Your Questions About Invest In Gold Mines

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David asks…

How do you sell gold? Everyone keeps telling me to buy gold, but what if the world doesn’t end?

More to the point: without taking a massive loss. Looks like to me that whenever you sell gold (barring an apocalypse) you lose. If you had bought it back in 2000 for $600/ounce and sold it now, you would only break even. Even though it’s hovering around $900 to buy it!

Justin answers:

You can invest in gold in a few ways:

buy actual gold. But then you have to find a place to store it. That costs money.

Invest in gold mining stocks. As the price of gold goes up, the price of these stocks goes up (usually)

buy a gold ETF, such as ticket symbol GLD.

Check out my blog for more investing ideas:

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You can also chat with me via my blog if you have any questions.

Steven asks…

What is the best way to invest my unexpected $5,000 bonus?

Blue chips? Currency? Gold? Should I go through an investment manager or do it myself? Thanks for your time!

Justin answers:

Unexpected? GREAT… Then you won’t miss it if you ( wisely) get most of it into a ROTH IRA…. Sock it away…let it grow, grow, grow.
You don’t need a manager or advisor… Log on to E*trade or Scottrade… Fill out an application on-line , send a check…in a couple of days you have your account…on your screen…ready for you to pick your investment (s) …
Sooooo…while you’re waiting those couple of days…jump around on- line to financial sites at yahoo, msn, CNBC, moneycentral, or buy a copy of Investors’Business Daily,
Get some idea of what a mutual fund or some ETFs can do for you….
You CANNOT make a ” horrible” decision… You have years and years to recover…
Just some ideas: Fidelity ” sector” funds.. ” energy”, “chemicals” ” Latin America”….or ETFs in ” alternative energy” or metals/mining or agriculture
…. Or just a diverse international mutual fund..FGBLX
…or U.S. Companies…FAIRX
It is not complicated…it is not for financial ” geeks”… It’s for getting where you want to be down the road… Comfortable, independant, secure.

Mark asks…

Is there any stocks or mutual funds that could hedge a potential hyperinflationary period?

It seems logical to invest in mining stocks etc, but what other potential areas can I invest in?

Justin answers:

Gold and oil stocks should provide protection against hyper-inflation. A wise strategy in light of all the money the government will have to print to support the Obama stimulus plan and his socialistic agenda.

Personally I own Kinross Gold (KGC) and Marathon Oil (MRO). God luck.

Michael asks…

What is the best way to invest in Gold?

Say I want to invest 10% of my gross earnings annually in Gold.

What is the best most viable form to invest in? Example: Coins?

Justin answers:

How about going straight for the stuff? Consider the ishares ETF for gold: IAU. If the price starts falling, then simply sell out. If you start making a profit, then sell a few shares now and then to get your extra cash (don’t for get the tax man) from time to time. Another way is buy into gold mines. I’ve had a few: Newmont Mines, Richmond Mines, and Liberty Star Gold. Newmont made me a few bucks, Richmond was essentially neutral (they closed a field, but opened a field). As for Liberty Star, they’ve got a pile of mining claims but no mine. Mark Twain reputedly said of gold mines, his losing investment history was legendary, “It is a hole in the ground surrounded by liars.” So if you go that way, stick with those whose proven reserves and on-going production continue to make them profitable–like Newmont or Richmond (and there are piles of others).

Robert asks…

What is the best way to invest in gold?

Most brokers or internet trade agent doest not seem to support investment activities in commodities such as gold. What is the best way to start?

Justin answers:

The future growth is going to be seen in gold. As inflation is threatening to eat us alive- gold is the best friend you have. Forgive the pun, you truly have a golden opportunity to grab the best commodity on the market.. You’ll discover five ways to invest in gold!

1) Direct ownership (The best way). There is nothing like gold bullion, the ultimate expression of pure value. The best forms for gold ownership are through minted coins: one-ounce South African Krugerrands, Canadian Maple Leafs, or American Eagles.

2) Gold exchange-traded funds. The recent explosion in exchange traded funds (ETFs) presents an even more interesting way to invest in gold. An ETF is a type of mutual fund that trades on a stock exchange like an ordinary stock.

3) Gold mutual funds. For people who are hesitant to invest in physical gold, but still desire some exposure to the precious metal, gold mutual funds provide a helpful alternative. These funds hold portfolios of gold stocks-that is, the stocks of companies like Newmont.

4) Junior gold stocks. This level of stock is more speculative. Junior stocks are less likely to own productive mines, and may be exploration plays-with higher potential profits but also with greater risk of loss.

5) Gold options and futures. For the more sophisticated and experienced investor, options allow you to speculate in gold prices. But in the options market, you can speculate on price movements in either direction.

The ultimate dollar hedge investment will always be gold. Investing in gold through ownership of the metal itself, mutual funds, or gold mining stock provides the most direct counter to the dollar. As the dollar falls, gold will inevitably rise.

Paul asks…

could anyone please tell me the process of money investment in gold?

i wish to invest small amount of money as i heard invest in gold is profitable. does it similar as share investment?can i fixed deposit money on gold?

Justin answers:

The concept of buying/holding Gold has been followed for ages. Gold has been one of the most sought after precious metals for generations and people have been crazy about owning gold always. In olden days the amount of gold possessed by a king signified his power. In the modern times the amount of gold in the reserves signifies the strength of a country’s economy. It is an unsaid truth that Gold symbolizes wealth.

Gold as an Investment option is very attractive. When I was in my school my mom used to buy 10 grams of gold at the price I get her 1 gram now. That is how much the price of gold has gone up in the past 10 years. Also, gold is a limited resource. In India especially we do not have many gold mines that have been able to consistently produce as much gold as some nations around the world are producing. So considering these 2 factors Gold is a very attractive and a comparatively safe investment option.

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