FYInance

Posts Tagged ‘investing in 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.”

If you're new to FYInance, we're going to make it worth your while to subscribe to our FYInance RSS feed. It will keep you up to date, on your terms!

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?

Some people don’t like to invest in stocks or bonds but they like to invest in precious metals such as gold. Why is gold valuable?

Reasons why gold is valuable

1. Gold is the most ideal medium of exchange that retains its value.
2. Gold can be traded like any other forms of valuables even when money is not accepted.
3. Gold is malleable, ductile and can be easily measured and divided.
4. The qualify of gold is consistent.
5. Gold does not rust, tarnish or corrode
6. Gold is quite indestructible
7. Gold is attractive
8. Gold is recognized and accepted by almost everyone

So, in this market, maybe investing in gold is a good idea… any thought anyone?