Your Questions About Invest In Gold Bullion

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Daniel asks…

Can you find out if someone owns gold bullion bars through public record?

Is there a way to find out if someone owns gold bars through public record? Is there any way to track if someone has a caymen island account?

Justin answers:

No!

With US interest rates being cut, the dollar will keep falling and US gold should go over $1,000 per oz! Personally, I also invest in real gold nuggets. The larger nuggets are very rare and command a premium over spot gold. My favorite site for gold nuggets is:
http://www.california-gold-rush-miner.us

David asks…

What is the best investment in a hyperinflationary economy?

Gold? Or other options? What is the downside / upside of investing in gold (GLD) or other commodities?

Justin answers:

I would have to agree with GLD as the best investment in a hyperinflationary environment. However, a portfolio of other commodities and commodity-related companies would be great from a diversification standpoint, with emphasis placed on those with the least exposure to economic activity (copper has high exposure to economic activity, while gold does not, based on what the commodity is used for). The downside of investing in GLD is twofold. First, it is a financial security, which means you do not take physical possession of the gold. While it is backed by reserves of gold, there is risk involved. Second, and more of a short-term perspective, the current deflationary environment will continue to weigh on commodities. However, utilizing a dollar-cost averaging strategy into GLD in the current environment will give you a great long-term cost basis. The upside is basically the liquidity, as GLD is highly liquid, meaning you can invest/divest during market hours on any given day, something that can be difficult when actually taking possession of gold bullion. I would imagine I am thinking along the same lines as you as to potentially strong inflation in the intermediate future because of the amount of monetary stimulus that has been injected into the system. For that reason, I have been investing in a lot of commodity-related companies, which have become extremely cheap because of the weakening fundamentals and high exposure to hedge funds, which have had significant redemptions, causing forced selling of the commodity-related industries. I sold my position in GLD recently, however, with the recent decline, I am looking for a new entry point around the $71 level. Just some thoughts, I hope they help.

Best of luck!

Joseph asks…

Is it safe to invest in gold in india?

Is it safe to invest in gold in india? I want to know whether i should buy ornaments or gold coin from the bank?

Justin answers:

India is currently buying gold, internationally for the same prices you are buying it here, so there is no economical advantage should your intention be one of an investor. In India, however, you could buy jewelry for less, due to the fact that the amount it cost to create the jewelry from gold costs less. Moreover, in India you will find higher Karat-ed gold, like 18K, 21K, 22K etc, that is very rare in the US. As for coins, it maybe harder to sell Indian Gold Coins in the US when need be, simple because they are not as familiar to us. For investment purposes, coins especially, do consider the American Eagles Bullion Gold and Silver. They are very liquid as most investors know of them and their worth.

Thomas asks…

What do you think of gold as an investment at the moment?

Hello do you think gold bullion bars & coins are a good investment .or overpriced.

Justin answers:

In April 2011, prices smashed through to record highs of $1,532.91 an ounce, since then, gold prices have continued to climb and are now reaching even higher heights.
Investing in shares carries greater risk and gold mining shares have fared worse than the gold price. A regular recommendation among advisers is the Blackrock Gold & General fund, previously known as Merrill Lynch Gold & General.
It makes sense to buy gold when its price is low rather than high. Many people are tempted to buy gold when they hear that the price has risen. Although this can be the right action if the price continues to rise, it is often better to buy after the price has fallen. Conversely, if you believe that the time is right to buy, then don’t wait and try to buy it at the absolute bottom, you are very unlikely to get it precisely right. We have heard it said many times that if you can buy within 10% of the bottom and sell within 10% of the top, you would be a very successful and happy investor indeed.

John asks…

Why does copper and nickel bullion sell on eBay for 10x above spot price?

Yet gold and silver bullion usually goes for something very close to the spot price?

Why would base metals trade at such a high premium in eBay while precious metals do not?

Justin answers:

Copper is much less expensive than silver and gold. Thus more people can afford to invest in it. They drive the prices higher than they should simply because they want to get it while they can. Your average person on the street couldn’t afford to invest in a ten pound silver ingot. Copper is a different story.

It’s a little like gold fever. People know they can go to the bank and buy rolls of pennies and pull out the copper ones but still they buy more pennies for more than they are worth on eBay. They have caught the bug and can’t help themselves.

Robert asks…

Do you think copper will skyrokcet like gold and silver?

Hello,im investing in silver.But when i look at copper i wonder if that’s going to go up like silver did,A while back silver was 3 dollars an oz,gold was 30 a long time ago.Do you think copper will do some thing similar?I mean i have a hard time believing because copper is so widely used,but every one thought investing in gold and silver back then was silly,people who did made a fortune.So whats the probability that copper will go up sharply?I have some copper and i was wondering if i should sell it at the scrap yard or save it,Thanks.

Justin answers:

I don’t think that the price of Gold is tied in any way to the price of Oil… What is common to both is the US dollar and it is the valuation of that currency not the relationship of Gold to Oil that has some effect…but not the total effect.

Gold and silver are precious metals and aside from Jewelery and a tiny bit of industrial use they are viewed as metals of refuge in times of trouble, so emotion drives the price quite a bit. Copper on the other hand is about 95% industrially driven…it is the backbone of a lot of industries…electronics, power utilities…the list goes on. It is not a rare metal as is Gold and Silver…it has no pressures of scarcity.

Some people mistakenly think it is a precious metal and “invest” which in my opinion is ridiculous.

First off just look at the bulk of a $1700 investment

Gold would be approximately one troy ounce coin or wafer
Silver would be approximately 57 troy ounce coins or wafers
Copper would be approximately 480 pounds in bars

Where are you going to store 480 pounds of copper metal??? Not in a safety deposit box as you could with silver or gold. In a public storage rental I suppose or your garage/basement probably.

A scrap metal dealer is really the only place to sell it.

Here is a website for Gold/Silver ( this is not an endorsement of the company there are many many sites)

http://goldsilver.com/buy-online/

Notice how as you scroll down the page…you are shown what they will sell the gold/silver products for and UNDERNEATH they show what price they will buy it back for….THEY WILL BUY IT BACK. Yeah the price is less for what they sell it for but it is pretty close AND THEY WILL BUY GOLD/SILVER

Now let us look at Copper (again this is not an endorsement…many sites sell copper)

http://www.copperbullioncoin.com/

Read this page….it is ALL about selling you COPPER…NOT one word about buying it back from you. Copper is NOT RARE…they don’t want it back to resell.

Http://www.copperbullioncoin.com/categories/Copper-Bullion-Bars-and-Rounds/?sort=featured&page=2

Aside from the FACT that they don’t want to buy it back….no indication of a buy back price.

LOOK AT THE PRICES THEY CHARGE!!!!

We shall consider the first one

10 one pound .999 fine copper + 10 one ounce rounds = a little less than 10.6 pounds of copper
YOUR PRICE = $97.50 or about $9/lb

You are paying almost 250% markup on this investment….Copper is only $3.66/lb (I just checked)

Where is the investment in that??? It has to increase 2.5 times in value to the point where the ONLY buyer (the scrap yard) will take it off your hands and you get your money back. Copper has NEVER been worth more than $4.75 in its history…your garage full of copper will stay there forever.

Look at that site for selling Gold/silver again

Gold buy it at $1743/troy ounce sell it back to them for $1642.41/ troy ounce…the spot price for gold is now $1658/troy ounce

Silver buy it at $36.21/troy ounce sell it back to them for $32.20/ troy ounce…the spot price for gold is now $31.18/troy ounce

sounds like silver is the real deal, eh….don’t forget that gold/silver prices are not updated on week ends is my guess

BUT IS THERE 250% MARKUP in the GOLD/SILVER buy prices….not at all.

I am not an advocate of buying the precious metals particularly…but tell me…after reading this…is COPPER Bullion an investment.

I hope the answer is NO.

William asks…

How do you invest in gold?

Do you just go to jewelry store and buy a bar or gold and keep it in your closet? or is like other investments where you go through a brokerage but you don’t actually keep the gold with you?

Justin answers:

Yes buy gold bullion if you would like to invest in gold. You can find these companies all over the us, especially new york. Right now is a waiting peroid, people are just waiting to see whats going to happen with gold because they arent sure if its safe enough to invest in right now due to the economy. The best bet is to look out for the stock quote for gold and monitor any unusual rises or drops. As of now it is not safe at all so dont even bother.

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