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What is the right way to own Gold? I've never owned it as part of my retirement portfolio. But I'd like some ideas how to buy Gold. Do I buy shares. I don't want to actually owned gold bar... Just want to own a small piece in $1K range to start with....any idea?....
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I buy gold bullion in the form of coins and bars and have held hold for the past 8 years. It's a form of wealth preservation for me and also for other people across the globe particularly in Asia but they but it in the form of jewelry, I'm in Thailand right now and just bought my girl 1oz, 2 half ounce bracelets that came out to $1300/oz. When I buy bullion in the states I can usually buy it for under the spot priceretired in 2009 at the age of 39 with less than 300K total net worth -
I'd suggest physical precious metals instead of paper. I'd lean more towards silver if you are a new investor.Gunga galunga...gunga -- gunga galunga.Comment
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Coins can be bullion, but some are not. There are also rounds and bars. I second starting with silver. I just bought a 10 oz bar for my daughter as a birthday gift instead of buying crap that will get broken or forgot about. I will also buy her silver instead of candy for Christmas and Easter. She isn't a big candy eater and doesn't miss it. It is easy to buy, easy to sell, and much cheaper than gold. Get your feet wet before you are in over your head.
I prefer bullion instead of paper. I'm not too educated about paper gold, but the gold ETF I invested in was extremely volatile. I'm not sure what other paper stocks other then ETF's exist for gold, except mining stocks. You would really have to do your due diligence to pick a good mining stock.Comment
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In Asia gold is used for wealth preservation and status, when we go to the market in my GF's village people take note of the gold she wears, gold and silver has been used for wealth preservation since biblical days. Silver is great and I own a lot of it too but with my recent travels to Asia the past few years SILVER doesn't hold the same reguard as gold, no SILVERstores anywhere but gold stores everywhere with lines of people buying. when I first met my girl I sent her SILVER coins because she is a collector like me and that's how we met, she was unable to sell SILVER and when she found 1 buyer she was offered 1/2 of spot, in the States SILVER is very liquid with no problems selling for just below spotretired in 2009 at the age of 39 with less than 300K total net worthComment
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This makes me think of some neighbors who immigrated here about twenty years ago. I know that the wife has gold jewelry put away that she never wears. When their daughters were born, they pierced the girls' ears and put in dangley gold earrings--for babies! The girls wore those daily until they were about ten years old until they complained of the discomfort of getting them caught in their hair. Soon, the girls refused to wear them. But they had been taught to know that their earrings were "real" and valuable.
The girls would often ask me of my jewelry, "Is it real?" And I told them honestly "no," knowing that what "real" meant to them was valuable. They seemed disappointed. Sometimes I was wearing 925 silver and would tell them that it was "real silver," but that did not mean anything to them. From their family experience, they didn't know what silver was.
One day the oldest daughter was given a tight-ish gold bangle bracelet that she was to wear day and night. She wore it for about three months until it was just bent crazily, and then I never saw the bracelet again, nor was it replaced by another. The bracelet was a higher gold content than was reasonable to expect a little kid to keep unbent. Her far more active little sister was never given such a bracelet. Their cultural ideas about decorating girls with gold jewelry was getting amended by their lifestyle here in the US.
Shortly after the bracelet failure, both girls were trying a new round of gold earrings. The earrings were awfully grown-up from my point of view, and again delicate, flat filigree, almost like a foil. The earrings were supposed to stay in day and night. Again the jewelry lasted only a couple months.
Now neither child wears gold-- or any jewelry. But I'm pretty sure it is put away in a lock box at home. One of the girls wanted to write about the box of jewelry for a school assignment. I'm sure you can guess her Mom told her not to do that.
This family does not do silver either. I'm guessing they have lost money investing in gold jewelry for the kids."There is some ontological doubt as to whether it may even be possible in principle to nail down these things in the universe we're given to study." --text msg from my kid
"It is easier to build strong children than to repair broken men." --Frederick DouglassComment
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If that immigrant family bought the gold 15-20 years ago they have done very well with it, no loss for sureretired in 2009 at the age of 39 with less than 300K total net worthComment
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Gold and silver are very volatile, more so since the USA changed it's currency valuation away from the gold standard. It's another mining commodity with an overlay of fear. There are so many hot spots just now, if you live in Europe, which currency do you trust? American debt combined with Trump's numbers is making us all jittery. The guy in N Korea is unsettling SEA.
It makes sense to hold a small amount of gold in your preferred form as a part of an over all investment portfolio. I'd suggest ETF for low cost and spread out risk, long term holdings with a bumpy ride.Comment
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I don't really see the value of owning physical precious metals.
If the world ends and we are living in a "Mad Max" like scenario, then all that a gold bar would be good for would be to use it to beat someone over the head with so you can steal their food.
You could look into mining stocks/etf's, but most are underperforming as of late.BrianComment
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[quotGunga galunga...gunga -- gunga galunga.Comment
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Although all of the precious metals have at least some practical uses – from jewelry to industrial applications – gold stands out from the others because its demand is primarily driven by investment and as a store of value. Gold is not like any other commodity, therefore. Gold has no significant remaining uses as a producer good because equivalent or superior alternatives exist for all of its industrial uses.
Gold is a “fiat commodity” – one that has value as an asset if and to the extent that enough people believe that it has value. Like paper, currency gold is “irredeemable”. It is an “outside” asset – an asset of the holder that is not a liability of anyone else. As a fiat commodity currency, gold’s value will be largely determined by its attractiveness relative to other fiat currencies – the fiat paper currencies issued by central banks.
In this way, gold should not be analysed in the same way as just another intrinsically valuable commodity (silver, iron, lead, zinc, platinum, aluminium, titanium, etc.), but as part of a set of fiat currencies – the US dollar, the Euro, etc. Gold will be most attractive when market participants are most nervous about the future value of other fiat currencies. And concern among investors tends to grow when governments appear to be spending too much (ie, increasing the size of their budget deficit) and/or when central banks do not do enough to contain rising prices. Inflation, of course, acts to erode the purchasing value of currency.Comment
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Gold and diamonds are so rare that you can walk into any pawn/jewelry store and buy it all day...every day.Comment
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retired in 2009 at the age of 39 with less than 300K total net worthComment
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