Your Questions About How To Invest In Gold

Daniel asks…

How do I invest in Gold?

I don’t know if it is better to take physical possession of the gold or just invest at a place like TD Waterhouse or Scottrade. I’ve never invested in Gold and have no idea how to do it. With all the shakiness in the market it sounds like it may be a wise thing to do.

John answers:

If you want to take physical possession call a place like Swiss America (800-BUY-COIN). If you want to trade gold, I believe you would just like other commodities, so then you can call a place that trades them like you mentioned TD Waterhouse.

I would advise it now, looks like the banks are collapsing and the dollar is going to be worth less.

Mary asks…

How do I invest in gold?

I want to invest in gold. What is the best kind to purchase? I see gold bars at 24K. Is that good? Should I invest in pure nuggets?

John answers:

The best way to own a precious metal is through a diversified metals fund, like the Franklin Gold & Precious Metals Fund or the Evergreen Precious Metals Fund. Another way is through a diversifed commodity fund, like the DWS Scudder Commodity Security Fund.

As for buying the bullion itself, good luck, you will never find a dealer that will give you it’s true worth when it’s time to sell, and anyway, why would near 30-year highs be a buying signal to you anyway? Are you insane?

Better to buy a diversifed series of properly asset allocated high-quality, low expense mutual funds. That’s how you should be investing, not jumping on some hot fad like metals. Gold and other precious metals should only ever make up 5-10% of your overall portfolio, depending on your risk tolerance. They are a good diversifer and an inflation hedge, not a way to get rich quick.

Hope this helps!

Helen asks…

Where can I buy and invest in gold bars ?

Why aren’t pple investing in gold? I found many dealers on internet that sell gold bars but I’m hesitant to purchase one rite now cuz I don’t know which company is trustworthy. I would appreciate if u tell me how to buy and sell gold bars.

John answers:

The era of buying gold directly is GONE forever.

Buy the exchange traded fund GLD.You get all the gains or losses from the moves in the price of gold and you don’t have to worry about storing and assaying the bar when you go to sell it.

See the chart at http://chartserver.fasttrack.net/chart1.asp?symbol=gld

Ken asks…

How to invest in Gold and Silver?

What is the best way to invest in Gold and Silver?
Are there any online Gold banks?

John answers:

EFT’s would be my suggestion.

You could buy the gold trust EFT on the NYSE. Its ticker is GLD.

There are 2 EFT’s for Silver listed on both the AMEX and NYSE:

SLV – Ishares silver trust EFT
DBS – Power shares DB silver EFT

I don’t recommend the Chicago Mercantile exchange for gold and silver futures as Answer 2 is suggesting because then you have to worry about futures contract expiry dates which isn’t a problem with EFT’s
http://www.cmegroup.com/trading/metals/index.html

You can also visit the following for gold bars: http://www.bullionvault.com/

David asks…

How is Kotak gold etf…should i invest in it?

i was planning to invest in gold etf. can anyone tell me is kotak gold a good way to invest? thanx

John answers:

All gold ETFs are the same. Thus the returns are also the same. The difference in most of then is the % of debt. Thus there is a difference in the NAV for all these four /five GOld ETF

only Benchmark ETF has 100 % Gold . I would advice Benchmark ETF for this reason

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