FYInance

Posts Tagged ‘gold investing’

This is an introductory video for anyone interested in investing in silver or gold. There are many ways to start investing in silver or gold and this video gives you basic knowledge of how to get started. You can choose to invest in silver or gold or both, if you have the money.

One interesting thing about this video is that the speaker actually shows you the silver and gold that he bought or invested. There are bars and coins and different denomination of gold and silver. For silver, you can buy 1oz, 5 oz, 10oz, or 100oz bars, etc. Gold is more expensive so you will only be able to buy a smaller quantity of gold for the same amount of money you would spend buying silver.

If you want to make money fast with gold or silver, you might want to invest in stocks such as mining stocks. You can also look at how much dividends each stock is paying before you decide which one to buy.

An introduction on how to invest into Silver and Gold

In countries where online investing is not common, people actually keep gold in their home. Farmers and supposedly low income people sometimes have gold hidden away in their home in far of anyone stealing it. In countries where the government cannot be trusted, they prefer to keep money or assets in the form of gold rather than leave them at the bank.

However, in the US, most people don’t keep gold in their home. So, what would someone in the US do if he/she has a bar of real and pure gold that is likely to attract attention? Would gold investing come to mind?

“If I had a bar of pure real gold I would hold onto it and be watching the price of gold on the stock market for at least 15-30 days. I wouldn’t let anyone know that I had it for fear of someone breaking into my house and stealing it.

The price of gold is up right now and if it continues to rise, my gold bar would go up in value. If I started to see a decline I would either try to sell it for the gold market price or try to find someone who would pay more than it’s worth just to have a bar of gold.”

We have talked a bit about gold but never actually talked about gold investing yet. Gold is a commodity and if you think inflation is a major problem you may want to invest in gold or other commodities. Silver is another popular commodity.

We are going to interview one person who said that he wants to invest in gold but his circumstances do not allow such investment. So, we ask him for fun, what he would do if he had a bar of gold. He said:

“If I had a bar of pure gold, the first thing I would do would be to evaluate the market and see if I could determine whether it would likely increase or decrease in value in the next few weeks. I would then sell the bar when I thought I could get the best price. I would not look back to see if the price increased after I had sold it. Once I had the money for the gold, I would pay down my debts with half of the money, put one fourth into savings and use one fourth for travel, taking my mother to England.”

So, this reader has the right general idea of gold investing and how prices fluctuate. However, gold investing is not a short term type of investing so timing is not right for him. Anyone has any ideas?

Sometimes people have gold but don’t know its value. Gold is a great investment and the value of gold keeps going up. That means if you keep your gold now it is like to have higher value later. But, sometimes it is not practical to keep the gold when you need some money now.

A reader shares with us that he does not want a bar of gold no matter how real or no matter how great an investment it can be. All he needs is rent money. When you actually have immediate needs such as need to pay rent now, it is hard to imagine what you can do with an investment. That’s why when people need money or a job, it is not practical or appreciable to try to get them to invest or start their own business. Starting a business is an investment that does not give immediate money.

Below is one of our reader talking about how he prefers rent money than keeping gold as an investment.

“If I had a bar of gold today, I would probably take it to the local gold buyer and see if thy would buy it and for how much. I need the rent money, so every little bit helps and it seems like a bar of gold would just about pay my rent for a few months. That’s pretty much what I would do if I had a bar of gold today.”

We talked about investing in gold a little before and how valuable gold is so I think it would be fun to ask some of our audience what they would do if they had a gold bar. Of course, not everyone is interested in investing in gold or anything at all so the answers we get are interesting. We share the answers with you below.

If you have a gold bar today (a real gold bar) what would you do?

“If I had a bar of real gold I would first sell it because the price of gold is historically very high. With the money I receive from selling of the gold, I would put it into a savings account with the highest interest rate I can find, and leave it there, adding to the account, until I have enough to buy a nice piece of property.”

Interesting, this reader wants to invest in a property and would prefer to sell the gold. We already touched on the fact that you need to have emergency money before you think about long term investing. Gold is more of a long term investment than a short term so if you need emergency money or need to buy a home, gold investing may not be for you at the moment.

Do you want to share with us what you want to do with a gold bar?