Is anyone here currently investing in gold? My wife is starting a new job in July that will quadruple her income. We currently don't have any investments but plan to start and gold and silver looks like the only stable thing at the moment. Does anyone have any advise on investing in gold?

How bout any other solid investments? We're not looking for huge returns so much as long term stability.

I strongly suggest reading and joining the KITCO forums for some very good discussions about investing in physical gold, silver and in mining stocks.

IMO, Silver is undervalued and would be a good long term store of value. And silver bullion, either coin or bars, may be far more tradeable because of more convenient values -- such as a 10 oz silver bar being worth $170 to $190 (sell vs buy price) today, whereas a 1oz gold coin is $1050 to $1115 (sell vs. buy price) today.

OTOH, taking delivery of silver bullion, then sending it off to a buyer incurs a substantial shipping fee because of its weight. Gold is much better for shipping back and forth. But to buy some and sit on it for years and then maybe to use some coins to buy stuff -- Silver may be the better bet.

Gold -- I dunno since it is so high now. But given the world economy and war sabers being rattled, investing in gold may be wise for long term store of value.

IMHO, gold will be a great investment if the dollar goes south and all the doomsday reports about the economy become true. Otherwise you're buying while the price is high and will have to wait a good while in order to make a profit. Wait until the economy comes back around, buy gold when it does, wait until the "next" recession and sell it off to all the people who are in fear of the dollar collapsing.....make a killing!

I'm no expert, but it seems to me you'd want to buy low and then sell high. Gold is high these days.

I've been buying stock in banks, mostly as a hunch. Citigroup, for example was trading last December at $14. A couple years ago, it was in the $40 range. I bought a crapload of it last spring for around $1.50 a share. It's trading at close to $4.50 right now. I think it'll go up more as the economy recovers. Even if it reaches half it's price a few years ago I'll be very happy. From what I read, there's money to be made in smaller banks as well, though I've stuck with the larger ones as they got the lion's share of our tax money. I'm a lazy investor, so YMMV.

Might be something to look into. Start up an etrade account, maybe invest in mutual funds since it spreads risk out a bit and they take very little to no management. You probably can't do worse than investing in South America or China, for example. Though a lot depends on when you plan on retiring.

If you have any outstanding debt, pay that down first. You can't beat an "investment" like paying off an 8% car loan or whatever. It's a guaranteed return. If you own a house and plan on staying in it for a long time, you could also look into making 3-6 double payments every year. That will shave off a few years of mortgage obligation, which might make retirement a little easier.

Ok, I'll stir the pot!

Gold and silver are great stores of value. The trick is to buy them right. Right means not paying someone else a fat profit. Buy low, even when spot prices are high. Its not rocket surgery or brain science. The problem is you'll need to educate yourself. If you pay someone else to find the gold or silver, you'll pay market (spot) price, and maybe some. How much money are we talking? Its easy to invest/buy a silver service from some dead guy (estate) for at or below spot price. You can also find jewelers who understand the metals market and know you won't pay spot price. They'll probably sell you a small jar of dirty old rings and chains for the equivalent of 80% of spot.

You can often find US silver coins out and about for less than the 13x premium they're worth. Or even at 13x might be a good buy if you pay cash, no sales tax, and carry it home with you. But all my comments are prefaced on the idea you don't want to "invest" a few hundred thousand at a time.

So now that I've got everyone riled up at me saying gold and silver are good investments, its time to pull the string. As long as you keep them to the general rule of 5% of your total portfolio, its good to go!

I think that precious metals are a risky investment.
Why not look at money market funds/accounts, blue chip bonds, high quality municipal bonds, or T-bonds? I think that they tend to be safer investments for preserving capital.
Personally, I invest in a diversified portfolio of good quality Vanguard index funds.

Strangely enough it seems to me, the 'people' (read TV and radio 'experts') telling everyone to buy or invest in gold, silver, or other precious metals, seem to be the same 'people' who are selling said items.

I'm thinking the time to buy that stuff was a year or 18 months ago.

quote:

Originally posted by widge:
Strangely enough it seems to me, the 'people' (read TV and radio 'experts') telling everyone to buy or invest in gold, silver, or other precious metals, seem to be the same 'people' who are selling said items.

What a coincidence.

Too late to invest in Gold, is more like Gold as a savings insurance from posible inflation not as a investment now.

Buying Gold is more like taking some insurance all your savings will not be lost if the dollar goes south big time and there is hyperinflation.

But is too late to expect big returns from it.

Silver is undervalued.

Like any other commodity, it should make up a small percent (10%) or less of your overall portfolio. You do have an overall financial plan? You have paid off other debts before investing? Make sure your foundation is secure before adding on.

quote:

Originally posted by widge:
Strangely enough it seems to me, the 'people' (read TV and radio 'experts') telling everyone to buy or invest in gold, silver, or other precious metals, seem to be the same 'people' who are selling said items.

I'm thinking the time to buy that stuff was a year or 18 months ago.

. . . which is exactly what those "experts" did a year or 18 months ago.

quote:

Originally posted by don95sml:

quote:

Originally posted by widge:
Strangely enough it seems to me, the 'people' (read TV and radio 'experts') telling everyone to buy or invest in gold, silver, or other precious metals, seem to be the same 'people' who are selling said items.

I'm thinking the time to buy that stuff was a year or 18 months ago.

. . . which is exactly what those "experts" did a year or 18 months ago.

Thank you. You just proved my point.

Before the gold bubble bursts there will be lots of signs. My guess is that we are no where near the peak. It is still a few years off. I've got a bunch of signs that I'll be looking for. While written as humor, the below is something I review every once-in-a-while. Just for a quick review. I'd like to give credit to the author, but I've lost the source.

Top ten signs of when Gold is near the top:

11
The Baltimore Ravens play in GoldCorp Stadium and the Houston
Astros play their games at Pan-American Silver Field.

10
Gold company CEOs become the object of intense media scrutiny
and appear in designer clothing on the cover of magazines like
GQ, Details, Esquire, People, and Vanity Fair.

9
Dozens of new precious metals mutual funds are launched. Funds
become increasingly specialized:
"Large Cap Gold Value Fund",
"Mid Cap Gold Producer Fund",
"Gold Exploration Fund",
"South African Gold Fund", etc.
These funds can be purchased in corporate 401(k) plans. The fund
managers are frequent guests on CNBC.

8
Microsoft announces plans to enter the gold mining business

7
People start bragging at cocktail parties about how they bought
Harmony at $40 (that's pre-split mind you) or Franco-Nevada
before the merger. Your friends, who you couldn't interest in a
non-tech stock a year ago, even if you beat them with a large
stick, start offering you tips on the best gold stocks to own.

6
Newmont buys CNBC.

5
Wall Street sell-side firms hire super-star analysts to tout
their top gold stock picks. These analysts appear frequently on
CNBC. These analysts rate the new IPOs in a range from "probably
should by" to "definitely should buy right now."

4
There is a flood of IPOs of small gold exploration companies,
most of them thinly capitalized, with no geological expertise,
and with no prospect of finding anything. These small gold
companies become known for their lavish parties at which gold
jewelry is handed out as party favors.

3
A slew of new magazines are launched called Gold Herring, The
Gold Standard, Hard Money, and Worth [Its Weight] to cover the
gold mining industry.

2
Smart Money, Worth, Kiplinger's, and other personal finance
magazines start running stories on "The Top 10 Gold Stocks to
Own for the Coming Year." Business Week runs a story called "The
DOW: Will it Ever Come Back?"

1
The gold price and the XAU are quoted hourly on business radio
news segments displacing the NASDAQ

quote:

Originally posted by 41:
It is still a few years off.

quote:

Originally posted by P220forever:

quote:

Originally posted by 41:
It is still a few years off.

Greetings!

OK... I can't hold it in any longer!

P220forever and I have been telling you all for MONTHS to go buy some gold. Always the same chorus back:

"It makes no sense to buy at the peak" (back when Gold was selling for $960).

"Get a financial advisor" (after such creatures have RAPED and PILLAGED you all into poverty).

"Gold is historically a bad investment" (after the ONLY market to turn a profit last year, 14 bloody % if you are wondering, was GOLD).

"Diversify" (after that EXACT strategy sent many of you to the poor house!).


Enough already. Gold is close to $1,060 right NOW, flirting with $1,100 in the next week or so. I personally see it going to over $3,000 by the end of the year... but whatever.

WAKE THE HELL UP!!!! Last chance... get it while you can. The door is closing... and your paper promises will be worth the ink they're printed with VERY, VERY soon.

Best wishes,
Bawko

First make sure you and your wife are taking advantage on any 401K type plans offered by employers and that you are putting in at least the same percent they match. Many companies will match your contribution to more then dollar for dollar which makes that a no brainer investent even if you put the money in a Money Market fund. 401K also reduce your taxable income.

If you don't have a brokerage account then open one. I HIGHLY recommend Vanguard and that is where our investments are at. You can then take advantage of many of the great no load funds of Vanguard, purchase funds from other companies, and also invest in stocks, bonds, Money Market funds, etc. Vanguard does have a precious metals fund that can be invested in though I recommend diversification beyond that.

Be VERY careful investing in what everyone is recommending at a particular point in time as often the contrarian view is right. Those who remember the biotech, tech, oil, and real estate bubbles should be aware of that. Also don't pay attention to the idiots on CNBC, etc. The majority are looking to cause term bumps in the investement they tout so they can sell for a profit at your cost.

Good luck!

http://www.vanguard.com/

ROFL!!! Yeah man, if you want to "invest" in an inflation matching product that resembles the snuggie of the investing world, go for it. Or, if you had put money in the market (or left it alone in the market) you probably would have enjoyed the near 40% rate of return the rest of us are. Gold does not TOUCH the stock market in long term rate of return since inception and historically day traders make about 7% rate of return all said and done. Slow and steady wins the race. The sky is not falling, and any fear based decision with money is a dumb one.

quote:

Originally posted by KWKSLVR:
ROFL!!! Yeah man, if you want to "invest" in an inflation matching product that resembles the snuggie of the investing world, go for it. Or, if you had put money in the market (or left it alone in the market) you probably would have enjoyed the near 40% rate of return the rest of us are. Gold does not TOUCH the stock market in long term rate of return since inception and historically day traders make about 7% rate of return all said and done. Slow and steady wins the race. The sky is not falling, and any fear based decision with money is a dumb one.

Greetings!

Dumb one? Make sure YOU are not the dumb one!

Inflation adjusted stock market vs. gold:





Excluding the Gold chart anomaly at the beginning of the 80's (due to the hunt brothers attempts to corner the silver market, which is GOLD POSITIVE anyway) I see stocks yielding the SAME value from 1960 to the present (with a few brief peaks of almost 200% gain), while the nominal Gold price increases over 1,000%

AND YOU HAVEN'T SEEN ANYTHING YET...

As for the 401K post... I won't even dignify it with much of a response, other than to laugh hysterically at the clowns who think this kind of thing is anything other than a scam of the highest order.

WAKE UP... Gold IS money... your paper currency and paper promises are WORTHLESS!!!!!

Best wishes,
Bawko

P.S. The sky IS falling, regardless of how dearly you want to believe otherwise.

I love gold people comparing stats from the 60's with the stock market since the 30's. Gold has averaged a 4.3% rate of return over the past 70 years with a volatility that is all over the map. The S&P 500 has averaged 10.65% from Jan 1 1960 to Dec 31, 2008. If you adjust for inflation that's 6.38% for the stocks and .03% for gold. That sucks. Having your money in a volatile asset for retirement is retarded.

Let's think about what it means for the "stock market and economy to collapse". That means that Wal-mart, Microsoft, McDonald's, Apple, GE, Ford, Toyota, Walt Disney, Hilton Hotels, Mattel, United Health, Exxon, Dell, IBM, Nike, Starbucks, Wells Fargo, Intel and the likes all CEASE TO EXIST. They shut down, gone, forever, poof, that or they ALL privatize themselves. If someone truly believes that's going to happen, then they are a lost cause. Every year and every administration has some group of doomsayers pandering to fear over facts.

If you are buying an investment off of TV based on facts by the salesman selling it and you think your information is correct, then your nutty, no offense to anyone.

Our economy is not anywhere NEAR as "bad" as it was during the freak'in Carter Administration and you tinfoil hat wearers still refuse to even acknowledge a near 40% Rate of Return these past several months. In March the market was at 6547.05. It wasn't even 1000 with wild inflation during the Carter Administration. It's been hanging around 10,000 this week.

Food for thought:
$1 invested in bonds in 1801 = $13,975 today
$1 invested in stocks in 1801 = $8.8 million today
$1 invested in gold in 1801 = $14 today.

Gold is not a long term investment.