Your Questions About Invest In Gold Bullion

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Paul 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 or not ? currently its at US$1,376 and the Goldman Sachs predicts it will be US$1,650 in 12 months..?

“Goldman Sachs said that gold will benefit from the so-called Quantitative Easing and forecast US$1,650 an ounce in 12 months.”

I’m not sure if i should even believe Goldman Sachs ? let me know plz.

Justin answers:

Generally, over the last 10 years, gold has climbed and climbed.
(I’m quoting US dollars.. But it should be generally the same trends all over)

Gold – like other commodities – is a very volatile investment.
As with any other investment, you should do your research, know what you are buying, and only invest money you can afford to lose. If you need a guaranteed profit, invest in government bonds or some secured vehicle.
If you are a gambler, you could view this as gold on “a long winning streak’.
Or, you could look and say that gold is now priced higher than in 50 years. (possibly -ever- but I can’t find that much history quickly.)
Gold buyers in the 1970s were thrilled when gold climbed above $800 around 1980. After that, the price dropped to about $300 in late 1982 – then fluctuated between $300-$500 until 2007.
The price has been trending upward ever since.

Generally, Gold goes up when finances are uncertain and people want “hard money”. Wars, depressions, even oil and sugar embargoes can upset the economy enough to influence Gold.
If people are happy and working,, then gold drops.
IF anyone finds a new source of gold – gold drops.
If the conditions we have today; wars, nuclear posturing, massive unemployment and high taxes… Then Gold may be a good investment.

As to GS – please. GS is motivated by profit. GS lost tons of $$$ and took part in the bailout of US finances – while still overpaying employees. Whether Gold (or any other investment) goes up or down – they charge a fee to everyone who buys, and to everyone who sells. They make more by encouraging trading, and they don’t care whether prices go up or down.

Chris asks…

What’s the best way to purchase silver metal?

I’d like to eventually hold about 5% of our assets in metals, and silver seems an easier place to buy in (not to mention less inflated than gold). Is it better to purchase virtual shares online, or to buy silver from a local jewelry store or metals dealer?

Also, will the price of silver vary depending on seller or is there a strict ‘market price’ of silver metal?

Justin answers:

You will probably be better off buying the silver etf, SLV, instead of investing in silver coins or bars. The problem with owning metallic silver is that it is extremely bulky to store, unless you own only a small quantity. I personally own about $1,000 face value of old 90% U.S. Silver coins. They almost completely fill one large safety deposit box. The annual rent on the box is an extra expense that you could avoid by buying SLV instead. You may also get a better price buying the etf, rather than buying coins from a dealer. Dealers tend to charge large mark-ups above the bullion price in order to make a profit.

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