I figured I would put in my
Two Cents here...
There has been a lot of good advice and some very interesting opinions on this thread so far..
If you're new to gold or PM investing my first question for you is.. Why are you investing in gold?
In my opinion gold is used as a preservation of wealth and a hedge against a poor economy. If you don't exactly have a lot of wealth to begin with then gold isn't your best investment option.. there are others much better out there. If you believe that the economy is troubled and we're in for a rough time... then YES gold would be a good idea regardless of your financial status.
As for how much to buy... well that would depend on your financial situation... some here have talked about 1/10ths and how they're very liquid, which is true but there's also a premium associated with fractionals. 1 oz gold rounds/coins/bars carry the smallest amount of premium. Sure as someone said if you buy 100 oz bars you're eliminating the premium ... but in all honesty I don't run in those circles and never will. I prefer buying 1 and 5 oz bars or coins.
The next question often brought up is how often or frequently should one buy? That also is dependant on your finances, age and your opinion of the economy. Typical financial planners suggest that gold should have no more than 10% of your portfolio. If you're young I would definetely agree with this.. there's better places you can put your money to work for you. As you get older you may wish to diversify into more secured assets like dividend yeilding stocks, bonds, and gold. The thing I like is that .999 is exempt from capital gains.. so I like to buy it for the future so I don't have to cash out as much of my RRSP's or stocks and worry about incurring a large amount of capital gains taxes.
Personally I can only afford to buy once or twice a year.. if you can buy more frequently than that, then you will be able to take advantage of better dollar cost averaging techniques and not worry so much about any swings in the market. Personally I try to take advantage of any market dips for when I buy to add to my stack but I have a certain date marked on my calandar where I'm committed to purchase.
My best advice to you is... find a reputable dealer. There is a TONNE of fakes out there and if you don't know what you're doing you can really get burned bad!
Do a lot of reading... ask a lot of questions... then go get some shiney and tell us all about it...
Good luck!
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Posted 10/30/2013 12:50 pm
to CCF!
