Your Questions About Invest In Gold Bullion

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William asks…

What should I do with $18k in my checking account?

It’s just sitting there right now not collecting interest or anything…I already bought a few troy ounces of gold bullion and a kilo of silver bullion as investments, and have a few grand in cash lying around in addition to this account…so what can I do to put my money to work?

Justin answers:

How old are you? Do you have an emergency fund of 6-8 months living expenses in the bank or credit union? Have you paid off your credit card debt? Until you’ve done these, you have no business investing in anything.

Gold and silver are not investments. They are hedges against inflation.

You are putting the cart ahead of the horse. Emergency fund first, then fund your 401k to the max, then a Roth IRA. THEN you can think about investing spare cash.

Thomas asks…

What way is the best way to invest my money with a monthly return?

I would like to deposit a small nest egg with a monthly return how much would I need to put down and where is the best place to invest my money with little to no risk… Ie I do not want to invest on the stock Market

Justin answers:

I think, with expected inflation going up steeply in the coming months or years, investing in gold is not a bad idea. Thre has been so much inflow moeny due to stimulus packages by various govenrmetns tto such an extedn that soooner than later there would be too much omney chasing few goods—- inflation.You are quite moving away from stock market. The uncertainty in the equity markets has jumped the gaps into the rest of the capital markets. The wild fluctuations in investor sentiment are not likely to end any time soon and therefore, traders are looking for ways to reduce their exposure to the risky market. One of the ways invest in gold which can be directly through bullion or coin ownership or indirectly through gold exchange-traded funds, certificates, accounts, spread betting, derivatives or CFDs etc. For further details please see. Http://hubpages.com/hub/Gold-Trading

Ken asks…

What are three important current uses for the metal gold?

I’m doing a project for my chemistry class, and we are all assigned a metal to do research on. What are the three most important and current uses of gold, besides conductivity and jewelery.

Justin answers:

Gold Uses

Gold is an ancient metal of wealth, commerce and beauty, but it also has a number of unique properties that make it invaluable to industy. These properties include:

Resistance to corrosion
Electrical conductivity
Ductility and malleability
Infrared (heat) reflectivity
Thermal conductivity
Gold’s superior electrical conductivity, malleability, and resistance to corrosion have made it vital in components used in a wide range of electronic products and equipment, including computers, telephones, cellular phones, and home appliances.

Gold has extraordinarily high reflective powers that are relied upon in the shielding that protects spacecrafts and satellites from solar radiation and in industrial and medical lasers that use gold-coated reflectors to focus light energy. And because gold is biologically inactive, it has become a vital tool for medical research and is even used in the direct treatment of arthritis and other intractable diseases.

The demand for gold in industry is steady and growing. The supply of gold from stored inventory and from mining operations is limited and will remain so. Demand from investors who want to posses this precious metal is steady, and increases during periods of world crises or instability. The result is a market with much more upside potential than down.

Gold is an excellent hedge against inflation, and protects earnings for the future. Modern investors can invest in gold the traditional way — by purchasing gold bullion in the form of bars or coins — or they can trade in gold or gold futures electronically, or by investing in gold mining or refining companies.

Steven asks…

Should start investing gold with bullionvault website or should buy the actual gold from gold dealers?

I’m a first time gold investor

Justin answers:

You buy the physical metals and take delivery… Every time. APMEX is good, and so is Midas Resources. Other than that, you hit your local coin/bullion store with cash.
By all means, consider buying silver, too.
Don’t spend your money on it unless you can hold it in your hand. The lesson from MFGlobal should teach you that… And there is a lot more of that to come!
You can still get good pricing right now… The metals banks (COMEX, CME, NYMEX, LBMA, etc.) are manipulating the spot prices by printing lots of metal on paper, and they are all SHORT! Some are naked short, as in having nothing in the vault!

David asks…

Is it worthwhile buying gold bullion as a short term investment?

I would be looking to buy roughly £5000 GBP of bullion every six months for a period of three years. At the end of this period am I likely to see a substantial gain or loss on my investment?

I am investing with the aim of putting down a deposit on a house after 3 years and am looking at alternatives to using a savings account.

Thanks.

Justin answers:

It is probably NOT sensible speculating with money that you know you will need in the future.
There is risk that the investment will lose money. Let’s say the value is only £3000. How would that affect your house purchase?
The other way of looking at it is this: Bank deposit: In 3 years the interest adjusted for inflation is going to be negligible. The gold will be a hedge against inflation but it’s capital value is at risk.
Why not buy Palladium?

Richard asks…

Whats the future of GOLD in next 4 years?

I am thinking of buying some gold bullion but im not sure if its a good idea…let me know plz.

Justin answers:

The consensus of most metals analysts is that gold has no downside risk. The U.S. Cannot hold off a currency meltdown much longer. Those that invest in gold will be the next generation of wealthy. Personal preferences are the 1/10 american eagle, to avoid 1099 requirements and barter.

Michael asks…

Why can’t you just melt gold nuggets to bars and turn a profit?

I see gold nuggets online for around 38 dollars an ounce, or gold dust for less. However gold is basically 1,000 dollars an ounce.
So why not buy the gold as dust or nuggets and melt them into bars. And then sell them for the 1,000 dollars an ounce price?

What am I missing here?

Justin answers:

First off, you are missing karat purity. While you may be able to buy scrape gold on eBay for “pennies” it is no way bullion. Gold bullion is 24k 999.9 pure. You may notice gold ingots for sale as well in various increments 1g,5g,10g,etc. Ever notice how much people are willing to pay for this, on average $135.7399 for 1g, which is just plain absurd. Considering that if you were to purchase that straight up all the way to an ounce you would literally be throwing hundreds of dollars in the garbage. As far as buying gold anything in that small of an increment even owning 10oz is pretty much a waste of money that could be more wisely invested. Most professional investors buy gold to help fight inflation not profit. In order to profit you want to buy trading power of gold not physical bars for storage. If you are considering this go MONEX they will help you decide what is best for you and your money

Charles asks…

What is the best way to buy small amounts of precious metals in coin form?

Going to invest in this, instead of government “IOU’S” in the form of paper money….

Justin answers:

Well, there are a couple of ways to do it.

One is to go to a local coin shop, and buy from them, or you could buy on-line.

Either way, you want to pay the least over “spot” that you can for the amount you’re going to spend. I checked one of the big on-line sellers, and their markup over spot for 1/10 ounce gold bullion coins is 65%, and it’s 45% for the 1/2 ounce coins.

What that means is that if you buy half ounce gold coins from them, the price needs to go to nearly $2500/ounce (in 2012 dollars) before you break even. It would need to go up to nearly $2700/ounce on the 1/10 ounce coins.

Unfortunately, a lot of people got sucked in back in the 1980’s during the last run-up in precious metals. The people who bought at the top of the market _still_ haven’t made their money back, because the price of precious metals goes down when the economy is better (and before you start thinking “But it’s different this time–there’s no way the economy is going to get better, and the dollar may collapse”, that’s _exactly_ what was being said in 1980. I’m old enough to remember it.)

If the places you’re getting your information from are only talking about the potential for gold to “go through the roof”, then you’re only getting half the picture–and that’s a bad way to choose your investments.

I’m not saying you shouldn’t buy any gold or silver (I’ve got some of both), but don’t make it your only investment, and really know what you’re doing before you pull the trigger.

George asks…

Can anyone tell me how to buy gold bars?

Iam looking into buying gold bars, is the internet a secure way to buy bars. What other experience have people had with gold bar purchases.

Justin answers:

Dont buy gold online, they will rip you off
if your going to invest in gold or silver bullion i would contact your bank about it

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