How do I invest in gold and silver?
Answer:
You may take position in Junior mining companies. I do realize the risk is high, but if you have a 5 year+ time horizon and are willing to ride out the ups and downs. I thing the best gold play for you is NAK on AMEX. The silver play is tricky, FLMTF is a good one. Both companies are exploring in the heart of Alaska.
P.S. I own both, NAK for my kid's 529 and FLMTF is weighted about 50% in my 401K.
Hope this will help.
this site should help you get started a little bit.
http://www.rb-trading.com/begin.html...
Open a brokerage account at TD Ameritrade and drop me a line.
You need to open an account with a commodity brokerage firm. Alternatively, you can buy streetTRACKS Gold Shares (NYSE:GLD) and iShares Silver Trust (AMEX:SLV) through a regular brokerage account.
This said, the time to buy precious metals is long since gone. Gold should be bought at below $320 an ounce, since its production cost in most instances is $320-360... At current prices, it is only a matter of time until the producers flood the market... The gold price peaked in May 2006 and has been on a slow downtrend since...
I would say the easiest route is via the ETFs (GLD and SLV).
It is far easier than futures because: a) you don't have to remember to roll the contracts, b) can start with a fairly small sum, and c) less hassles with the tax man with the opening and closing of futures contracts.
I suspect it is easier to go via ETFs than stocks because ETFs take away company specific risks. For example, unless you have some insights into the reserves and the operational aspects of each mining company, it is easier to gain exposure via ETFs (i.e. you only need to have a view on the metal prices).
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