Your Questions About Purpose Of Investing In Gold

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Mark asks…

Why do people think gold is a good investment?

I remember back in the 70’s gold was going for over $800 an ounce.

Now after almost 30 years it’s about $950 an ounce.

How can anyone say gold is a good long term investment??

I do have about 6 ounces of gold coins but I have it just because I like the look and feel of real gold.

Justin answers:

Sometimes the only answer I can give is that some people are stupid.

I agree its a horrible investment. Historically speaking gold prices have barely kept up with inflation. It had a few really good years but everything always averages back out. So all the people who bought gold as an investment during the good years are back to getting virtually no return on their investment. People who chase performance rather than riding out the ups and downs of long term investments tend to do poorly in investing.

The other reason I can give is that some people think gold will retain its value if the economy collapses. That simply isn’t true. Look at what happened in New Orleans after Katrina. If you had a gallon of gas or a bottle of drinking water, you could have traded it for anything you wanted. But nobody was running around looking for gold. In a collapsed economy, the first economic system to develop is a bartering system where people trade essential goods and services but precious metals that serve only for purposes of decoration become quickly worthless.

Donald asks…

How do you get the best texture when baking a cake from scratch?

I baked a cake the other day and it was really good, but I’d really like to get that soft, almost spongy texture you get with a cake mix. My recipe called for “all-purpose flour” and I just used the Gold Medal brand I had in my cupboard. Should I invest in some cake flour? Is the only difference between the two the protein content so I can use them interchangeably or do I need to know anything else if I try to use cake flour instead?

Thanks.

Justin answers:

Gold medal is cake flour and has been for decades. Soft spongy texture is acheived with pudding in the cake. Cake mix has pudding powder already in the dry mix, and then when you add the milk eggs and butter voila.

A cake mix in a box has a different texture from cake made from scratch; scratch cakes are made with real ingredients and cake mix uses oil instead of butter, parts of eggs instead of whole eggs, chemicals and crap..

That spongy texture is an acquired taste by the way….its something the cake mix makers taught us to enjoy since the 50’s and 60’s…..real genuine cake, besides angel cake, is thick heavy and dense.

William asks…

What to do when the dollar becomes worthless?

When the dollar becomes worthless, basic commodities will be extremely expensive. Many are yelling gold is the answer, but I am not to sure. What good does gold to for you when the country around you is falling apart and has destabilzed? Would it be wise for one to invest a large portion of his/her savings into basic commodities for survival purposes? Such as arms to protect your family, water, food storage, fuel, clothing, surival gear, etc? What are your thoughts. The dollar will fall as they are printing it non-stop. It will become undone. Take care and thanks for your thoughtful comments.

Justin answers:

The dollar may be falling but not as fast as many other currencies. If you really believe that the dollar is falling as you envisage and everyting you buy will become worthless, then you should go for owning real property and goods.

End

Robert asks…

How to invest $400,000 from a law suit settlement?

30 years old and do not need the money to live on.

Was thinking of buying a couple of foreclosures and sit on them as rental properties using up about 25% of the money for that purpose. Another 25% would go to the stock market to buy undervalued stocks of blue chip companies. Another 25% would go into Gold, and the last 25% would be kept in FDIC insured accounts.

Justin answers:

Go slow…and keep low
these are extremely volitile times, my friend…
And what “seems to be” is not necessarily what
it is….
DO make sure that this is all spread out in guaranteed
FDIC accounts of the lowest denominations for this first
step…. But, take it slow and easy and don’t make a single
move until you’ve run all the options…
This sum could be your future
or, it could melt away in a heart beat
caution especially at this particular juncture
is key !!

? ////

George asks…

is there any gold investment in Canada?

I want to invest in gold, where could I trade and exchange?

Justin answers:

You can trade futures through a brokerage in the United States that services clients worldwide. The most liquid medium to trade gold is through futures, whether it be for speculation or hedging purposes. You can gather information from www.expofutures.com

James asks…

How to efficiently transfer money from India to Abroad?

I have inherited a small flat in India that I plan to sell and transfer money to Europe. I would like to know my options. a. by bank transfer after paying the capital gain tax in India. b. take the usual hawala route but that I would like to avoid.

Could I for instance buy gold in India? Invest somewhere?? Anything out of the box would be much appreciated.

Justin answers:

Sending a Check from India to abroad
Remember that simply sending a Indian Rupee to someone outside does not work. The person located abroad will not be able to cash the check because of restrictions of Indian Government or RBI. Yes, you are right- you can receive a check in US dollars or other international currencies, RBI does not have a problem with that. But you cannot send a check in Indian Rupees. However you can send a check in US dollars or other international currency .To do this, you will have to go through the following procedure:
1. Go to your local Bank and ask them that you want a check in foreign currency. You will have to take a letter from the bank saying something like : you have a savings (or checking) account with them with account number so & so, and an amount of $500 US (or any other amount you want) may be debited from your account for the purpose of sending outward remittance.
2. With this letter you will probably have to go to other Branch of your Bank which handles foreign currencies. There you give the letter and fill out some form and wait to receive your check in US dollars or other currency.

What you should carry along with you :
1. You Passport.
2. Your Bank Account Passbook.
3. Reason for sending money outside and proof for that reason. For example, an email, or an invitation letter or any other such document.:>

David asks…

If you have some money for investment, what would be the the best in todays market?

Have some cash for investment purposes. What is the best for investment purposes today?

Justin answers:

GOLD and other precious metals is the safest and smartest investment you could possibly make. Forget the stock market, now is not the time to invest.

Charles asks…

Enquiring on the legitimacy of e-gold and if someone operates or deals with the same I would like to discuss?

This is in view of my wanting to invest or operate a account as to enable investing in companies who offer this option.

Justin answers:

In my opinion e-Gold is a legitimate company.

However they’ve recently run into problems with the U.S. Justice department because some of the people using the e-Gold system, “apparently,” may have funded their e-Gold accounts, shall we say, with questionably obtained funds.

If this { a questionable depositor} happened in the U.S. Banking system, the depositors account only would be frozen. However since e-Gold is a worldwide service and not a bank, the U. S. Justice department is way out of bounds trying to impose its laws on e-Gold customers out of their jurisdiction.

Here are some sites you may want to check out:

http://www.moneynetnews.com/articles/54/1/US-Government-Forces-E-gold-Redemptions—Seizes-Gold/US-Government-Forces-E-gold-Redemptions—Seizes-Gold.html

This is a site in Scotland that uses e-Gold:

http://www.1mdc.com/

e-Gold is not the only on line payment system/savings system that uses Gold/Silver.
I have had very good success using Goldmoney as a savings plan//investment plan since 2001.

It operates under the banking laws of the island of Jersey and their Gold/Silver is insured by Lloyds of London. They also do semi-annual audits for transparency purposes. They have about $198 million worth of Gold/Silver owned by account holders, in their system.

Http://www.goldmoney.com/en/sitemap.html

Good Luck!

John asks…

Where can i buy silver by the ounce?

Obviously, with time silver will increase in price per ounce. Currently it’s around $40 per ounce last time i watched the news (last night), as compared to around $1700 per ounce with Gold. I want to invest a decent amount of money in purchasing silver by the ounce, or maybe even by the pound. Where can i buy some silver?

Justin answers:

You can get some good deals at local coin and pawns shops below are some way to purchase silver

1. Morgan Silver Dollars

The Morgan Silver Dollars are by far the most widely collected United States Coin. The dollars which are 90% silver and contain nearly an ounce of the precious metal were struck from1878 to 1904 and then in 1921, were produced in the hundreds of millions far more than ever needed for the time period.

2. American Silver Eagle

The American Silver Eagles have been the official Silver coin of the United States since 1986. The demand for these coins has increased significantly in the last few years. These 1 ounce .9993 Silver coins not only hold silver value but a collector value as well.

3. Junk Silver

Junk silver refers to coins with 90% silver and 10% copper content. Because junk silver coins have value as bullion, legal tender, and at times as collectibles, pre-1965 silver coinage really is an excellent value for anybody wanting to keep some silver stocked away.

4. Silver Art Bars

Silver Art Bars are usually .999 pure silver bars sold in 1 thru 100oz increments the minimum value of the silver art bar is its raw silver value (the current melt price). The Silver Art Bars also carry additional value depending on the rarity of the silver art bar and its popularity within the collecting community.

5. Silver Rounds

Silver round are coin-shaped .999 pure silver bullion made by private mints not backed by any government for the purpose of silver collecting and investment. They are basically the same as the silver art bars as far as having both silver and collection value.

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