Your Questions About Invest In Gold Bullion

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John asks…

where can I find a RSS feed that shows a current gold PRICE PER OUNCE or CHART?

I cannot for the life of me find a gold RSS feed that shows a current gold price per ounce or a chart showing value of gold that I can paste into “add RSS feed on my yahoo homepage”. Can you perhaps? Thanks in advance!

Justin answers:

You may want to check it out with kitco.com or at the London Metal Exchange Rate site. They have the updated chart and current spot price of gold per ounce. If you want to know more about gold, gold bullion coins and gold investing try buypuregoldcoins.net

Steven asks…

Is Now A Good Time To Invest in Physical Gold?

With the upcoming economic upheaval, should gold be held in lieu of cash?
And will the FDIC be able to cover the coming bank failures?

Justin answers:

Yes you should own some physical gold. Gold and silver are money and have been for over 5000 years. There are many products you can own as far as gold goes. Coins are the best. Bullion coins in fractional amounts are good due to the fact that 1/10, 1/4, 1/2 ounce bullion coins are not required to be reported to the IRS. I personally own 1/10 ounce American Gold Eagles and pre 1933 $20 gold pieces. I loike the pre $20 gold pieces becaus ethey have outpaced all investment classes in the last 10 years. Year to date $20 gold is up 22% yet paper gold on the Comex is flat for the year. $20 gold pieces average about $1240 per coin right now. They cant be produced again. They cant be shorted in the market or subject to any manipulation. It is a cash and carry only market. Once you own gold even in small amounts you will feel safer. Up, down, sideways..it doesnt matter what the price does. At least you will have it and its not dependent upon anyones promis to pay.

FDIC will cover bank failures. But they cover it by debasing the currency that you are holding. Its called inflation.

James asks…

There are many adverts on TV for our unwanted GOLD so what are they going to do with the melted GOLD ?

Are they going to turn it into useless gold trinkets ?
It won’t be Pure Gold , with all different carrots of gold in it , will it ?

Justin answers:

Some will be sold for jewelery making but most will be turned into gold bullion – blocks of gold. Gold is a useful store of value which becomes more popular when other ways of investing become insecure or unpredictable. For example, I invested my life savings in an investment bond 5 years ago. It is now worth 80% of what I invested. Gold is a more stable investment in hard times. At present, people are buying gold as a store of value so the price is at a record high. That’s why they want your old gold.

Robert asks…

How does a Leveraged Gold ETF work?

This is what is called a 2x ETN. But, could someone please walk me through how a bank acquires the bullion, and then is able to reflect 2x the movement of the bullion to investors. Thank you very much.

Justin answers:

While a 2X response can be achieved with simple leverage (borrowing to invest), the multitude of funds that have become available over the years has been due to the broad acceptance of Modern Portfolio Theory made popular by Markowitz and by CAPM (Capital Asset Pricing Model). The 2X relationship is actually an elasticity (beta) in that it will tend to have a 2X response, it doesn’t necessarily will. Basically the funds can and do construct portfolios not only of futures contracts on the commodity itself but with equity and bonds that are statistically correlated to the spot rate of gold thereby being able to deliver the 2X response after their management fees have been taken into account. It would be a good idea to take a look at the prospectus of the ETF to see what their holdings and strategy is to achieve their results. Of course, if all you wanted was to get a 2X direct relationship to the spot rate, you can just buy futures contracts on margin (of course that would be using up your own margin).

Paul asks…

What’s the best and most secure way to invest in Gold Exchange Traded Funds?

Imagine if another depression were to happen.

Justin answers:

First I think you are very smart to be thinking of investing in gold. The easy way is to buy Gold stock like GLD with say at e.g. TD Amertrade. Even as high as gold is today I think it is under valued if you compare to the weak dollar and inflation.

For centuries, buying gold has been recognized as one of the best ways to preserve one’s wealth and purchasing power. Gold is a unique investment, one that has served mankind well for thousands of years. From the times of ancient Egyptians, Greeks and Romans to more modern times, man has been fascinated with the beauty and magic of gold, and with its power to change men’s lives.
Gold bullion is real, honest money…and, many say, the best form of money the world has ever known. It is a store of value and a safe haven in times of crisis. Gold is rare, durable and does not wear out in the manner of lesser metals (or paper!) when passed from hand to hand. A small amount, easily carried, can purchase a significant amount of goods and services. It is universally accepted, and can be easily bought and sold around the world.
Today, the beauty of a gold bar lies in its ability to diversify investments, protect wealth and preserve one’s purchasing power.
On.

Mark asks…

Where is the best and most reliable source to buy real tangible gold?

I’m just investing in my future.

Justin answers:

Good question. The US Mint has “authorized” resellers of the Gold Eagle Bullion Coin. I would recommend buying your Gold from them, since you are assured that its come straight from the US Mint via that reseller.

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