CashLoopholes - View Single Post

Paper_Chaser · 09-30-2008, 07:02 PM

Well with the turbulent times of the economy, stock market etc, the only thing that is still pretty safe, and a wise future investment in my opinion is Gold. So i thought id post some tips.

Decide the reasons for buying gold. Are you going to buy gold for an investment or is it for enjoyment? I.E jewelry or collectable item such as coins.

Jewelry is the most readily available form of buyable gold, but has the least liquidity. The resell sale value of gold jewelry will usually never be the same as you paid for it, and your adding the risk to the fold because you aint guarenteed that someone will like it etc. When buying gold jewelry bare in mind that you probably wont make money if you sell it on.

Collectable gold coins are good because their content and gold quality are guaranteed. It will be easier to sell the coins as there is a specific market for them, and due to rareity or need to be added to a collection, it could become a hot cake.

If you are buying gold as an investment that should be liquid, will you easily be able to promise the quality and content of the gold? We have taken a look at jewelry, lets now look at what it is like to purchase gold stock, gold bars and gold bullion.

Gold stocks
Gold stocks are stocks in a gold mining company, so when you buy these, you are not actually buying the gold but investing in the company in itself. There are risks involved of course. No mining company can predict the exact amount of gold in the mine they are currently working, so if they all of a sudden run out, you are going to loose out.

Some people say the Doubling Stocks is a scam, well im not so sure, and I have a very interesting pick that I will post in it later, for you to judge yourselves.

Gold bars
Unless there is a high demand for gold from jewelers in your area, who want to make jewelry, it will be hard to sell gold bars. The reason for this is that the gold in gold bars doesn't bear a governmental guarantee of quality and quantity, while gold bullion does. Also it is expensive to pay for expert anaylasis to proove that the bar is solid gold, unless the person is a mug, if that is the case, ive got 10 bars for sale.

Gold Bullion
Gold Bullion is the most guaranteed and most liquid form of gold. If you are thinking of buying gold to immediately sell, then this could be the one for you. It is easy to buy and sell all around the world. You can buy it online, which can make the process a lot easier if you prefer this way, and can save time. If you have a particular kind of coin in mind - like the American Eagle, the Maple Leaf or Krugerrand, to name a few of the most popular gold coins - then do a search for that particular coin, or find the governmental mint websites. For example, check out the South African mint, U.S Mint, or the Royal Canadian Mint. (Who owns these mints, check that out also) When you want to buy gold, these sites all contain helpful tools for finding local and international dealers of gold coins.

If you are seriously thinking about this, and have put a lot of research in and feel confident, make sure you have enough of a bank roll to get the most out of this investment. To buy a 1 kg gold bar, you'll need more than $10,000. You pay less to buy gold bars than you would for the equivalent amount of gold coins, but as we explored earlier, selling gold bars presents unique challenges so you can see what I mean. Again a good way to go is stock or bullion.

when buying gold, always make a note of the current price. You can access this information and the gold fixing of London. Here, the standard price of gold is set twice daily. Though you should shop around and look for the lowest price from a reputable dealer, you should generally expect to buy gold for a little above the standard price from a dealer, and when you decide to sell the gold, you may have to sell for a little under the standard price.

Hope this helps, and gives you an idea of buying gold, I will make a version for selling gold soon.

Peace