Buying in to Gold

deemy2004

Gold is a commodity the same as any other commodity.

Why gold ?, why stop there ? Why not diamonds ?
Why not copper ? Why not alluminum ?

All can be used as means of exchange, especially in bartering type system which you suggest is the future.

Gold is an old pre-computer age monetary system. Unfortunately until they event the teleporters you won't be able to buy goods online with deliverable grams of gold !
If your worried now, then as we move more and more into the E world, your worries are likely to me multiplied 100fold, though that IS the future, either get relaxed about and accept it or panic and start buying gold for NO REAL reason other than FEAR.


Personally, if there is so much interest in buying gold at this point in time, from 'the little people' than that would be probably the greatest signal to SELL GOLD !!!

minhalm

I am interested in investing in gold and would really be grateful if someone could point me towards a reputable and best value for money agent through whom I could purchase approx 1.5k worth of gold. Or alternatively would it be better as in yesterdays Sunday Times to invest in shares of Gold Bullion Securities whose share price represents 1/10th of an ounce of gold. Thanks

minhal

cheerfulcat

Gold is a commodity the same as any other commodity.

Why gold ?, why stop there ? Why not diamonds ?
Why not copper ? Why not alluminum ?

No, it's not. Gold holds its value supremely well. It also doesn't take vast quantities to make a valuable coin. Copper has, of course, been used as currency. Diamonds cannot be made into coins or bars, and nowadays there are many ways of "improving" an insignificant stone. In any case they are not nearly as rare as De Beers would like you to think ;-)


.

Gold is an old pre-computer age monetary system. Unfortunately until they event the teleporters you won't be able to buy goods online with deliverable grams of gold !

You're wrong. E-gold exists for online purchases -

http://www.e-gold.com/e-gold.asp?cid=484483

If your worried now, then as we move more and more into the E world, your worries are likely to me multiplied 100fold, though that IS the future, either get relaxed about and accept it or panic and start buying gold for NO REAL reason other than FEAR.

That's just silly. Gold is a perfectly acceptable hedge in a portfolio. One third of the world's gold is held in central bank reserves; do you think that all those bankers are wrong?

Cheerfulcat

cgnao

To all those interested in buying gold, I would suggest to stay away from Gold Bullion Securities, exchange traded funds, derivatives, unallocated gold accounts and all other forms of paper gold. There are only two serious ways of buying gold:

1) Physical gold, i.e. coins and bars. This is the preferred way, but it is expensive because of high deler's commissions and safety deposit box fees.

2) Allocated gold accounts. Some banks provide this service, even though most will try to talk you into unallocated gold instead. In addition, https://www.goldmoney.com is the ONLY online allocated gold account available. It is particularly good for smaller amounts, especially for people with UK bank accounts: being in Jersey, it is integrated in the UK clearing system and this means NO bank transfer fees.

Remember, gold is a hedge against a major financial catastrophe. In such an eventuality it is likely that unallocated gold and modern derivative finance will eventually fail together and paper gold will be nothing more than worthless paper.

Got gold? Protect yourself.

cgnao

Why gold and not something else?

1. Gold is durable. It does not rot like wheat or oats or barley or soybeans. It does not tarnish like other metals.

2. Gold is divisible. Unlike diamonds.

3. Gold is convenient. Because of its high value density, it allows you to own, transport and hide considerable value very easily. Did you know that a golden golf ball would weigh one kilo and be worth in excess of £7,000 at current market prices? Unlike lead or copper or aluminium or zinc. One ton of copper is worth less than half that amount and would make more than 2,000 golf balls.

4. Gold is consistent. Unlike fine art, diamonds or real estate.

5. Gold is scarce, hard to find and therefore has intrinsic value. It needs to be mined, ounce by ounce, at high cost. Unlike paper.

Got gold? Protect yourself.

Walletwatch

Such is the futility of the whole exercise isn't it? Man digs deep underground, exploring for gold, finds it, refines it, then it changes hands, and finally it gets stored, but where... again underground, on the Bahnhoffstrasse in the underground vaults of the Swiss Banks... a perfect example of Keynesian economics to generate work by digging holes and filling them up !

Not exactly money-saving, just trying to give this whole discussion a philosophical perspective.. admittedly this is more a candidate for the Money Saving Arms rather than here

deemy2004

Why not buy some land in Africa and start digging

Whatever you say, gold IS a commodity same as any other, that can be bought and sold. Its price rises, its price falls.

If I liked the look of having a gold bar im a cabinet on my mantlepiece then I may buy it, but apart from the uncertainty during world war 2, there has been no real benefit from someone in the UK investing in Gold rather than say the stockmarket, or property.

Also in times of such extreme uncertainty such as war !, the governments have a bad habit of consficating privately held gold !

cgnao

"Gold still represents the ultimate form of payment in the world."
— Alan Greenspan, May 1999,
Testimony before US House Banking Committee

Protect yourself.

deemy2004

What about the day that the scientist start manufacuring gold ?

And yes the technology does exist as elements can be converted into different elements by normal radioactive decay and by induced processes in nuclear reactors and particle
accelerators.  

Already the technology exists to manufacture flawless perfect diamonds. Thus investing so much in a commodity is far from safe !

Gold...........Its only a question of time.........

Walletwatch

I agree with the general drift of what Deemy is saying. Alan Greenspan may consider gold to be the ultimate form of payment, but it certainly is not the practical one. I don't see myself cutting a gold ingot to pay for my supermarket shopping or for my haircut. To that extent, gold is a commodity that is traded, and that is subject to highs and lows...

I personally have always considered gold to be an unworthy investment, except in cases where one gets lucky and hits a short-term jackpot (Like just after September 11, or recently when the dollar went down bigtime and gold rose by crazy proportions)