Anyone Buying / Investing In Gold?

[SilvrSRT10]

My wife says she wants to put some money into gold. I know nothing about this but know we have some pretty savvy people here that may be able to answer some questions or offer some guidance. Where do you buy? How much is a good investment? Are there any drawbacks? TIA

 

[linemup]

Very good questions I would also like to know.

 

[LoveThisTruck]

Can't really go wrong with it. I think everybody will agree that the price of precious metals can only go up. I collect coins myself... silver though, I'm too poor for gold

 

[Dom426]

talk to burntrubber he invests in gold

 

[Wifey]

Here are some various things to read - hope they help

http://seekingalpha.com/article/112...old-and-silver-investment-strategies-for-2009


http://www.monex.com/why/howtobuy.html

http://www.investmentu.com/IUEL/2003/20031111.html

http://www.usagold.com/cpm/goldhelp.html

:marchmellow: :marchmellow: :marchmellow:

 

[THEWELSHM]

My wife says she wants to put some money into gold. I know nothing about this but know we have some pretty savvy people here that may be able to answer some questions or offer some guidance. Where do you buy? How much is a good investment? Are there any drawbacks? TIA

Good question the everyone is asking these days, truth is Gold basically stays with inflation and has typically yielded 4% average over the years. Put your money in an IRA ( all the market ups none of the drops) if you need to stay liquid then a high performance money market may be better for you????

If you make over $100k a Roth IRA wont work!!! but a simple one will.

ps dont ask a comission based salesman, ask a broker!!!!

thewelshm

 

[Wifey]

Good question the everyone is asking these days, truth is Gold basically stays with inflation and has typically yielded 4% average over the years. Put your money in an IRA ( all the market ups none of the drops) if you need to stay liquid then a high performance money market may be better for you????

If you make over $100k a Roth IRA wont work!!! but a simple one will.

ps dont ask a comission based salesman, ask a broker!!!!

thewelshm

Good advice and thanks for the Dave Ramsey link - very sound stuff in there. Most of those steps had been taken, then the unexpected happended and pretty much wiped out the savings

 

[Django]

Good question the everyone is asking these days, truth is Gold basically stays with inflation and has typically yielded 4% average over the years.

thewelshm

Those numbers may only be accurate if you are ammortizing them over a period of the last 100 years..... I'm not sure how you arrived at that number, Paul...

The fact is that in March of 2005 gold was at around $430 an oz...

In 2008 gold peaked at $1005 an oz..... Currently it stands at about $870.

That means that if you'd bought gold about 4 years ago you'd have just about doubled your money....

If I had the money, I'd buy gold today...... It's down about $130.... But everything's a crapshoot when it comes to the economy.

Timing is everything.........

D

 

[BurntRubber]

talk to burntrubber he invests in gold

use this thread or pm me with any questions on gold pr precious metals investments.
I bought most of mine about 5-6 years ago and have been selling...made money and it was a good trade for me.
if you want it to protect a "portfolio" i would recommend 10-15% in gold and silver. buy bullion, 1 or 10oz bars are cheapest way to go...american eagels are going to cost a little more because of the minting cost associated with it.

actually 2/3 of my viper was paid for from my gold profits

 

[seth]

I would be very careful with buying gold right now. The run-up is most likely over. Now comes the run-down. To put it in real dollars the all time peak of the early 1980's equal over 2000k and oz in today dollars. In other words if you bought gold at its peak in 1980 then you would have lost money even selling at the 2007 peak.

 

[BurntRubber]

I would be very careful with buying gold right now. The run-up is most likely over. Now comes the run-down. To put it in real dollars the all time peak of the early 1980's equal over 2000k and oz in today dollars. In other words if you bought gold at its peak in 1980 then you would have lost money even selling at the 2007 peak.

it all depends on what its being used for. if it for a quick trade i dont see much profit. but it will always be used as protection for a portfolio.
what happened in 1980 isnt my concern...i was only 3 yrs old!

 

[BurntRubber]

remember you have to look at gold, silver...precious metals in context with the surrounding economic conditions. its not a company that can go bankrupt, or pay a big dividend. its not a muni bond you buy for income...you buy it to protect a portfolio or hedge against inflation, or protect from currency debasement.

you can go anywhere in the world and exchange it for currency...that is why wealthy people buy it!

 

[500snakz]

Yes buying gold is a good idea. Just NOT now. The price is up and there is some selling going on now. With metals, it"s like everything else, BUY LOW, AND SELL HIGH. The price is too high for me to buy now.
I would buy a few stocks right now. The prices are extremely low and some are as much as 50% devalued. Now is the time to buy. Just be careful and do your homework.

 

[SilvrSRT10]

it all depends on what its being used for. if it for a quick trade i dont see much profit. but it will always be used as protection for a portfolio.

She wants to turn cash into precious metal as protection. As I've told Tim in a PM, I don't get it. If I've got $5-$10K sitting around in gold and the economy takes a total dump, then I've got a worthless hunk of gold because nobody will be able to afford to buy it and they don't accept it at the grocery store.

Somebody paint me a picture as to why owning gold is a smart thing to do and how it can be used as protection in times of crisis. Now as an investment I understand. Buy low, sell high.

 

[Black1]

She wants to turn cash into precious metal as protection. As I've told Tim in a PM, I don't get it. If I've got $5-$10K sitting around in gold and the economy takes a total dump, then I've got a worthless hunk of gold because nobody will be able to afford to buy it and they don't accept it at the grocery store.

Somebody paint me a picture as to why owning gold is a smart thing to do and how it can be used as protection in times of crisis. Now as an investment I understand. Buy low, sell high.

When the economy "tanks" is the precise time people start pouring money into gold......

 

[seth]

Whatever you do, do not buy diamonds. It is a completely inverted yield curve.

 

[SilvrSRT10]

Whatever you do, do not buy diamonds. It is a completely inverted yield curve.

No....no diamonds. My wife would want to wear them all. Gold or silver, maybe both if I can figure out the benefit to owning them. Doing the research and asking questions. Thanks for the info so far.

 

[BurntRubber]

She wants to turn cash into precious metal as protection. As I've told Tim in a PM, I don't get it. If I've got $5-$10K sitting around in gold and the economy takes a total dump, then I've got a worthless hunk of gold because nobody will be able to afford to buy it and they don't accept it at the grocery store.

Somebody paint me a picture as to why owning gold is a smart thing to do and how it can be used as protection in times of crisis. Now as an investment I understand. Buy low, sell high.

I keep mine in a safe...when i want to sell i call the place i bought it from and i have my money in about 2 weeks.
Gold will always have value to it. i dont listen to what the price is or people say buy high or buy low, or its over valued...thats why gold or silver are different, what is over valued...its not a company (stock) or a bond...
once the euro starts to fall apart over the next few years, the dollar will stay weak and gold will form a new base in the $500-600 / ounce range. your down side is much more limited in my opinion than in the stock market.
I am buy some stock for my girls college fund now (LNT, INTC, BK, PFE) and a few others. last year i picked up NL for them at 9.50 a share...thats an investment, they have 15 years before i need to use it. but anyone of them can go under and be worth crap. there is a lot of risk in stock still and the bear market rally is leading people on to feel more confident.
so it depends on your overall investments and what you are looking to accomplish with a gold investment. if you are going to hold and accumulate them start buying some, if you want to make money over the next 2 years i dont see much profit.

 

[Demon 8]

Turning into a great thread. Burnt, Would you trust a Morgan Stanley rep to do your investing for you? I have been siting on some money and not sure how to start. I know a broker but not well enough to "trust". How much do they make off my money and if I have no knowledge in the area is that my only real choice. My initial investment would be about 15-25K. I think we have been here before but I dont believe I asked the question this way.

 

[BurntRubber]

Turning into a great thread. Burnt, Would you trust a Morgan Stanley rep to do your investing for you? I have been siting on some money and not sure how to start. I know a broker but not well enough to "trust". How much do they make off my money and if I have no knowledge in the area is that my only real choice. My initial investment would be about 15-25K. I think we have been here before but I dont believe I asked the question this way.

depends on what you are investing in.
stocks & bonds they prolly charge a fee say $50 a trade, unless its a block(which it wont be, thats alot of shares )
mutual funds, A share - expect to pay 4-5% upfront and its long term investment only (IRA, Roth, College, 10+ years)
b shares - good for meduim hold nothing up front to you, back end load, broker will make 3-4%
c shares are short term, nothing up front, one year surrender, highest internal fees
annuities - good for tax-deferral, and income or death benefit riders. broker may make some where between 4-6%...this is for retirement only.
there are non public reits, closed end funds, and preferred stock.

if someone were coming to me and said i have a long term horizon, and they had an emergency fund set up heres what i would do with $20k.
Get a Roth IRA started and do an automatic investment into it. so for you and your wife that would be say $500 a month ($250 each)...you could go with $1000 each up front that way if the market doent trun back down you are getting close to the bottom.
investment wise...look for a good value fund (alliance bernstein value fund), i like healthcare long term, its been beaten up and you dont have as much risk. i have always like utility stock, and do a dividend reinvestment plan.
take money and open a Roth IRA for your wife at scott trade or e-trade, fund money as on 08 funding and then start with 09, buy 2 or 3 stock and do a dividend reinvest plan (DRIP). take yours and open it at morgan stanley, scott trade, or me...and buy some mutual funds and use an automatice investment plan, you are not going to rick all you money up front, if the market goes dwon that good for you long term and it will all come out tax free. then keep some moeny on the sideline and wait for a good investment opportunity...ie...GE when it hits $10 a share, something really juicy!
call me with any questions
623-271-0617