Lux Investing
How would one go about investing in Gold?
Do you buy stock??? What are the pro's and con's of owning gold? How would you go about buying it???
Public Comments
- Two possible ways. Buy GLD, a gold index fund where 1 share is equivalent to 1/10 oz of gold. Or buy ABX the largest gold mining company. The advantage of ABX is leverage if the price increases dramatically.
- The best way to own gold is to buy and take physical delivery of the gold itself. First off you need to understand that gold is not an investment. Silver is also in the gold realm as well, so when talking about gold, silver is included. Gold is money and a store of value. It is the "Currency of last resort" as Greenspan has stated many times through the years. Gold doesnt pay interest, dividends, doesnt restate earnings, has no lawyers, accountants, CEOs or CFOs lying to you on television. Gold doesnt ask for bailouts, doesnt go BK and cannot cook its books. Gold cant be debased or printed at the will of a company or governmetnt and holds its purchasing power. Gold sits there as a store of value, is labor intensive, and a one ounce coin will not split into a bunch of half ounce coins at the direction of the pin striped bandits on Wall Street. Also Gold is the ONLY asset class in the last ten years to increase in value and retain every dollar of its purchasing power. Gold can be bought in many forms. Coins are the best. I personally like the US coins in both the Gold Eagles and the pre 1933 US $20 gold peices. Gold Eagles are hard to find right now but $20 pre 1933 gold pieces are avalible from PTG at www.allamericangold.com . This is the company I use and I like them and their radio show that airs every weekday. Once you have physical gold and silver then ETFs or stocks are fine but I strongly suggest in holding physical gold for long term value and storage. Cons to owning gold is it is subject to short term market manipulation by the Federal Reserve and bullion banks. This can cause the short term price to be pushed down as is being done today. This is why the paper price on gold verses the physical price is not he same today. Paper price today is about $830 an ounce but the physical price is ranging between $900 to $1200 depending upon the product being bought.
