary alternative, it might not be a bad idea to have a bit, just in case.