Your Questions About How To Invest In Gold

Jenny asks…

where can i buy gold?and why should i invest in it?

I live in Ireland and i want to buy some gold, i dont really want to go online for it so where can i buy it have it physically ordered? a bank? a jewellers? also i live in a small town, i wanna invest in gold, but i cant cut a piece of gold off every time i want to buy food, yeah i have money to get by with and i understand the value of gold as protection from economic collapse but what good is a chunk of shinny metal when i have all this cash, how do i break change on a half ounce of gold u know, its not practical. i invest 2200euro in 2ounces of gold what returns can i expect, realistically 200/300 an ounce thats terrible return on investment, why should i invest gold
You talk alot of sense Azral, inflation is going to go through the roof, Gold is heading for +2K an ounce i want the security and to make a some profit, gold will never bubble its the measure of all worth in this world, sadly. im just worried about being stuck with it like i see these people trying to sell their silver after getting caught up in that rush. i know 2200 isnt much, i meant to put 2500, but its enough

also the other guy who said if you buy gold with this fiat currency when it goes belly up you can trade it in for the next money thus preserving you wealth, this is another reason why im intrested.
I sleep when im tired Jerry

John answers:

Are you wanting to be physically holding the piece of gold in your hand? You can still purchase physical gold online, just that your broker would be holding on to it for you. In either case, the cost of purchasing and storing physical gold is not cheap. The costs you incur would probably outweigh the benefits. Both a bank or jeweler can do it for you, but don’t expect it to be cheap.

Gold isn’t practical to be used to exchange for goods, which is why people invented money. It is much more convenient than to try to shave off and measure fractions of an ounce of gold to buy a chocolate bar.

If you are getting 200/300 euros an ounce return for each ounce of gold you’ve bought, that’s almost 10-15% return. Is it that bad? In theory, your return should be nothing since you’ve just avoiding losing value by not holding a depreciating currency. The value of gold should be stable… In theory. Also, 2200 euros is not a lot of money when it comes to investing, so you shouldn’t be expecting to get rich from investing in gold.

The only reason to invest in gold is if you think the price will keep rising.

@Michael Wiseman: how does gold have intrinsic value? It’s value lies in the faith of the people as much as paper currency does. If I gave you a pound of gold, what can you do with that? Eat it? At least I can use paper currency as toilet paper when it really comes down to it. Gold is one of those commodities that everyone BELIEVES to hold value when it truly doesn’t. No, you can’t print gold out like paper currency, but what’s the value in a shiny piece of gold? There’s very few things a common person can do with gold, and the biggest one is to look at it because it’s shiny.

Other commodities such as corn, sugar, wheat, oil are actually useful and are consumed in every day life. These things have intrinsic value because they are required to be used by people. Gold has very little intrinsic value (and for the people who claim it does, it doesn’t). Actual demand for gold lies mainly in jewellery and a bit for coating electrical connectors. “Investing” in gold otherwise is purely speculation.

Paul asks…

Are there any safe ways to invest in gold, and how do I cover my losses incase gold price drops?

I would like to invest in gold, but am worried the price of gold may fall again.

John answers:

The safest way to buy gold is with physical bullion. You’ll be able to net gold near its spot price, and keep it in a secure place in your possession. This leaves no doubt about whether or not your gold is really there are or not, as in the case of gold backed certificates and digital investments. The main drawback is the loss of liquidity. To sell physical gold, it may take time and energy to find buyers.

You can decrease your risk by diversifying the gold in your portfolio. Own physical bullion or antique coins, but also different types of liquid investments. Try ETFs, certificates, and mining stocks. It’s true that they could all still decrease if gold took a major hit, but your losses would be minimized. All investments involve risk. Your goal is to minimize it as much as possible, while increasing growth potential.

Linda asks…

Whats the best way to invest in gold?

I’m thinkin about investing in gold and have ab 2k I’d like to spend and this is my first time how should I go ab doing this?

John answers:

I’d suggest you wait. Gold is, by all appearances, in a bubble right now, and may lose value when it pops. Some will tell you that it will never go down, but that’s what they said about the housing market too. If you really want to invest, wait until the price drops and you’ll be able to scoop it up for a much lower price.

George asks…

How can I invest in gold bullion?

I would like to have some – a small amount – to keep at home, and the larger amount to be kept insured in some secure place.

Is this possible? How can I go about this?

John answers:

Gold is one of the best investments for all times.
Bullion you can buy trough at least several companies.
Make easy search for example “buy gold bullion” and choose for
But there is some inconviniences too -there is a some hefty comission involved upon buy and sell.
Also you have to worry about keeping it at home or paying safe deposits fee in the bank.
I thing one of the best way to own Gold is trough gold tracking stock -ticker is GLD- it tracks absolutely the price of gold.
If you wanna have some gold on your hand you can buy some gold coin.

Lizzie asks…

How to invest in gold and /or precious metals?

Dollars, Euros, buttons all on the line, so whats left for me? Goldfinger .

John answers:

Judy is correct.

Kitco is the leader in Gold & Silver sales (the actual metals). They do a good job……. But!!!!!…… There’s high fees (hidden in the spread) and storage or shipping costs.

Today’s world… SLV is the largest holder of silver in the world. GLD is in the top 10 largest holders of gold in the world. A good on-line broker can sell you a $100,000 worth of either metal for a total commission under $10….. And with no storage or shipping charges. Plus instantaneous transactions.

ETF’s (like SLV & GLD) is the way most traders buy & sell these metals.

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