1 thought on “Is investing in gold a good idea?”

  1. When you say "invest in gold" you have to separate your ideas into "investment" and "Survival"

    Gold as a metal is for Survival…If a catastrophic event hits the capital makets, or if WW 3 happens etc, you will need actual gold for some things (like jews fleeing the Nazis in WW 2) .

    Gold in the form of ETFs or "GoldMoney" or certificates , or even gold coins or bullion in your safety deposit box, is not a good "Investment". Shares in gold producing companies, or shares in a precious metals mutual fund is a good "Investment" if gold goes up. This is because shares in gold companies have leverage to the price of gold.

    If you have an ounce of gold $650US and it goes up $100, you clear $80 after selling commission.

    If you had $650 US in Producing gold shares, if the gold price went up $100, your gold shares would probably go up $200. Why? because It cost $X to produce an ounce of gold.
    if it sells for $650, that price minus $X gives profit per ounce. Sell it for $100 more and the profit is $100 more per ounce, cause it still costs $X to get it out of the ground

    SO, IF you beilieve gold is going up, buy Gold shares or a Gold Mutual Fund, But beware .this is a volitile sector and hence has it's own particular set of risks. This should contain a small part of your investment portfolio, Most advisor say 5-10 %.

    That being said, I am a gold bug, I beleive in gold, but at the moment I own 1 Gold maple leaf coin which I will never sell, I sold my gold shares at gold $680 and am waiting to buy back in as I expect a further drop from here.
    When I am happy about the timing, I will go back into shares with $600,000

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