Your Questions About Invest In Gold Mines

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

Daniel asks…

Question for investors who are investing in precious metals?

What advice would you give to people who are barely making it living check by check, but understood the importance of investing into precious metals ? I know it used to be $6/ oz as I remember but I think with $40/ oz ….

Like people are on $1000.00/mo – $1300.00/ mo income. I know you can say just get a better job or start budgeting. But I need more detailed examples on how one can do this thing within a budget.

Justin answers:

Well, most folks are getting almost no interest in cash and even though gold has been going up, it’s no where near it’s all time highs on an inflation adjusted basis. It has a bottom under it in that it costs miners several hundred dollars now to extract the gold from mine to end user. If the economy gets better a rising tide lifts all boats and the need for luxury items so gold will go higher. If the economy tanks and the feds put more quantitative easing in the monetary system then gold will also rise seems to me like a win win situation, although in markets correction do happens for reasons one never can know why.

Personally look for a mining company, there are several quality ones out there. You can start a brokerage account for as little as $500 and add to it and purchase additional shares, some miners even pay dividends and are larger capitalization companies. Or you can do some research and look into a lower priced miner; but I would certainly avoid those considered more risky in the sector.

Or perhaps even look into an ETF where the shares aren’t too expensive and you can add more gradually, a name like (RJZ) ELEMENTS Rogers Intl Commodity Metal ETN (RJZ).
Closed under $13 a share right now.

“The investment seeks to replicate, net of expenses, the Rogers International Commodity Index ?? Metals Total Return index. The index represents the value of a basket of 10 metals commodity futures contracts.”

Here are some larger cap miners that appear well positioned
http://finance.yahoo.com/quotes/bhp+rio+au+abx+fcx

Lower Priced miners
http://finance.yahoo.com/quotes/ngd,gpl,gbg,auy,ng

Powered by Yahoo! Answers