Thursday, October 27, 2011

Investor's guide to investing in gold

A friend sent me this guide to investing in gold. Reading through this document, one can see that there are many ways of investing in various types of gold products, but the investor should be careful about selecting the trusted parties, as there is a real risk that some of these products are fraudulent. I know of a product which offers a buyback guarantee, but the investor did not know that he is paying for the gold at 50% higher than its real market value!

A safe way is to invest in gold bullion, but it is a big hassle to store the gold. It may be safer to invest in the Gold ETF (e.g. the ETF managed by SPDR) or to invest in gold futures through a regulated exchange.


Tan Choon Hong said...

Is gold becoming a bubble?

Even the great Isaac Newtown was seduced by the South Sea Bubble and discovered to his consternation that the stock could not defy his law of gravity. He lost an astronomical £20,000.

Anonymous said...

Please spend some time reading about GATA and all the evidence and documentation. Than draw your own conclusion.

Dont just depend on hearsay and some ANALysts report.

Those that want to know and spend time researching will be well rewarded. Those that are too lazy to learn and just want to follow advice of "experts" without truly understanding what they are doing will never have the conviction on their investments.

Anonymous said...

I am wondering whether gold is an investment. Their price is basically determined by supply and demand, $US and speculations. Once the tide turn, investors probably have to hold their gold for many many years to come, maybe 20 years?

Anonymous said...

Between a piece of paper and a piece of gold, the choice is easy.

Money is back by govt's promise. It has no intrinsic value.

Every central bank, billionaires, mafia, drug load, arms dealer, etc etc, has in their possession hoardings of gold. Why?

Because one day they might wake up to devaluation or collapse of currencies (paper money) and their "asset" would be wipe out completely.

The value of gold has not gone up. Its the value of the money that has depreciated. What you can buy with 1oz of gold 20 years ago, today you probably can buy about the same thing. But if you had kept the 1oz of gold equivalent in currency 20 years ago, today that amount you cannot buy back the same 1oz of gold.

If you understand this, than you will be well rewarded.

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