Questions for you gold and silver Gurus.

if you're a newbie i would suggest buying the physical gold and silver. buy silver first coz you'll get more bang for the buck. too much things can happen with gold stocks. and definitely be wary of options. that's where the gold cartel can easily pick your pocket on a daily basis. and if you didn't know that there's a gold cartel that has been keeping gold low for more than ten years, then check out gata.org.

eventually physical gold and silver will rise faster than the dollar is collapsing so you will make money on it instead of just preserving your buying power.

(once you've got about $10,000 in physical gold and silver then maybe you can diversify. but as i see it, any paper investment in the coming years will be suspect because the whole financial structure around the world will be falling apart and that includes the stockbrokers, banks holding paper gold like perth mint, and options brokers. this is not like the late 70's and early 80's, it'll be much worse.)

Some people have stated below that gold and silver are not true investments because they won't actually make you any money but will only protect your money from depreciating.

This is both correct and also incorrect. In a strict sense it is correct however, if everybody else's purchasing power is decreasing and mine is staying the same because of my gold and silver holdings then i am essentially becoming richer in relation to everybody else! It does not matter that i am not becoming richer in a real sense, only that i am richer in relation to everybody else. So technically gold and silver are not going to make you a profit but they will make you richer in relation to others who don't have them. I hope this makes sense to everybody.

I also highly recommend holding both gold and silver since they don't always go up together and one will sometimes lag the other. Having both will tend to smooth out your gains more consistently.

Also Peter Schiff has said many times that the most important point is to hold onto your wealth during the downward slope of this collapse. Most people will be loosing everything and some will be trying to make a profit but most will just be happy to hold onto whatever they have because it will be a VERY bumpy road on this downward economic slope and logic and reason may be thrown out the window meaning things may not even make any sense economically.

I have learned so much so quickly. Thank you guys for all the postings and site links.

I've been investing in gold, gold stocks and options for about 15 years. Last year was great for gold, due to the collapse of the dollar, and next year looks to be more of the same. Holding gold and silver coins (preferably at home) will preserve the purchasing power of your savings, and then some. Gold stocks give you a little more leverage, but more risk too. Occasionally a lawsuit strikes or a director takes off with all the firm's money, and the company goes belly up. In particular, beware of gold mining firms that have hedge positions (meaning they have sold gold in the futures markets, so they will NOT profit if the gold price goes up. But if you want to make large bucks from a smallish investment, and if you're convinced that gold is about to enter new high territory as problems in the financial markets continue to worsen, then consider trading long term call options (called LEAPS) on major gold stocks. A call option gives you the right to buy a stock at a certain price within a fixed time period. If the stock goes up higher than your "strike" price, you can make big money, and sometimes very quickly. On the other hand, if the stock price goes lower, you can lose the whole price of your option. Options allow you to profit from movement in a stock's price without having to actually buy the stock. You can controll 100 shares of a stock like Barrick or Newmont for two years for about $10 a share, depending on the strike price you choose. I like the contracts for Jan. 2010 on Barrick, Goldcorp, Newmont or Kinross gold. I bought some Barrick 2009 LEAPS (symbol VBXAH) back in May 07 which are up over 1000% to date, with another 11 months to run. Wish I'd bought more of them, but you never know; this is a very risky way to invest. I've had other options expire worthless.

If you're completely new to gold, stock and options trading, I recommend that you become familiar with the Kitco.com website. You get all sorts of useful news and tips about the gold markets there, with a fine array of different newsletter writers publishing free columns (mostly designed to lure you into subscribing to their advisory services.) Good luck!

In the last New Hampshire Democratic Debate, the moderators shared with the candidates that the Funds for Medicare and Social Security run out of money and will begin taking loans in 2013 and 2017 respectively. David Walker, the comptroller general of the United States, says that by 2040, at our current spending and taxation rates, the money required to pay ONLY the interest on these loans will eclipse the entire federal budget...

Besides firing David Walker,

Would you:

a) Cut benefits?
b) Raise taxes?
c) Cut spending?
d) Do nothing and still fire David Walker?

Since we know you will all answer C, the follow up question is:

Where?

If you live in an area of known gold reserves, the best way to accumulate gold is by mining your own. I frequently make trips from the Willamette Valley to the Southern Oregon coast to mine the gold bearing sands that trend from the mouth of the Klamath to Coos Bay. The only equipment I take with me are a few beach sluices, several 5 gallon buckets, plus shovels and spades. I use the sluices to separate the heavy sands from the lighter. When I have a bucket or two of heavies, I take it all home to process out the gold and platinum. When I have several ounces of placer gold, I then have the choice of selling to a refiner or to private parties, after which I can purchace manufactured gold and silver in whatever form I wish. Any platinum I always sell to refiners. This is hard work, but after a very steep learning curve can be done by any person of reasonable physical ability. My long term cost has averaged just over half the cost of buying gold or silver outright, so I think this may be a winner for me.

slightly different views on how to invest here.

I would take the time to read the following:

http://www.321gold.com/editorials/fekete/fekete012808.html

Professor Fakete helps make clear the difference between holding physical gold (that could include bullion held in the Perth Mint as well as in your personal possession) and gold mining stocks. See the bottom of the page, the paragraph marked by the * for how gold stocks are different from gold.

Bottom line: the physical gold should not be held as a money-making investment, but rather a protection to maintain your savings from collapsing currencies. Gold can never go to zero.

Mining stocks can make you better profits, but must be considered as any other stock purchase...better rewards, higher risks. Owning stock in a company exposes you to their busness practices, failure or success in finding new gold deposits, etc.

So, if your $10,000 is coming out of cash savings, I would go physical. If it's coming out of existing stock holdings, you might split it up to some physical and a bit into gold mining stocks. I would avoid highly speculative stocks unless you are going to spend a lot of time getting into this. I personally own shares of Goldcorp, a solid producer, as well as some more speculative ones.

also remember.... IF YOU CAN'T TOUCH IT YOU DON'T OWN IT.. PAY CASH AND TAKE DELIVERY.. I DON'T TRUST THE BANKS.. if the whole banking industry locks up how are you going to sell your stocks and get them into cash..?? silver and gold coins have always been money since the beginning of time and will be able to trade those coins just like you trade dollar bills now!

just some knowledge from buying myself, but you might want to buy NOT just in ounces but smaller like, quarter ounces. consider if you have to barter for a service or purchase, someone won't have "change". so smaller coins are more expensive, and in my opinion is the best way. but dont put all in gold, buy silver, junk silver which consists of circulated pre-1964 coins. buy in silver dollars, half-dollars, quarters, dimes, nickels. hope this helps.

There are many ways to invest in gold and silver. The simplest way is to buy gold and silver coins like American Eagle coins produced by the US Mint. You can buy these from local coin dealers with cash or order from firms that will ship them to you. These coins are recognized worldwide and are easily sold. This is good for long term holding but storage and safety become an issue. 10 one ounce gold coins are pretty close to $10,000.00.

If you have a brokerage account you can purchase gold and silver mining stocks or Exchange traded funds. Ron Paul in his financial disclosure statement shows that he owns about two dozen or so mining stocks including Barrick Gold, Agnico Eagle, Coeur D'Allene mines, Goldcorp, Pan American Silver, Newmont Mines and other smaller mining companies. You must be diversified and know what you are doing with individual stocks, otherwise buy a good gold mutual fund. Ron Paul's portfolio went up over 30% in 2007.

Exchange traded funds track the actual price of gold or silver by buying and storing actual bullion. Ticker GLD for gold and ticker SLV for silver are two popular choices. When you sell you are taxed at special rate for collectibles, no long term capital gain treatment.

Another choice is the Central Fund of Canada ticker CEF. They are a closed-end fund that buys both gold and silver bullion. Although you pay a premium above the net asset value, some analysts think that their approach assures the highest degree of safety. They have been around since the late 60's and are not tied into the banking system like the Exchange Traded Funds.

Right now gold is over $900 an ounce. In 1999 it was $252 an ounce. Gold and related investments are difficult and volatile. Where it ends is the source of much speculation. However gold is the ultimate money of last resort.

Your best bet is to educate yourself first. You should realize that mining stocks are much more risky than gold bullion or silver bullion or coins. A mining stock can go out of business even in a raging bull market for gold. A gold or silver coin in your hand will always have some value.

investment or as a hedge against inflation. Gold stocks tend to act like stocks first and foremost. Gold coins are my personal preference, although you will pay a premium for them. Find different sources and study the pros and cons yourself. Also, don't rule out U.S. silver coins either. They have different properties from gold (less wealth in the same amount of space and weight) and that's both a pro and a con. Good luck.