Best way to own gold?

October 11, 2008 | me

[reaganaut1]

My wife wants to own at least $10,000 of gold. She has never trusted stocks much, and recent events have made her more concerned. I have told her about the Gold ETF (symbol: GLD) and about gold futures contracts, but she does not want "paper". So I suppose we could buy gold coins or gold bullion and store it in a bank safe deposit box or a safe at home. How do the Freepers who invest in gold do it? How do you sell when the time comes?

We are of Indian origin. Indians (especially women) cherish gold. As India gets richer, and as central banks focus on saving banks rather than protecting purchasing power, gold may be a decent long term investment.

[nmh]

IT would be ridiculous to buy gold now.

It is PEAKING and over priced.

[Mountain Troll]

Jewelry, perhaps? Gold coins are only valuable to other gold hoarders, but you can always get something for a ring or a necklace.

[Peter Horry]

Buy a $3500 dredge, $1200 metal detector, a $1600 tactical shotgun and spend the rest on provisions.

[mlocher]

One of the dead giveaways that owning gold is foolish and worthless is that it is ADVERTISED as being such a smart thing to do.

There is some truth to this. However, remember that these ads are targeted to seniors who may be full of fear because they remember the depression, or had parents who told them stories. Many of these places sell gold at a significant premium and then want to hold the gold for you -- while you pay the storage cost.

Personally, if you want gold as a security blanket in case of total meltdown, buy coins.

[T O]

You can buy gold coins from “California Numismatic Investments” http://www.golddealer.com I have purchased coins form them over the past 7 years. Right now their is a shortage of gold coins.

[Neoliberalnot]

I am in Vanguard’s Precious Metals and Mining mutual fund and have possession of silver coins.

[kbennkc]

I agree with the Freeper who said gold is a doomsday asset . I own a few gold U.S. Coins . I will almost certainly never sell them . I just like them . If I had another 10,000 to invest right now , I am so dumb I would add to my stocks which have lost 35% in the last year instead of 10 gold coins .

[Emmett McCarthy]

I suppose I should clarify that I don’t buy anything that is advertised on talk radio. I may listen and agree with the content, but I’ve learned to avoid the advertisers there. Probably that $250 “Hooked on Phonics” buy was the beginning. The hosts, of course, can’t very well screen the advertisers and one has to understand the difference between when the host is speaking as the host and when he’s speaking as a “paid endorser” of a product or service.

[null and void]

Buy gold from the US Mint.. Check www.usmint.gov

Great idea. When they outlaw private ownership of gold again, your name and address will already be on file.

Convenient.

[Jewels1091]

I don’t think gold is a good buy right now because of the price, but if she will feel safer your bank can answer your question about actually having the tangible.

[ikka]

http://goldprice.org/gold-price.html and follow the links after seeing what the current price is.

[Boiling Pots]

Diamonds are great, until DeBeer’s collapses.

[kbennkc]

The Russina Nicholas Czar family was NOT loaded down with gold when they were shot to death.

I put all my diamonds on Easter eggs and can't remember where I hid them .

[illiac]

This is in no way an endorsement of Ebay.

However, I bought about 40 ounces on Ebay when it was only in the $425 per ounce area, and sold when it hit $850.

Given the current price of gold, many of the lowest prices on Ebay right now are at about $36 per gram, however, the current price per gram is more realistically in the $24 range.

Watch Ebay....sometimes some gold gets listed at a price well under the #36/gram that most advertise.

If you find it, buy it.

Please, before you buy, make sure the seller has a 95% or above user rating on Ebay and always deal with a seller who uses PayPal guarantees.

[cherry]

if you are going to have gold or silver as a hedge against the coming bad times, should it be somewhere that you can retrieve it quickly?..if its in your box at the bank, it may not be available if they shut their doors

[Condor51]

"How do the Freepers who invest in gold do it?"

Want to buy a Gold Mine?

"How do you sell when the time comes?"

Like I said, want to buy a Gold Mine?
'SERIES', I hope you get my point - DON'T BUY Gold Mine stocks.

As to Gold in general I hear conflicting info from the "experts" on FoxNews. So I'd do a lot, I mean A LOT, of research first.

(it was for fun and I used 'throw away money' so if it went bust, like it did, no big deal. Of course I could use that money today for more guns and ammo - oh well.)

[RckyRaCoCo]

heh,

"but wait there's more, order right now and you get this free can opener, a $3000 value....."

[DRey]

You can also buy stock in companies that invest in gold. I know it's still stock, but the value is directly proportional to the value of gold and unaffected negatively by the current swings in the market, with actual gold bars at the core -- and you don't have to store it. USGI (US Global Investors in San Antonio, TX) is one such company. I used to work for this company, but there are others. The CEO of USGI is a Canadian a-hole and probably belongs behind bars. I don't recommend buying that particular stock for that reason alone -- not because it won't make you a ton of money, but gold funds are a LOT easier to deal with than actual gold. Midas is one fund you might look into: http://www.midasfunds.com/gold-mutual-funds.html

One other thing. While I was recommending buying gold 6 months ago, 3 months ago, 3 weeks ago, if you want to make some money with your money, now is the time to be investing in the STOCK MARKET -- these numbers aren't arbitrary. There is real value beneath these falling stocks, and once the hysteria has passed, it will recover. That's where you want to be with your money is in the upswing. You're moving with the herd to gold at this point. Never a good idea to move with the herd when it comes to investing.

[nmh]

I put all my diamonds on Easter eggs and can't remember where I hid them .

Need help looking for them?

Seriously, when Vietnamese fled, their wealth was DIAMONDS not gold. Diamonds ALWAYS keep their value. Light weight, easily concealed - they are your best bet along with precious gems - NOT GOLD!

[nmh]

Diamonds are great, until DeBeer’s collapses.

That won’t happen anytime soon - they RESTRICT the supply to keep the VALUE UP. Even if it would “collapse” the demand will INCREASE because of a lack of supply.