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Author Topic: What is the best way to buy gold?  (Read 682 times)

Hereford

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What is the best way to buy gold?
« on: June 10, 2011, 03:42:31 PM »
Local pawn shop outfits here have coins and such for sale for 4-5% markup.

Is this the best way to get some?
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sync pulse

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Re: What is the best way to buy gold?
« Reply #1 on: June 10, 2011, 04:02:46 PM »
Quote from: Hereford on June 10, 2011, 03:42:31 PM
Local pawn shop outfits here have coins and such for sale for 4-5% markup.

Is this the best way to get some?

If you believe the price of gold is going to rise;
The thing to do is to buy gold futures on the commodities market...If you are long on gold (you are taking the position that gold is going up),...and it does indeed go up,...for every contract in gold that you hold,...and gold rises in value,...for every penny that gold goes up, you will make 50 dollars.

If you believe the price of gold is going to drop;
You go short,... and for every contract you are short in gold,... and gold drops in value,... for every penny that gold drops,...you will make 50 dollars.

HOWEVERIf you are long in gold and the price goes down,...you will lose 50 dollars;
If you are short gold and the price goes up,...for every penny that it rises, you lose 50 dollars.
However risky these transactions are,..if you get it right,  you will become rich in short order.
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sync pulse

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Re: What is the best way to buy gold?
« Reply #2 on: June 10, 2011, 04:17:17 PM »
A less risky way to invest in gold is to open an account with Fidelity and buy shares in a gold related mutual fund...

If that is too tame for you, trade options in gold related stocks...
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sync pulse

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Re: What is the best way to buy gold?
« Reply #3 on: June 10, 2011, 04:27:41 PM »
If you want desperately to own the physical commodity,  buy bullion bars.  Don't buy too much because you have a much greater chance to make money long term simply by buying shares regularly of Fidelity Magellan...
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Roger Bacon

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Re: What is the best way to buy gold?
« Reply #4 on: June 10, 2011, 05:06:48 PM »
Quote from: Hereford on June 10, 2011, 03:42:31 PM
Local pawn shop outfits here have coins and such for sale for 4-5% markup.

Is this the best way to get some?

Rent a small store front in bad area of town, get a few "BUYING GOLD" signs, pay thieves and drug addicts half of what there gold is worth, take gold to refinery and have it melted into bars.
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Hereford

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Re: What is the best way to buy gold?
« Reply #5 on: June 10, 2011, 11:42:19 PM »
Quote from: P.I.P on June 10, 2011, 05:06:48 PM
Rent a small store front in bad area of town, get a few "BUYING GOLD" signs, pay thieves and drug addicts half of what there gold is worth, take gold to refinery and have it melted into bars.

Indeed.

It IS interesting those places have not been addressed yet for what they are...

Question for sync...

How is having the paper saying you have a position in gold or any other precious metal better than having the real thing? I am looking at the physical item... coins and such.
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sync pulse

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Re: What is the best way to buy gold?
« Reply #6 on: June 11, 2011, 02:16:56 AM »
Because the futures transaction is leveraged if you have a bar of gold and the price moves up a penny an ounce your position is worth a penny more;
If you are long in a futures contract and it goes up a penny, you are up 50 dollars.

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