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How can i invest in gold? First timer?

PostPosted: Sat Sep 25, 2010 7:53 am
by Paula
I want to start investing and i was told to do it in gold, How can i go about doing it? It would be my first time and i don't know where to start or how much. Please help!

Re: How can i invest in gold? First timer?

PostPosted: Sat Sep 25, 2010 7:56 am
by Sgt_K
Why do you want to invest in gold??

Re: How can i invest in gold? First timer?

PostPosted: Sat Sep 25, 2010 8:26 am
by alcan52
If you really want to get started in buying gold then you need to learn all you can. Start off by listening to the following radio show at this link. As Im writing this post, the show is on the air. Listen to todays show in a couple of hours when its posted. Todays show has a lot of information packed into 1 hour that most gold buyers never learn in years of investing.

Listen to this show on a daily basis and you will learn all you need to know. As for how much to buy depends on what you want. I personally started off with silver and then moved into gold. I bought 1 coin at a time. It adds up over time.

Email me for more info after you listen to these shows but as I said listen to todays show. Download it and keep it. I will post the link to todays show as soon as its uploaded by the network.

#####Here is todays show#####

Re: How can i invest in gold? First timer?

PostPosted: Sat Sep 25, 2010 8:37 am
by john_r
You can invest in gold a few different ways.

The first way is actual gold coins or bars. You can buy them online or at a gold dealer in your area. I would buy gold coins from the goverment mint you pay less for the gold and the coins hold their value better because they are limited editions.

The next way you can invest in gold is buying gold stocks. This is easy way to buy into gold but the prices move sometimes different than actual gold prices. Gold stocks are gold mining companies and they can go down if mine has any problems.

The easiest way and cheapest way to invest in gold is a etf. A gold etf buys the gold and holds it in a safe. You own the amount that you buy. They shell shares of the gold and the price is the cheapest way to invest in gold. They also are the easiest way to sell gold also.

Re: How can i invest in gold? First timer?

PostPosted: Sat Sep 25, 2010 8:47 am
by ProfessorOddlot
I'll expand on the answer about coins/stocks/funds...

If you want to buy gold stocks or a gold "exchange traded fund" (ETF), then you'll have to open an account at a brokerage firm and deposit money before you can make the purchase. There are several national reputable online firms you can use, such as TD Ameritade, E-Trade, Schwab, Fidelity, Scottrade and Tradeking. To open the account you'll need to complete an application and provide address, social security number, bank information, financial information and prove your identity. To make a deposit you can send (or drop off) a personal check or have your bank "wire" the money. If you make the initial deposit with a personal check you probably won't be able to make the purchas until that check clears, usually several business days.

Using the gold ETF would be the most direct way to have a gold investment using a brokerage account. The price will move nearly perfectly with the actual price of gold. And while owning gold mining stocks can work quite well, there are so many other variables in the performance of a single mining stock that you need to do a lot more homework -- owning a gold mining stock isn't just owning gold, even though the share price will usually move with the price of the metal.

As for buying actual gold, your best vehicle is to buy coins -- the most price efficient are probably the various 1 ounce coins issued by many governments such as the US Eagle, Canadian Maple Leaf or South African Kruggerand. Each of these coins contain one ounce of gold and the price tracks very closely to the market price of gold, but you'll pay a premium above the gold price of about $100 at many dealers. (Gold today is at about $1295 per ounce, so one coin is likely to be almost $1400.) Many dealers will want you to pay cash and will barely ask for any information.

Finally, I urge you to think carefully about this because gold is at an all time high. Almost all investment advisers suggest that a portion of your investment money be in gold, but almost none would suggest that all your money be in gold. You should build a diversified porftolio. So if you start with gold, 1) be aware that it may very well decline from here, and 2) starting a plan to have some investments in stocks, both foreign and domestic, and some investment in more conservative "fixed income" securites (also called "bonds".)

Good luck!

Re: How can i invest in gold? First timer?

PostPosted: Fri Oct 08, 2010 8:33 am
by awanthika
Start buying gold from auctions, they have better deals.