Is it wise to invest in gold?
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Answer:
I'm not a big fan of gold as an investment. Although it is a "steady" index, as opposed to currency, gold just does not appreciate at the same rate as the S&P, mutual funds, etc.
That being said, if you STILL want to invest in gold, I would suggest no more than 10 percent of your portfolio contain gold.
You may hear the old adage "An ounce of gold in 1880 could buy a good man's suit, and in 2007 an ounce of gold can buy a good man's suit." By this logic, the an ounce of gold you buy now, in 40 years, will be able to buy you a .good suit. Whoo hoo.
No imagine if you took the money you would have invested in gold and invested it in an S&P 500 index. The historical return on the S&P is great!
The emerging stock markets, e.g. China and India are going to be the next big players. I'm a betting man, and I'm betting on them to come through for me.
Good luck!
I would go with the actual gold bar, but most people go through the stock market. Their buy in a lot..
Gold right now is at an almost all-time high. Ever heard of "buy low, sell high"? I would never invest in something that was near its all-time high. Instead, take your money and invest it in mutual funds or individual equities, and hold for the long term, that is, don't try to trade every time a stock goes up a little. Keep a well-balanced portfolio of stocks. Deposit into your account on a regular basis, and never take it out. Never put money into "the bank" as an investment. Remember, banks make THEIR money by taking YOUR money and lending it out at a higher rate. Good luck!
Gold is usually thought of as more of a hedge against inflation than an investment, but when I checked several months ago, it had been going up at about 10% a year. Unlike stocks, it will never go to zero.
You can get a certificate saying you own gold, which gives me the willies. On the other hand you can get the actual metal, which also gives me the willies. People can steal it, and that includes soldiers with metal detectors, and don't tell me that never happens. You can bury it. It won't rust, but will you remember the exact spot years later? I think the best place to hide it is up a tree, but will you even be able to climb up there years later? Maybe you'll be able to enlist a young relative to help you.
Hi..
The people in the know are starting to talk more
about buying gold. I'm not a believer in buying physical
gold..someone has to mind it.
There are ETF 's that buy gold..you can look for them
and invest that way.
Just as an indication of where gold is heading..look
for the title..where is gold heading?
Keep in mind:
Gold shares may not act according to the gold price
and may correct with the market.
Gold has been a great investment during times of high inflation.
Had you bought gold coins in the late 1960's and early 1970's, you would have seen tremendous profits in those years.
Since then, gold has not appreciated as much as other investments.like real estate and stocks.
Unless we see a return to high inflation again, I'm not sure if gold will do as well again.
I would only invest very little in gold, and the easiest way is to buy some gold producing company's stock.
I have some shares of a Japanese gold ming company.
The symbol is TGB.
I bought it around $2.50 a share.
It stands now at $3.00 a share.
Should it get more and more profitable, it could see a nice move to much higher.
Your better investments should come from uranium mining companies.
The hotest one now seems to be CCJ.
That's a Canadian uranium mining company with strong profits.
YES YES YES...it is your best hedge against a falling dollar (which is falling thanks to our export deficit which you can in turn thank China) which is at a 3 year low against the Euro and the Yen. But take great care in following the dollar...live by the gold, die by the gold. Your best bet is to buy gold stocks...buying gold itself is a expensive proposition...unless you are Paris Hilton.
Not as your only investment. But gold and precious metals do add diversification to a portfolio because its not correlated well with stocks and bonds.
Gold is not a good investment venue and must satisfy the following approaches;
1. It must be held in the form of jewellery during marriages and other festive ocassion.
2. Gold attains more value during disruptions such as war,political instability when other social and economic uncertainities prevail.
3. Gold can be traded in for the trading margins and is not suitable as long term asset as the returns observed over the last 30 years have been 4.5% - 5.5% in varoius regions over the world whereas equity has given 15% - 18% on an average and bank fixed deposits 7% to 8.5% over the same time frame.
1) Yes.
2) Pros: You make a ton of money. Cons: You lose 10% of your money.
3) Stock Market.
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