Buy Gold ?

[Yoga Face]

Just watched the empire club on TV (empireclub.org)

strongly recommend Gold but not gold derivatives

because it is traded as a currency not a commodity

hedge against the coming inflation and has a recent thirty year history of beating the market by a lot

recent 20 year equity boom is over (they go in 20 year cycles)

50% of your portfolio is not out of line

most portfolios have none

What is the best Way to buy gold ?

 

[blackrock13]

Just watched the empire club on TV (empireclub.org)

strongly recommend Gold but not gold derivatives

because it is traded as a currency not a commodity

hedge against the coming inflation and has a recent thirty year history of beating the market by a lot

recent 20 year equity boom is over (they go in 20 year cycles)

50% of your portfolio is not out of line

most portfolios have none

What is the best Way to buy gold ?

I have an liking for bullion or large denomination gold coin; less premiums paid for it and it feels so good when you touch it. Paper just doesn't do it for me. Coins and bullion can fit in your pocket in pinch and is accepted everywhere. Buy it a lot of places, just keep an eye on their % for handling it. Banks do ok.

If you like stocks for convenience, buy a basket of stocks and that spreads your risk, remember risk?

That's my 2 Krugers.

 

[Yoga Face]

If you like stocks for convenience, buy a basket of stocks and that spreads your risk, remember risk?

That's my 2 Krugers.

If you buy gold coins now you have to rent a safety deposit box


Stocks in gold ?

You mean companies that explore for gold ?

 

[jerk chicken]

gold okay for long term (50 years+), but it is a risky in short term just like any other investments. It has been very volatile historically, it reached $1000 in 1980s and now it has just started to recover to that level. who knows it could drop back to $500 and stay there for 2 -5 years no one would be surprised.
definately not a get rick quick thing.
a safer way hedging against inflation would be buying TIPS (http://www.investopedia.com/terms/t/tips.asp) backed by US government matching returns based on inflation

 

[daboy]

when everyone and their brother (and their sp) talks about buying gold then
that is the time NOT to buy gold.
Gold is emotion only.
Buy options on Gas 1 yr out. Never been this low.
Buy low sell high
db

 

[blackrock13]

If you buy gold coins now you have to rent a safety deposit box


Stocks in gold ?

You mean companies that explore for gold ?

A fire proof mini safe in the basement is more convenient, but a $40 bank box works. It depend how many time you want to touch it or need it.

Company stocks or currency both are available but that get out of my sphere really quickly.

The feel of a $1000 gold wafer bar is really nice under your Dr Scholls. Just don't forget you r shoes at some hussies condo, although she may thank you later.

 

[jerk chicken]

when everyone and their brother (and their sp) talks about buying gold then
that is the time NOT to buy gold.
Gold is emotion only.
Buy options on Gas 1 yr out. Never been this low.
Buy low sell high
db

you talking about NATURAL gas right? last i heard it is quite expensive from an MPA. she said a guy asked her to produce some NATURAL gas in his face for $100!!

 

[blackrock13]

when everyone and their brother (and their sp) talks about buying gold then
that is the time NOT to buy gold.
Gold is emotion only.
Buy options on Gas 1 yr out. Never been this low.
Buy low sell high
db

All good points. When every one IS talking it's not a great time, kind a wise for anti pump and dump strategies.

If you talking long term, coins are good as the rarity factor kicks in. The coins get to be worth more than their face and initial value as time passes and can always be sold to someone. But you or someone you trust has to know your stuff. I'm not good enough to even sniff around the futures or derivative markets so I don't clutter up my head space thinking about it.

Buy low sell high is great advise, but really difficult to be good at it. When is low low enough and same with high. Talk to someone who know way more than you do, pick your price points of pain and comfort, be patient, then ladder your purchases just like your bonds.

Gold can be emotional but I've never known it to tank except maybe after a really long run.

For a sense of proportion read up on the tulip market in the mid 1600's, you'll laugh but then be a little more educated I promise. Then follow that up with a read on the buying and selling of swampland in Louisiana, yes sirrie, in France's bond market of the early 1700's. Your time will not be wasted and you'll be a little wiser.


I think 50% of you holdings is too much, but just my opinion.

 

[oil&gas]

If you buy gold coins now you have to rent a safety deposit box


Stocks in gold ?

You mean companies that explore for gold ?

If you are a newbie to stock trading stay away
from stocks of gold miners/explorers. Buy
instead physical bullions. The overheads incurred
by buying gold and silver coins/bars are however
not worth it for average investors. You can consider one or more of these bullion funds
trading in TSX

Central fund of Canda (CEF.A)

Central Gold Trust (GTU.UN)

Claymore bullion fund (CGL.UN)

With CEF.A shareholders are technically
owners of the gold/sillver bullions hold
by the fund. I am not sure about the details
of the ownership rules applied to the other
two funds but I own all three of them.

If the volatility of the stocks market is too
much for you then consider buying into mutual
funds holding bullion instead. The price will track
exactly the price of gold and not be influeced
by market sentiments. BMO and Sprott Asset
management offer such funds to investors. The
one of BMO may own platinum as well but I don't
know for sure.

Unless you have a crystal ball I recommend against
an allocation of more than 20% of your assets to gold.
The rationale being that gold is more of an insurance than
an investment. You don't want to see the price of gold
explode even if you own it. The best I hope for is
that my gold investment will survive the next market
crash. I suggest you to take a look at the chart of
Central gold trust during the crash last year. Gold
price could pull back in the short term at the onset
of a deflationary recession/depression but it should
hold up better than other commodities. Also remember
that until inflation kicks in cash is king. I usually recommend
an allocation of a good portion of assets to
a mix of Canadian
Real Return bonds for inflation protection and good
quality government and corporate bonds that should
do well in deflation.

Disregard some gold bugs' prediction of gold's explosion
to $10,000 as well as people who suggest it could drop
to $500. The fundamentals underlying gold is very good
in view of the ongoing global debasement of major
currencies. Also don't buy into the BS that everyone
in the market is talking about gold. Majority of stock
investors are ignorant
of gold's value as a monetary metal. Looking to the
coming five years I place the price of gold in the range
of 10 to 20 barrels of oil. You will do well if you stay the course.

 

[danmand]

Bullion Management Group http://www.bmsinc.ca/

 

[blackrock13]

If you are a newbie to stock trading stay away
from stocks of gold miners/explorers. Buy
instead physical bullions. The overheads incurred
by buying gold and silver coins/bars are however
not worth it for average investors. You can consider one or more of these bullion funds
trading in TSX

Central fund of Canda (CEF.A)

Central Gold Trust (GTU.UN)

Claymore bullion fund (CGL.UN)

With CEF.A shareholders are technically
owners of the gold/sillver bullions hold
by the fund. I am not sure about the details
of the ownership rules applied to the other
two funds but I own all three of them.

If the volatility of the stocks market is too
much for you then consider buying into mutual
funds holding bullion instead. The price will track
exactly the price of gold and not be influeced
by market sentiments. BMO and Sprott Asset
management offer such funds to investors. The
one of BMO may own platinum as well but I don't
know for sure.

Unless you have a crystal ball I recommend against
an allocation of more than 20% of your assets to gold.
The rationale being that gold is more of an insurance than
an investment. You don't want to see the price of gold
explode even if you own it. The best I hope for is
that my gold investment will survive the next market
crash. I suggest you to take a look at the chart of
Central gold trust during the crash last year. Gold
price could pull back in the short term at the onset
of a deflationary recession/depression but it should
hold up better than other commodities. Also remember
that until inflation kicks in cash is king. I usually recommend
an allocation of a good portion of assets to
a mix of Canadian
Real Return bonds for inflation protection and good
quality government and corporate bonds that should
do well in deflation.

Disregard some gold bugs' prediction of gold's explosion
to $10,000 as well as people who suggest it could drop
to $500. The fundamentals underlying gold is very good
in view of the ongoing global debasement of major
currencies. Also don't buy into the BS that everyone
in the market is talking about gold. Majority of stock
investors are ignorant
of gold's value as a monetary metal. Looking to the
coming five years I place the price of gold in the range
of 10 to 20 barrels of oil. You will do well if you stay the course.

All good points and well said. I also subscribe to your line of thinking, but that smell and feel of 4 or 5 G's of gold in your sock drawer is a real rush when those real bad days hit. I'm not much of a survivalist, but it wouldn't hurt to keep that in mind as well.

Good luck.