Total Pageviews

Saturday, July 30, 2011

How to buy gold

Let's just suppose that it seems obvious to you for whatever reason that gold is currently and for the foreseeable future the optimum investment.

But like everyone, you're afraid that whenever you buy will be the day gold corrects by a scary 150 dollars.

Still, you know you need to start buying.

What do you do?

1. Don't think of it as a trade. Don't time it. Don't trade it.

The only reason to buy gold is that you've done a macro analysis of the world economy and have come to the conclusion that all paper currencies - euro, yen, dollar, will continue to be debased and you understand that that leaves gold as the only stable currency.

2. Add up your liquid investments/trades priced in dollars, euros, and yen. This means all stocks, bonds, bank accounts priced in dollars euros or yen. Take a portion of those - say start with 10 percent, and work your way up to 30 percent. Convert 1/3 of the your new investment pool into gold on Monday. Another third the following Monday. Repeat until you have the amount of gold that makes you comfortable. Even if you only buy 1/2 ounce a week - it is a diversification that will pay off over time.

3. Don't know how to convert dollars into gold. Call a big wholesale dealer. I use APMEX.COM. They will deliver for a reasonable price, and their bullion prices are also reasonable. In New York: Manfra Tordella and Brooks is a comex repository and they can even store your gold for pennies a month until you care to pick it up. Once you've purchased there you can call to lock in a price over the phone.

4. Don't stress out about the form. Eagles, maples, philharmonics, krugerrands, it just doesn't matter. Buy whatever's cheapest at the moment. Bars are a bit cheaper because the government mint coins don't have to be assayed. But bars from major refiners are fine too.

5. Get a safety deposit box at the bank. It costs about 100 dollars a year. Stick your gold in there.

6. Consider silver as a good alternative if gold is just too expensive. Silver wil move up over time with gold.

7. If you know a lot about history, and are fascinated by certain historical periods in certain countries start to explore gold coins and gold medals associated with those periods. These gold coins are in a tremendous bull market parallel to the gold bullion bull market. The market will run just as long as the gold bullion bull.

8. Peruse GOLD-STATER.COM. Not necessarily to buy, but there's a lot of good historical information on gold coins there.

No comments:

Post a Comment