Your Questions About Invest In Gold Bullion

0
0
0
0
0
0
0
0
0
or copy the link

Steven asks…

Is gold a good investment or will the price of it go down?

I wanted to put a little cash away for emergencies but my husband insists gold is better.What do you think?

Justin answers:

Gold is not an investment in the traditional sense. Although its price fluctuates and you have the ability to make money on those price moves it has traditionally been seen as a “store of value.” In other words, gold is a place to store your money long term and not loose it.

Gold is counter cyclical to most other major investment options because it reacts differently to two main stimuli…inflation and the devaluation of the dollar. Both inflation and dollar devaluation are bad omens for almost everything else in your portfolio (stocks, bonds, your home, cash, etc) but they make gold move upwards in value. I generally recommend that clients have at least some percentage of their portfolio in gold because of this counter cyclical behavior.

If you are interested you can find more information (including historical charts) here: http://www.superiorpreciousmetals.com/include/investing_in_gold_bullion_back_1.cfm

Chris asks…

What is the smallest denomination of gold you would purchace?

You get less on your investment, the smaller denomination you buy your gold right? Do to manufaturing, packaging, whatnot. Therefore, bullion has larger returns in the long run than coins. So, whats the smallest denomination you’d go in for? And how much does that unit cost on average?

Justin answers:

Well in most places in teh US, you would go by the ounce. The smallest denomination I’ve seen is 1/10 (which is uncommon to find), but there is also 1/4, 1/2 and 1 full ounce using our units, but in some places you can buy them in grams and in those cases they are usually in bar form. Those come in sizes of 1, 2.5, 5, 10, etc. The premiums you’d pay for it are relative to the size in most cases, althoguh in generaly depending on who you buy from it’s more logical to buy as much as you can at one time rather than little amounts over a period of time. The actual value of gold however does not change based on the size of the gold bar, gold will still be 950 an ounce if you get a 1/10 ounce bar verses a full ounce bar, you just have less gold so you will make more if you invest more over time. But if you have like 10 1/10 ounce coins or 1 1-ounce coin you will still make the same amount of money either way.

Joseph asks…

Where can you sell gold without a fee?

So thinking of investing in gold, the type that I buy and get it directly so that I have no storage fees. So in say 10 years when I unbury this in my backyard where can I sell it? I know all those Cash4Gold rubbish places are not giving you what gold is actually worth. So please site some sources as I’ve looked a bit on the net and can’t seem to find anything concrete. Thanks

Justin answers:

There is not a fee to sell gold or silver back to market. There is only a fee to buy it. You are misunderstanding the spot price of gold and how it works. Unlike stocks, gold and silver have a spot price. The spot price in any given time is the difference between the BID (Selling back to market) price and the ASK (Buying from the market price). So if the Bid price is $1300.00 and the Ask price is $1302.00 then the spot price is $1301.00. The spot price ONLY refers to PAPER gold not PHYSICAL gold and silver. Now in addition to the spot price the PHYSICAL metals market has a premium on the physical metal. These premiums vary as to exactly the type of product being bought. Coins always carry a higher premium then bars. Then you have premium differences for bullion coins and numismatic coins. It is vital to learn and know the differences betewwn these types of coins.

As to where to sell back to market you can start with KITCO. Here is the link to figure out what each type of product they deal will will pay you if you sell to them. Https://online.kitco.com/selltokitco/selltokitco_USD.html
Other metals sites usually do not provide real time selling back to market pricing. However Monex has real time buying from market prices http://www.monex.com/liveprices so does American Gold Exchange http://www.amergold.com/

Now you have to learn exactly what products to buy and why to buy them. You need to lean which to avoid and why. Rule of thumb…..If you are in the US then only buy US Gold coins. Avoid coins encased in plastic numismatic graded holders. They are too expensive and are not woth the extra money in most cases. Aviod gold from other countries except fractional gold bullion Maple Leafs from Canada. For Silver avoid pre 1964 silver coins in large amounts. I personally only buy Silver Maple Leaf Bullion coins and Silver American Eagles.

Learn more by reading the Kitco Forums https://www.kitcomm.com/index.php

And listen to the following radion show from Patriot Trading Group. Http://patriotarchives.blogspot.com/ and read the news on Patriot Trading Groups website here. Http://allamericangold.com/index.html

Also you need to understand that gold is not an investment. Gold is and acts more like an insurance policy. You are insuring that something in your portfolio can never go to $0.00. All paper assets have the ability to go to $0.00. This is what you are insuring against. The only other asset to not go to zero is real estate. But real estate is illiquid. Because of the debt time bomb you better own gold. The best way to own gold is to buy and take physical delivery of the gold itself. Silver is also in the gold realm as well, so when talking about gold, silver is included.

It is always a good idea to own some gold and silver at all price levels. To truly understand gold and silver, and why you should own it you have to understand the economy and get the movie of life on the largest screen possible.

Gold is money and a store of value. It is the “Currency of last resort” as Greenspan has stated many times through the years. Gold doesnt pay interest, dividends, doesnt restate earnings, has no lawyers, accountants, CEOs or CFOs lying to you on television. Gold doesnt ask for bailouts, doesnt go Bankrupt and cannot cook its books. Gold cant be debased or printed at the will of a company or governmetnt and holds its purchasing power.

Gold sits there as a store of value, is labor intensive, and a one ounce coin will not split into a bunch of half ounce coins at the direction of the pin stripped bandits on Wall Street. Also Gold is the ONLY asset class in the last ten years to increase in value and retain every dollar of its purchasing power.

Do not look at gold in terms of price. Look at prices and money in terms of gold. Paper currency doesnt gain in value, neither does gold. In 1999 when gold was at $280.00 an ounce, a one ounce gold bullion coin bought about 400 gallons of gas. Today with gas prices up and gold at $1300.00 an ounce the same one ounce gold coin still buys about the same amount of gas. This is true for food, energy, and other basic items needed for living. The gold didnt gain value at all. It stayed the same. It only takes more paper to buy the same amount of goods and services. If gold were to fall say down to $400 an ounce again then that would mean all prices would fall as well. Do you see gas going back to $1.00 a gallon anytime soon? Look at gold as a currency and as insurance of buying power and a store of value not as an investment. Therefore dont worry about the price of gold in paper terms. As Alan Greenspan former Chairman of the Federal Reserve said ….

“In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.

This is the shabby secret of the welfare statists’ tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists’ antagonism toward the gold standard.”

Any other questions just email me.

Daniel asks…

What is a good site to see live price of Gold?

I want to see how gold is doing on a weakly basis. I am not familiar with investing in anything really, but have become interested in investing in gold, for some good reasons. I’m also curious where it is I can buy gold that’s trust worthy buying from. Thanks!

Justin answers:

This is a pretty good site for seeing the current prices for gold, as well as silver and platinum:
http://www.monex.com/liveprices
As for investing in gold, there are quite a few options, such as gold coins, gold bullion, precious metal IRA’s, and the list goes on. I would suggest getting a free consultation from an investment expert, to decide what is best, based on your investment goals. I like Birch Gold Group, and it’s totally free to call them: 1-877-506-6248, Monday to Friday. Good luck!

Mark asks…

Which is the cheapest and best exchange provider for e-gold?

I have an e-gold account. I want to know which exchange provider for e-gold is the best and cheap.

Justin answers:

Just buy the symbol GLD … It is an exchange traded fund invested 100% in gold bullion. Each share is 1/10 oz of gold. By far the simplest way to buy gold.

Personally i think gold is a waste.. But if i were to buy it i would simply buy GLD the same way i would buy stock.

If .40% a year and $4-$7 to buy is cheap enough. Unless you use a high cost broker lol ..

Some info:
http://www.etfconnect.com/select/fundpages/etf_funds.asp?MFID=137311#Fund%20Basics

Thomas asks…

Which is a better investment Rare Coins or Gold Bars?

Hi, I am interested in investing in physical gold. In your opinion, which is a better investment – Historic rare coins that have collector value or straight gold bars bought as close to market price as possible?

Justin answers:

How much time do you want to invest in research?

Buying historic rare coins requires you to do some research to know if you’re getting a good deal. You are also betting on two things, the value of the gold, and the value of the rarity. If you buy gold bullion, then, you’re just betting on the value of gold. I’d go for the pure gold bet if I was looking to bet on gold, since I don’t know much about values of rare coins. However, if you want to take the time to learn about rare coins, you have the possibility of increasing your wealth from two sources with rare coins.

Then again, you could also invest in gold mineing companies which would make more money when the price of gold goes up, and are easier to store and trade than gold bars.

I hope that helps.

Ken asks…

Which type of American Eagle gold coin is best for investing?

We’re looking into the uncirculated, the proof, and the bullion, and we’re confused as to which of these is the best investment. Also, does the “bullion” variety cost more?
We’re not coin collectors, so the look of the coin isn’t as important as the coin’s investment value. Thanks!

Justin answers:

Since you are not a coin collector, buy that coin that has the least mark-up as against the spot price of gold. That means you want to buy bullion coins, which is the term used for coins bought for the investment value of the precious metal and have no numismatic premium.

Powered by Yahoo! Answers