2 votes

Gold investment help please

Hi all, I am interested in beginning to invest in gold. However, I have no idea where to begin. Is this merely buying shares in mines, buying up gold coinage, etc?

If you were starting today, where would you start?

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stick with silver instead.

stick with silver instead. I'd start right here...


That's one of the best deals going with only 35,000 minted. Earlier 5 oz. coins in the America the Beautiful series are going for $300-$400...such as the 2012 Hawaii Volcano coin...


Rushmore is a steal at $120. It was launched at the mint in December and sold out in 3 weeks. Apmex and other bullion dealers are already getting low on inventory. Get it while it's still available. I think it is easily over $300 in a year or two...and that is if silver stays flat.

Buying silver semi-numismatic coins at a couple bucks over spot gives you the investment in silver, but also potential further price increases from collector demand.

I wouldn't even consider buying mining shares. The mines , imo, will be nationalized in the coming years. Anything in paper can easily be confiscated or otherwise disappear before your very eyes. If you can't hold it in your hands, you don't own it.

“Let it not be said that no one cared, that no one objected once it’s realized that our liberties and wealth are in jeopardy.”
― Ron Paul

Thank you all!

I really appreciate this info both diverse and helpful!

fireant's picture

I'd wait

Gold looks very weak; doubtful it has bottomed yet.
The worst thing you can do buy some gold and have it crash right away.
I still look at gold as a single premium insurance policy rather than an investment. If that is your perspective, buying a little at a time on a regular schedule is still the best policy. Then put it away and forget it. If you never need that insurance during your lifetime, it is easy to pass it on to your children. You can't beat it for insurance.

Undo what Wilson did

Find out what the daily 'spot' price is

at kitco.com under the 'All Metal Quotes' tab. Right now it's at $1262/ounce. It is possible to buy fractions of an ounce.

Find a local shop that charges the least dollar amount above spot, and purchase with cash. Jewelry stores/pawn shops often have gold and silver for sale, cheaper than exclusive gold/silver dealers. See this dealer by me is charging $1389-$1397 for an ounce. That's too much! https://www.momssilvershop.com/index.php?main_page=index&cPa...

Shop around.

Generally, dealers do not file IRS forms when you buy precious metals, unless your purchase or series of purchases totals $10,000 or more in cash. If you ever need to sell some of it back, make sure you ask the store what their IRS reporting practices are. You don't want the IRS, or anyone knowing you have it.

Don't mess with paper GLD or mining shares. If you can't pull down your pants and rub your junk on it, you don't own it.

When a true genius appears in the world, you may know him by this sign: that the dunces are all in confederacy against him. ~J. Swift

It depends on a lot of things

how much money you want to save or invest, what your time frame of investment is, risk tolerance, what your investment goals are, etc.

If you are saving a little money and want to buy hard assets, silver may be a better deal at the moment. If you have only $1000 or so, I would suggest buying 40 ounces of silver rather than a fraction of an ounce of gold. Having a physical asset in your possession is a good insurance policy, but most people say that should only be a fraction of your savings. If you have $100,000 to invest, that is a different story.

Mining stocks have been beaten up the last two years, but they can go down a lot more. No one knows for sure. There are a number of gold and silver mining companies paying 2-3% dividends right now (AUY, AEM, GG, NEM, and others) and selling for a lot less than they did 2 years ago. If you want an income stream and are willing to take a risk, I think mining stocks are a bargain right now.

There are also precious metals mutual funds (like TGLDX) that own physical metal and mining shares. The mutual funds are a good way to diversify when you have a small amount to invest. The drawback is you have to pay a fee of ~1-2% to the managers of the fund. Most mutual funds also have a minimum to buy in. Sometimes that minimum first purchase is only on the order of $1000, sometimes quite a bit more.

The ETFs (like GLD) are paper claims on gold that cannot actually be converted to physical gold unless you own millions of dollars worth of shares. Sprott has some ETFs that are more tightly linked to physical metal. However, I personally think ETFs are just a trading/gambling vehicle. They don't pay dividends and I personally wouldn't buy them.

We all want progress, but if you're on the wrong road, progress means doing an about-turn and walking back to the right road; in that case, the man who turns back soonest is the most progressive.

-C. S. Lewis

You'll get 100 responses in a

You'll get 100 responses in a short period of time on here.
Fundamentals I learned when first starting out:
1) Paying with cash or personal check will save you about 15% with most dealers online
2) Don't buy numismatics (old gold like 1920's st gaudens) if you are 'investing'.
3) Don't buy from China, don't buy from non reputable dealers on Ebay.
4) Try some of the bigger dealers like Provident Metals, Apmex, Kitco, etc they make buying easy, then venture out.
5) Don't tell anyone you don't trust that you are buying precious metals.

Southern Agrarian