Your Questions About Invest In Gold Or Silver

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Mark asks…

What is an ‘assay’ when you buy gold or silver?

I’m looking to buy gold and silver bars, and some of them come with ‘assay’, I’m not quite sure what this assay is. Is it good to have one with the bar? Is it pointless? What is it and what are the benefits.

Justin answers:

Assay is a process to determine the purity or quality of gold.

Precious metals, commodities, and FOREX are terrible choices for novice investors. Wait until you learn a lot more! Read “Investing for Dummies” to start your education.

Buying and selling gold is almost always a ripoff for an individual.

Donald asks…

Can/How Can I buy Copper and/or Tin Bullion?

People invent in precious metals because they have intrinsic value that will remain, even after say a nuclear Holocaust.

While gold/silver have a lot of value, I was thinking that I could probably do better with copper and tin, they are easy to work with, and you can make bronze quite easily with them. I am aware that buying copper and tin is a poor investment decision, and won’t really help me in a survival situation, but what I want to know, is it possible to buy bars of copper and tin (say one or two), and where would I do it?

I say again, I want these bars purely for fun, not as any rational investment. Thank you.

Justin answers:

Best thing would be to go to a pawn/antique shop, buy a bunch of stuff made with those metals, melt them down, and make a bar.

Individual investors cannot just buy a bar of metal.. However since those metals are more common, go to Home Depot and look for them, ie. Copper Wire.

If you want to invest in them to make money because you think their price will go up, buy an ETF or a large producer/distributor of those metals, stock.

John asks…

Which of the following occurred as a result of Virginia being made a royal colony?

Which of the following occurred as a result of Virginia being made a royal colony?

1)Colonists had to pay taxes to the king.
2)It came under the direct control of the king.
3)Joint-stock companies became willing to invest in the colony.
4)The king received one-fifth of the gold and silver found there.

Justin answers:


Michael asks…

How much do you think gold/silver will be worth 33 years from now; another great depression in 2012 or 2013?

I hear people like Ron Paul and Mike Maloney, Robert kiyosaki, Peter Shiff, Jim Rogers saying buy silver because it’s an industrial precious metal and is running low on supply, plus our dollar will be worthless and hyperinflation will hit soon, your opinions?

Justin answers:

I agree — very silly.

30 years is just too far into the future for any intelligent prediction. It’s pure WAG territory. My guess based on the last 30 years is that gold will just barely keep up with inflation and silver have fallen behind it in 30 years.

My investing problem with the dooms-day-ers with a brain (Schiff, Rogers) is that they get the timing wrong often enough to send anyone without a commissioned based income to the poor house. If you end up bankrupt anyway, what’s the point of being right.

My philosophical problem is that, like Malthus 200 years ago, it really, really matters which facts turn out to be true in the long run and which turn out differently because of “unforeseen” circumstances.

As I have mentioned before, the dollar is already worthless, relative to the pre-Federal Reserve US Dollar. That is, today’s one dollar bill is worth less than 5 cents of the 1914 dollar bill.

And yet…

We are the richest, most powerful nation on the planet. Complete absolute devaluation of the currency and absolute wealth creation. Relative value seems to matter more. A lot more.

While I am certain that the US will not be the richest, most powerful nation on the planet forever…or even for the next 33 years…I don’t think that necessarily means the end of the world.

Joseph asks…

Why buy gold or silver if you can’t use it to buy things?

If you buy gold and silver to preserve the value of your currency, what is the point if you can’t buy anything with it? Say you get rid of all your dollars buying gold and you end up with 100lbs of gold coins presumably worth 2.5 million dollars (today) but you can’t do anything with it like buy a car or house or even food for that matter.

Why can’t you use gold as a currency/legal tender?

Justin answers:

Gold and silver at one point, was traded way back when. This was closer to the times when there was actually bartering instead of price tags on everything. It’s gotten to the point where most places only accept money because that’s the fluid way to pay for things.

The reason people buy gold and silver to “preserve their value of currency” is because money will constantly inflate, no matter what anybody says. As the U.S. Lives on the value of the Dollar dies slowly. Think about it. This is why all the senior citizens say “I remember when a coca-cola was a nickel.” Gold/Silver prices will almost always be on the rise though, along with the value of currencies increasing. So your net worth stays the same.

Basically a dollar doesn’t take you as far as it used to. So investing in Gold/Silver you can ensure your value to be maintained while you consider what you’ll spend it on over the years. If you really wanted that car or house you can sell a portion of your metal to buy it with money, and keep the rest. Also think about this. Say the value of the U.S. Dollar went worthless because of the national debt. Then you could have $2.5 million dollars worth absolutely NOTHING in the bank.. Or you could have $2.5 million dollars worth of gold/silver which you could use to start a new life in a new country, because somebody there would buy it from you with a different currency for sure.

Paul asks…

friend just inherited a substantial sum of money, any tips on what to do with it?

friend of mine inherited a large sum of money from an aunt, got some credit card debt but besides that its smooth sailing, anyone got any tips on what to do do with it? i was thinking either a cd, low risk mutual fund, or a commodity like gold or silver. friends nearing retirement so nothing too risky, thanks!

Justin answers:

First of all, tell your friend to NOT touch the money. Instead, have them put it in a cash management account at your bank. That’ll get good interest while they decide how to invest it.

They should check at their bank to see if they have a financial planner on staff. Sometimes it’s a free service, because the planner gets paid a commission when they set up the investment. They will be able to help your friend set up some investments to make the most of their windfall. They have expert knowledge and can help your friend draw up a financial plan that suits their income, their age, and their goals.

We really don’t know enough to recommend something. I would say diversify between some riskier investments (like shares) and some low risk investments, like cash. 20% shares, for growth, and 80% lower risk investments. But without knowing the details, it’s hard to make a recommendation.

David asks…

Is it a good time to invest in precious metals such as Silver, Palladium, Titanium, Platinum etc?

Is it better to invest in gold on a 1 year-5 year term on gold?
# Is it a good time to invest in other precious metals such as Silver, Palladium, Titanium, Platinum etc on a 6 months to 3 years term?

Justin answers:

The answer may not be as easy as the question. Commodity markets are very volatile. I would suggest you consult some reputed broking company which will guide your investments in commodity market. One such company is GEPL Capital which is a member of two main commodity exchanges and offers investors the ability to invest and trade in the Multi Commodity exchange (MCX) as well as the National Commodities Derivatives Exchange (NCDEX). The online trading platform provided by GEPL Capital is also very user friendly and convenient to use for monitoring commodities and other investments online.

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