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How to invest in gold?

 
Anonymous Coward
User ID: 49031408
United States
11/02/2013 11:50 PM
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How to invest in gold?
How to invest in gold?what would be a good minimum to start?
BRIEF

User ID: 39607259
United States
11/02/2013 11:53 PM

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Re: How to invest in gold?
How to invest in gold?what would be a good minimum to start?
 Quoting: Anonymous Coward 49031408


Buy rare gold coins, when the HNIC decides to confiscate gold, IRA, 401K, and other assets you might have, rare coin and art will be the last thing they take.
I never forgive and I never forget

I am a licensed firearm holder. I will, under protection of law, use lethal force if attacked.

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Saddletramp

User ID: 740208
Puerto Rico
11/02/2013 11:58 PM
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Re: How to invest in gold?
There's three established ways for the average person to invest in gold as a commodity, two of which are iffy if the shit hits the fan.

First there is the GLD ETF (Electronically Traded Fund) that is traded as an equity (stocks).

Second, there are Gold Futures Contracts that are traded on the COMEX which is a subsidiary of The Chicago Mercantile Exchange.

In the case of these first two trading options you never have any physical gold in your possession.

Third is buying physical gold from a gold and silver dealer, in this case you buy the gold for spot plus a premium and you take possession of the actual physical gold.

In the case of the third option it is much safer if the shit hits the fan because you have the actual commodity, the down side is that you have to store that commodity some place safe...

On the first option you could start out with as few as fifty shares of GLD which is currently trading at $126.95 per share, so you would need at least $6347.50 in a stock brokerage account like eTrade.

On the second option you will need margin money of at least $8,800 in a commodity brokerage account, for which you have to be an accredited investor, to purchase one gold futures contract and you could be wiped out in one day if the market moves against you.

On the third option, you can buy a 1/4 ounce gold coin, hell even smaller...so the investment is entirely up to you. You can start out with just a few hundred dollars.

Last Edited by Saddletramp on 11/03/2013 12:12 AM
"And how can a man die better than facing fearful odds, for the ashes of his fathers, and the temples of his Gods..." ~ Horatius

"Because he told the truth, and once you've heard the truth, everything else is just cheap whiskey..."

"We don't rent pigs!"
Anonymous Coward
User ID: 48871849
United States
11/03/2013 12:14 AM
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Re: How to invest in gold?
I'd buy silver instead, unless u have a lot of money. I'd avoid 100oz bars. They can be drilled and filled.
Anonymous Coward
User ID: 49346191
Japan
11/03/2013 12:14 AM
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Re: How to invest in gold?
Depends how old you are, what your needs are, what your convictions about the future are, and so on.

If you will forgive the bragadoccio, I made a tidy penny investing in solid physical gold bars of platinum, gold, and silver from about 2002-2011. That was my period of "making money." Now I am more interested in "preserving what I already have" than in making bold new investments. Since 2011 the situation in metals seems much more volitile to me. It is clear that the "true" value of physical metals is being held down by "fiat gold"...non-physical trading online, etc. There are literally billions of people with vested interest in the fiat system, so it is unlikely that it will be changed except in the event of a total global meltdown, where civil society falls to pieces. If that happens, even the purest gold might help you less than you think. You might go to barter it and your barter partner simply steals it and shoots you, or refuses to give you the true value, or you are so hungry you trade a 1,000-dollar ingot for a case of canned soup. The possibities are endless.

Basically I don't think in terms of "zombie apocalypse" scenario. I admit total anarchic meltdown is a possibility but if so, all bets are off. Instead, I think more in terms of a "long slow downward grind." I assume the developed "first world" rich nations will slowly be "pauperized" into third-world conditions. The slow frog boil rather than the sudden SHTF break.

So under that assumption I have reduced my physical metals holdings considerably but I keep some. I have large stakes in arable land, a security provision company, and several weapons and ammunition makers. I have holdings of oil and rare earth metals as well, although I am less bullish on both of these areas. I also do a bit of FOREX even though I know it's more like gambling than investment. These have been my choices. They may or may not pay off in the end. Your mileage may vary (shrug).
Anonymous Coward
User ID: 48871849
United States
11/03/2013 12:16 AM
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Re: How to invest in gold?
Was listening to Jim Sinclair the other day. His target price, $3200 before hyperinflation. $50,000 once hyperinflation kicks in.
Anonymous Coward
User ID: 49346191
Japan
11/03/2013 12:22 AM
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Re: How to invest in gold?
Was listening to Jim Sinclair the other day. His target price, $3200 before hyperinflation. $50,000 once hyperinflation kicks in.
 Quoting: Anonymous Coward 48871849


World governments will hold down the price of gold at all costs. Failing that, they will simply make possession of physical gold illegal, like Roosevelt did in the 30s. They will force you to sell at some ridiculously low rate. Or maybe just confiscate it outright.

Good might reach "$50,000" of some other outrageous number but if it does, you will be looking at $100 loaves of bread and $400-a-gallong gas, so it won't really mean all that much.
Anonymous Coward
User ID: 1405186
United States
11/03/2013 12:23 AM
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Re: How to invest in gold?
Ha good luck finding some.

Should have listened last year.
Sikhed

User ID: 47626355
United States
11/03/2013 12:27 AM
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Re: How to invest in gold?
Buy a couple of ounces of silver with every paycheck.
Once you get to around 60 or so, trade them in for an ounce of gold. (but I'd just stick with silver. More divisible)
:doom360:
Anonymous Coward
User ID: 49361477
Malaysia
11/03/2013 12:29 AM
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Re: How to invest in gold?
Buy a couple of ounces of silver with every paycheck.
Once you get to around 60 or so, trade them in for an ounce of gold. (but I'd just stick with silver. More divisible)
 Quoting: Sikhed


Yup, how do you expect to get change on your bar of gold?
Saddletramp

User ID: 740208
Puerto Rico
11/03/2013 12:32 AM
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Re: How to invest in gold?
Buy a couple of ounces of silver with every paycheck.
Once you get to around 60 or so, trade them in for an ounce of gold. (but I'd just stick with silver. More divisible)
 Quoting: Sikhed


Yup, how do you expect to get change on your bar of gold?
 Quoting: Anonymous Coward 49361477


Doesn't have to be a bar...can be 1/8 ounce coins...
"And how can a man die better than facing fearful odds, for the ashes of his fathers, and the temples of his Gods..." ~ Horatius

"Because he told the truth, and once you've heard the truth, everything else is just cheap whiskey..."

"We don't rent pigs!"
Anonymous Coward
User ID: 29674601
United States
11/03/2013 01:15 AM
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Re: How to invest in gold?
Buy a couple of ounces of silver with every paycheck.
Once you get to around 60 or so, trade them in for an ounce of gold. (but I'd just stick with silver. More divisible)
 Quoting: Sikhed


Yup, how do you expect to get change on your bar of gold?
 Quoting: Anonymous Coward 49361477


Silver would be an obvious answer.
Anonymous Coward
User ID: 29674601
United States
11/03/2013 01:44 AM
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Re: How to invest in gold?
There's three established ways for the average person to invest in gold as a commodity, two of which are iffy if the shit hits the fan.

First there is the GLD ETF (Electronically Traded Fund) that is traded as an equity (stocks).

Second, there are Gold Futures Contracts that are traded on the COMEX which is a subsidiary of The Chicago Mercantile Exchange.

In the case of these first two trading options you never have any physical gold in your possession.

Third is buying physical gold from a gold and silver dealer, in this case you buy the gold for spot plus a premium and you take possession of the actual physical gold.

In the case of the third option it is much safer if the shit hits the fan because you have the actual commodity, the down side is that you have to store that commodity some place safe...

On the first option you could start out with as few as fifty shares of GLD which is currently trading at $126.95 per share, so you would need at least $6347.50 in a stock brokerage account like eTrade.

On the second option you will need margin money of at least $8,800 in a commodity brokerage account, for which you have to be an accredited investor, to purchase one gold futures contract and you could be wiped out in one day if the market moves against you.

On the third option, you can buy a 1/4 ounce gold coin, hell even smaller...so the investment is entirely up to you. You can start out with just a few hundred dollars.
 Quoting: Saddletramp



I agree with much of this, but will add a bit.

If you do want to go with an ETF-like investment (#1 above), I would suggest avoiding GLD. PHYS (Eric Sprott's fund) and GTU (run by the same folks that run CEF... which is also a good option, but half gold, half silver) are better options in my estimation. They at least likely hold the physical gold bullion, with no funny business in their prospectus like GLD (and SLV) has. Sprott's silver fund is "PSLV".


A #4 option is to have a private company store your allocated gold (or silver) bullion outside of the US. This could be an attractive option if you don't like holding all of your bullion within your country's borders (US, for example). The two options recommended by Jim Sinclair (of jsmineset.com) are:

-Singapore Precious Metals Exchange (sgpmx.com)
-GoldSwitzerland (goldswitzerland.com)

Sinclair recommends the following for contacts: [email protected] (for Singapore) and [email protected] (Egon Von Greyerz for GoldSwitzerland).

James Turk is associated with "GoldMoney.com", which might also be a decent option to accomplish the same thing.
Anonymous Coward
User ID: 9094168
United Kingdom
11/03/2013 02:01 AM
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Re: How to invest in gold?
How to invest in gold?what would be a good minimum to start?
 Quoting: Anonymous Coward 49031408


go to kitco.com and check out the forums.

lots of advice there.

either buy coins, or nuggets or both - whichever you wish.

Some people buy coins in a series, such as animal series.

Anyways, go there first and read the forums.
Anonymous Coward
User ID: 15483798
United States
11/03/2013 02:04 AM
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Re: How to invest in gold?
Buy a couple of ounces of silver with every paycheck.
Once you get to around 60 or so, trade them in for an ounce of gold. (but I'd just stick with silver. More divisible)
 Quoting: Sikhed


If I gotta bugout, I can carry a few lbs of gold easily but a few hundred lbs of silver gonna be tough.....
Anonymous Coward
User ID: 49163339
United States
11/03/2013 02:07 AM
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Re: How to invest in gold?
Buy a couple of ounces of silver with every paycheck.
Once you get to around 60 or so, trade them in for an ounce of gold. (but I'd just stick with silver. More divisible)
 Quoting: Sikhed


Yup, how do you expect to get change on your bar of gold?
 Quoting: Anonymous Coward 49361477


Doesn't have to be a bar...can be 1/8 ounce coins...
 Quoting: Saddletramp


They sell 1/10 oz eagles and there are 1/20 oz gold coins available.





GLP