Your Questions About How To Invest In Gold

George asks…

What’s the best way to begin investing in gold?

If you are an experienced gold investor, I would like your opinion on how new gold investors should get started. Also, is this a good time to invest in gold, and what do you think the prospects are over the next year?

John answers:

Gold coins are the way to go. Latest prices you can sell at are published at They also sell coins at a little over spot price.

A word of warning. Watch out for fake sovereigns. There are a lot of these about at the moment with 9ct coins being passed for 22ct. The way to spot them is the difference in colour and they only way 7grams instead of 8. Deatils in a news story in source link

Chris asks…

what is everyone thought on investing in gold/silver or bitcoins?

have been investing in gold and have had success with it . however, i have been hearing about bitcoins and am wondering if this is indeed the way to go . thoughts?

John answers:

Gold and silver have a bit of a way to fall – if the idiots let it.

Let me ask you – if you have just spent $5,000 buying a measly few ounces of gold, would you be happy to sell it for $1,000? Didn’t think so. [If you have physical metal – hold onto it]

I’ve been watching gold and silver over the past 10 years. I’m fairly convinced that most of the sales of silver and gold are ETFs, and the value is highly manipulated. I reckon that all those poor dudes who bought precious metal ETFs are gonna be left with meaningless bits of paper soon.

Does this mean anything to the small-scale PM investor? If it’s physical… BUY! BUY! BUY! We’re in a recession just now – industrial usage is low, but will pick up when we come out of the dip. There are rumours of shortages in PMs. Once our economies stabilise, I predict PM values will rise.

Bitcoin is the new kid on the cash-block. It’s a virtual currency, which doesn’t exist in physical form. Just like conventional currency – it has value, only because it is accepted as being valuable. Supposedly it was set up by “The People” of the Internet to combat the “Cash is Trash” Banksters and fraudsters who seem to be on a never-ending print-run of money through Quantitive Easing.

Do you think these bankers and fraudsters are stupid? Do you think they’ll just sit there and wait for their own financial world to fall in around them? Don’t you think it’s possible that they’ll be investing heavily into Bitcoin, to make it seem a little unstable??? Whatever happens to Bitcoin – these people have the perfect ‘win-win’ scenario

Jenny asks…

Is investing in gold a wise choice as of now?

Our dollar is tanking while gold is skyrocketing in price by the day. Most people are investing in gold as it is clear there is a financial meltdown that is looming. But, how wise would this be? I mean, eventually, wouldn’t demand for gold decrease if total financial meltdown does not occur and thus drive the price for gold down? How wise would it be to invest in gold as of now?

John answers:

Gold is a bubble right now. It still may go up because of this latest scare and eventually the economy is going to have re-inflate at some point, so it’s a good bet. But sleep with one eye opened, bubbles burst fast and violently. I made if through the tech bubble crash and avoided the real estate bubble crash, so I am staying out of the gold bubble. You lose a lot of money in bubble crashes if you are still in the bubble when it happens. Perhaps, trade gold would be a better bet? I don’t have the stomach to chase bubbles anymore, the pain from the tech bubble crash still hurts.

Donna asks…

Is it safe to invest in gold in india?

Is it safe to invest in gold in india? I want to know whether i should buy ornaments or gold coin from the bank?

John answers:

India is currently buying gold, internationally for the same prices you are buying it here, so there is no economical advantage should your intention be one of an investor. In India, however, you could buy jewelry for less, due to the fact that the amount it cost to create the jewelry from gold costs less. Moreover, in India you will find higher Karat-ed gold, like 18K, 21K, 22K etc, that is very rare in the US. As for coins, it maybe harder to sell Indian Gold Coins in the US when need be, simple because they are not as familiar to us. For investment purposes, coins especially, do consider the American Eagles Bullion Gold and Silver. They are very liquid as most investors know of them and their worth.

William asks…

Is investing in gold a good idea?

I have a lot of money invested in mutual funds and am concerned with the recent drop in the stock market as well as the recent concerns with subprime lenders….do you think that investing in gold is a good hedging strategy? Do you think that the price of gold would rise if some of these lenders tank?

John answers:

When you say “invest in gold” you have to separate your ideas into “investment” and “Survival”

Gold as a metal is for Survival…If a catastrophic event hits the capital makets, or if WW 3 happens etc, you will need actual gold for some things (like jews fleeing the Nazis in WW 2) .

Gold in the form of ETFs or “GoldMoney” or certificates , or even gold coins or bullion in your safety deposit box, is not a good “Investment”. Shares in gold producing companies, or shares in a precious metals mutual fund is a good “Investment” if gold goes up. This is because shares in gold companies have leverage to the price of gold.

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