What should you one do if one wants to invest in gold, to counter the dollars value due to inflation?


gold buying
Mysterious Stranger # 44 asked:


Is it smarter to buy gold from a stock broker or some other commodities agent? Or should one simply buy the bars and store them? But where can someone just go and buy the bars, and then where to later sell them. What is the smartest and most practical choice?

This entry was posted on Monday, March 30th, 2009 at 12:00 am and is filed under Investing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

5 Responses to “What should you one do if one wants to invest in gold, to counter the dollars value due to inflation?”

  1. Chris K Says:
    March 31st, 2009 at 1:48 pm

    Physical gold would provide a store of value but it’s hard to store and quite pricey. There are some gold ETFs you might research. Junior mining stocks should do well if gold stays in a bull market. Research is critical here.

  2. Derek Says:
    April 1st, 2009 at 5:32 am

    Gold certificates may be more liquid than simple bars. You can cash them out easier.

  3. Computer Guy Says:
    April 1st, 2009 at 3:59 pm

    Local supplies have dried up, as demand picks up.

    Check the “pool” accounts, they are quite convenient:

    Grandpa

  4. KJ Says:
    April 4th, 2009 at 11:06 am

    If you are looking for protection solely from inflation I would suggest looking into buying TIPS (Treasury Inflation Protected Securities). These bonds are adjusted every year to account for inflation. If you are also actually worried about US dollar decline versus other currancies I would suggest diversification into other currencies.

    Gold has historically had a low return. I personally would avoid it. in 1988 years ago gold was about $400 at todays price of about $845 that is a 112% return or about 3.80% per year. Inflation for the same period averaged 3.06% so you did gain against inflation, but not by much. There are a lot of investments that returned a far greater amount.

  5. Credic J Says:
    April 6th, 2009 at 4:36 am

    I think one of the best options for buying gold is this site:

    Take a careful look at it and weight your options, but they definitely offer the best price for buying and selling real gold.

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