Your Questions About Invest In Gold Stock

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John asks…

What are some gold stocks to invest in?

Some gold stocks.

financi4 answers:

Here’s a few choices.

GLD exchange traded fund
Newmont Mining (NEM)
Gold Fields (GFI)
Barrick Gold (ABX)
Gold Corp (GG)

Ken asks…

What is the best way to invest in gold without buying buying gold coins.?

Also now that gold is so high what is the best way to invest in gold thru the stock market.

financi4 answers:

The Gold ETF:

George asks…

I have some money. Should I invest in gold now?

Do you think it’s a good idea as for now? If not, why?

And do you think I should invest in gold bullions or gold stocks?

Thanks a lot guys and God bless.

financi4 answers:

First off you need to understand that gold is not an investment. The best way to own gold is to buy and take physical delivery of the gold itself. Silver is also in the gold realm as well, so when talking about gold, silver is included.

It is always a good idea to own some gold and silver at all price levels. To truly understand gold and silver, and why you should own it you have to understand the economy and get the movie of life on the largest screen possible.

Gold is money and a store of value. It is the “Currency of last resort” as Greenspan has stated many times through the years. Gold doesnt pay interest, dividends, doesnt restate earnings, has no lawyers, accountants, CEOs or CFOs lying to you on television. Gold doesnt ask for bailouts, doesnt go BK and cannot cook its books. Gold cant be debased or printed at the will of a company or governmetnt and holds its purchasing power.

Gold sits there as a store of value, is labor intensive, and a one ounce coin will not split into a bunch of half ounce coins at the direction of the pin stripped bandits on Wall Street. Also Gold is the ONLY asset class in the last ten years to increase in value and retain every dollar of its purchasing power.

Gold can be bought in many forms. Coins are the best. I personally like the US coins in both the Gold Eagles and the pre 1933 US $20 gold peices. Gold Eagles are hard to find right now but $20 pre 1933 gold pieces are avalible from PTG at . This is the company I use and I like them and their radio show that airs every weekday.

Once you have physical gold and silver then ETFs or stocks are fine but I strongly suggest in holding physical gold for long term value and storage.

Cons to owning gold is it is subject to short term market manipulation by the Federal Reserve and bullion banks. This can cause the short term price to be pushed down as is being done today. This is why the paper price on gold verses the physical price is not he same today. Paper price today is about $830 an ounce but the physical price is ranging between $900 to $1200 depending upon the product being bought.

I personally stay away from bullion coins however I do own a couple ounces of them. Once you learn not to trust paper assets of anythign then you will understand gold and its value. Listen to the follow radio show to get a better understanding about gold and what it happening today in the economy.


William asks…

I hear some people say that you should invest in gold if you think the stock market will go down?

but from my observation:
More often than not; Gold moves in the SAME direction as the stock market, not the opposite.

Isn’t that right?

financi4 answers:

Gold has a huge speculative component simply because it’s gold and so well known but it is a commodity so in general it’s value reflects the rate of inflation which averages over the past 60 years as 4.5% per annum. To illustrate this, the prices of gold in the 80’s went to $850 per once and fell to $300 per once, today’s gold price is $1,658 per once so had you bought at $300 thirty years ago, you would’ve earned 5.86% per annum and had you bought at $850 an once 30 years ago, you would’ve earned 2.25% per annum. The apparent increase in gold value is really more a matter of it having languished in obscurity for two decades than any real significant gains. The idea of gold not being correlated to stocks and therefore a useful counterweight to assure a profit by portfolio rebalancing is true but it’s a variable quantity whereas bonds is assured to be non-correlated with stocks so it serves the role better despite more modest returns. To just invest in gold is stupid, to include gold in your portfolio is ok but you can do much better.

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