What is the best way to invest in gold?

[genchan]

I've never been one to invest in gold, but after seeing the government promise billions upon billion to banks that we don't have (and thus are printing) I have become convinced that 2009 is going to see quite a bit of inflation and therefore would like to invest some in gold. I just have no idea what is the best way to do it. Would like to hear everyone's opinions of the positives and negatives of the following forms

1. gold bullion
2. gold coins
3. gold exchange-traded funds
4. gold stocks
5. gold mutual funds

[mrpaseo]

I guess that would depend on your interests. Some that invest in gold like to have hard assets in hand, others like the diversification of a ETF or stock fund.

Are you interested in hard assets (Gold in your house) or just tapping into the gold market?

If you are interested in coins I highly suggest GOLD SILVER EAGLES US WORLDWIDE BULLION DEALER AMERICAN COINS BARS

I know that the Gold American Eagle sell very well when the time comes, also the Gold American Buffalo and Canadian Maple Leaf are also sold easy as they are both 24k (.99999). Bars are nice to have but can get expensive and are not as easily moved when you want to sell as they need to be authenticated. The gold coins are well known by the masses and you could even purchase them in a Professional Coin Grading Service (PCGS) authenticating slab so they will sell extremely easy sight unseen (EBay or other auction site).

As for the ETF, stocks and MF. You would make your decisions that you usually make when investing in a ETF, stock or mutual fund. The only difference is where they put their money (In this case, mines, gold/platinum assets etc.)

I am interested in seeing other opinions,
Ray

[Broken Arrow]

I'm not into commodities, but I if I was, I'd most likely invest in ETFs. They're pretty easy to buy and sell.

Actually, I've also been keeping my eye on companies that are involved in mining and creating basic materials (such as Joy Global and US Steel), but haven't made any moves in that sector yet.

For right now, I only track them.

[bankbars]

I've never been one to invest in gold, but after seeing the government promise billions upon billion to banks that we don't have (and thus are printing) I have become convinced that 2009 is going to see quite a bit of inflation and therefore would like to invest some in gold. I just have no idea what is the best way to do it. Would like to hear everyone's opinions of the positives and negatives of the following forms

1. gold bullion
2. gold coins
3. gold exchange-traded funds
4. gold stocks
5. gold mutual funds

Hi there,

There are many reasons to invest in gold.one of the main reason for investing in gold like in Gold stock will rise during inflation or deflation.Investing in gold is a good protection against inflation. You can find many ways to invest in Gold. some of them i would like to discuss .
1)Gold Mutual Funds: The people who hesitate to invest in physical gold but desire to exposure to the precious metal, gold mutual funds provide a helpful alternative. the stocks of companies like Newmont Mining that mine for gold. Newmont is an example of a senior gold stock. A senior is a large, well-capitalized company that has been around several years and has a profitable track record. There are many more ways to invest. To know more please reply back.

Regards.
Bankbars

[Christophercarl]

Gold stocks have been taking off, but I think that the ETFs are probably the safest bet and also one of the easier methods of getting into gold. I too have never invested in commodities, but from what I understand, this seems the best route.

Let us know what you decide

[mrpaseo]

A few years back I purchased 4oz of Platinum from the mint at 1350. Shortly afterwards I sold two oz for 2050 each.

I still have 2oz and as you may know platinum is way below what I purchased at, however, since I sold two at the peak (Still do not know how I managed to hit the top) I am still in the green with the dollar cost averaging.

I have some gold and Silver as well, no real need to sell it so I'll just sit on it.. or rather let the Bank sit on it (All hard assets art kept in the safety deposit box for...safe keeping )

[mrpaseo]

Stock to look at:

Silver Wheaton Corporation SLW

[Investing First Steps]

There are pros and cons of all those methods, but one thing that is often overlooked as a benefit of owning physical gold: You eliminate counter-party risk. That is a bigger concern now than any time that I've been alive, so it's not a terrible idea. Of course you incur some new risks as well.

[mrpaseo]

There are pros and cons of all those methods, but one thing that is often overlooked as a benefit of owning physical gold: You eliminate counter-party risk. That is a bigger concern now than any time that I've been alive, so it's not a terrible idea. Of course you incur some new risks as well.

I agree, there are a few issues with holding hard assets:

1. Counterfeit: There are a few ways they do this, the most obvious is making fake bullion. This has happened to the point that the experts were fooled.

2. PLUGS: Some people have mastered the art of drilling a plug from a gold coin/bar and filling it in with tunsing (sp?). Basically it looks and weights the same or close enough to not be detected.

3. Storage: A bar or two is easy to store, you can hide it just about anywhere or easily put it in a safety deposit box. The problem arises when you decide to purchase large amounts of bullion (Silver can add up quickly). There are a few solutions for this.

4. Selling: It's not always easy to sell bullion sight unseen (i.e. eBay or some other on line) and when you walk into a shop and try to sell they want to give you the lowest possible amount to maximize their profits. This is why I recommended coins, they can be authenticated for a fee or purchased already graded/authenticated. Once they are in the plastic slab they are easily sold and stored (Containers of 20).

All that said, I still own Silver, Gold and Platinum. Once you understand how to obtain it, store it and sell it, you will have little issues owning it.

Ray

[MoneyTrev]

Stocks if you like to buy and sell and don't have to worry about carrying the gold around or the physical gold bar when you don't want to do anything online and want to just hold it wherever you want to sell it.

[Investing First Steps]

If you just want an easy way to "invest" in gold, gold ETFs may be what you're looking for, such as:

IAU and GLD both listed on NYSE.

[amarowsky]

If you just want an easy way to "invest" in gold, gold ETFs may be what you're looking for, such as:

IAU and GLD both listed on NYSE.

That GLD etf does look pretty promising. Over the past few years it has nearly doubled. Although for the past six months is has kinda floundered around the same general prices.