What is wrong with buying gold in different forms?
Rinky Dink asked:
I’m confused, some say buy coins! Others say buy nuggets that are made by mother nature (no matter how big or small) I’m new at buying gold and trying to be careful. I always seem to get honest answers here. HELP!!!!!!!! Thanks in advance
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I’m confused, some say buy coins! Others say buy nuggets that are made by mother nature (no matter how big or small) I’m new at buying gold and trying to be careful. I always seem to get honest answers here. HELP!!!!!!!! Thanks in advance
July 10th, 2009 at 11:03 am
Gold is really a rotten investment, it doesn’t earn interest and the price can fluctuate wildly. You would be better off putting your money in a CD and at least be certain of earning some interest. That said, the safest investment in gold is in bullion coins. The content is known and they are the easiest to buy and sell. I would suggest American Eagles and Canadian Maple Leafs as the best as the dealer markup will be the lowest on them.
July 13th, 2009 at 6:28 am
It doesn’t matter what form it is if it is real gold, it is sold by weight.
July 16th, 2009 at 4:55 am
I would avoid flakes and nuggets. There is no guarantee of purity with those. Either branded bars or coins or an ETF is the best way. The ETF is the least expensive way and the easiest to sell also. Coins generally sell for the highest premium but there was a time when South African coins actually sold at a discount. Also I might add that there is a considerable bid/ask spread on physical forms of gold whereas on an ETF only a brokerage commission. GLD is the most popular but I believe IAU is another. One might also consider gold mining shares. These are more leveraged than just plain gold. That means that when the price of gold increases the gold mining company stocks tend to rise much faster and vice versa. There are also index funds of those. GDX is one.