Your Questions About How To Invest In Gold

Richard asks…

What’s the best way to purchase Gold & other precious metals?

Specifically, if you’re looking to invest in Gold, and want possession of the actual coins or bricks upon purchase (instead of just receiving a certifcate of ownership)

John answers:

Any large bank will offer you a range of services to buy gold, the usual routes are gold coins or even krugerands. Just walk into your local Citi or Bank of America, and ask to talk to someone about placing an order.

Taking physical posession is a relatively expensive way to get exposure to gold. You will have to pay a margin to which ever company you get the coins from, a fee to the bank, plus safe storage costs. There’s nothing to stop you keeping your gold at home, but no insurance company will pay a claim if you are broken into.

If you want to invest in gold I’d suggest you consider the streetTRACKS Gold Shares Exchange Traded Fund instead (symbol: GLD). It gives you pure exposure to the price of gold, and is much cheaper and quicker to buy (you order through a stockbroker, just like a regular stock).

Robert asks…

Investment in Gold bar. Is it the right time or should i wait for some more months?

I want to invest in gold bars. I heard that Gold rates would depreciate in the coming months. Is it True? Is it the right time to invest or should i be waiting for rates to come down.

John answers:

Nobody knows the right time to invest. Best policy is to adopt “Pound averaging theory”, that is, go on investing small amounts over a period of time, rather than at once.

Ruth asks…

Do I need a storage or safe to invest in gold?

I’ve never bought gold before, and would like to invest in buying gold. Do I need a physical place to keep the gold, or I only need an account at a broker and they keep track of my gold?

John answers:

If you buy physical gold, it is probably a good idea to have a safe or other secure location to store it.
A safe deposit box is safe, but you may not be able to get to it anytime you want.

If you buy gold and have someone hold it, I recommend GTU or CEF, you can read about them:


Carol asks…

What is the gold trend in 2010? How to project the gold trend what are all the factors determines…?

Is it wise to invest in gold now…? Can we wait ? What could be the somewhat right period for gold buying..?

John answers:

The “gold trend” cannot be predicted by quantitative methods. Gold markets are all based on speculation.

Paul asks…

Is it a good time to invest in gold now?

I am planning to invest in gold coins up to 5000 dollars and would like to know if it is the best time to buy now or shall I wait some more time? I see a down trend in gold price dont know why and would like some expert’s opinion on what to do at this time on gold investment.

John answers:

I think it is always wise to add gold coins. I think the dollar will be worthless someday and gold coins will always be valuable.

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