Your Questions About Invest In Gold And Silver

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Michael asks…

Does anyone know of an ETF that invests solely in a mix of precious metals?

I can find a ton of ETF’s that invest in a single precious metal but none that invest in a mix of gold, silver, platinum and palladium.

Justin answers:

Looks to me that the only funds that deal in a basket are using futures contracts instead of holding physical metals.

I found an Exchange Traded Note from Powershares;

Ticker “DBP”
Bear in mind that DBP is buying futures contracts, NOT holding physical metals.

Here’s the rest of what I found;

You may have better luck if you look for a Unit Investment Trust or perhaps a Closed End Fund.

Search “Precious metals UIT’s”

James asks…

How can a person determine the value of gold and jewels ?

Everybody loves gold, silver and jewels but one thing i was always curious about is what makes them so valuable ?? How can you determine there value ?? Since it`s bein traded more then ever on the stock market now, I think it a good question to ask so any input will help. Thanks !

Justin answers:

The value of precious metals like gold, silver and platinum is rooted in that fact that supply is limited and demand is ongoing. However, prices fluctuate, and, because money invested in precious metals does not earn interest, investment opportunities are limited.

Gold is primarily seen as a hedge against inflation or poor stock market performance. This is somewhat based on past observation, so it does not guarantee that gold will become more valuable during economic struggle. Investment opportunities for individuals include the stocks of gold-producing companies and mutual funds that allow for investment in several companies in the industry.

It is important to keep in mind that precious metals do not have any intrinsic value. While the value of stock is based partially on its expected future dividend stream, and real estate’s value is based partially on its ability to generate revenues through rental, precious metals have value only because (and as long as) other individuals desire them.

Thomas asks…

What is something worth investing into with good profit?

I know gold silver and stocks but trying too think outside of the box What is something worth investing that you can make a profit off of?

Justin answers:

You can profit from an increase in the underlying stock price. No one has a crystal ball to help you pick which stock is going to go up. See the first link for Yahoo’s free stock screener. Stock screeners can help. Do some research on which sectors are “hot.” Learn how to read key results from the company’s financials and analysts predictions. There are very important factors to consider:

5-Year Annual Revenue Growth > 15%
1-Year Revenue Growth > 12%
Gross Margin > 35%
Net Margin > 15%
Balance Sheet
Debt to Equity 1.3
Return on Equity > 15%
Normalized P/E 2%
5-Year Dividend Growth > 10%

Profit can be made without taking on too much risk by writing covered calls. You need to own 100 shares to write calls. Learn about covered calls at the second link. Use the third link to find stocks that are optionable.

Or you could get your profit from stocks that pay high dividends. But you need to keep your eye on the underlying value of the stock and get out if necessary. Use the 4th link for a list of high yield dividend stocks.

Good luck!

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