Buying gold

Hi all,

Do you think it's worth buying 1/2oz of gold to start with. My plan is to diversify from property atm and get smaller amounts of gold rather than a 1kg block. Has anyone bought smaller amounts of gold?

Thanks :)
 
maybe worthwhile if you are a refugee planning to flee the country and you need to carry all your networth with you in an internationally accepted currency.
 
Hi all,

Do you think it's worth buying 1/2oz of gold to start with. My plan is to diversify from property atm and get smaller amounts of gold rather than a 1kg block. Has anyone bought smaller amounts of gold?

Thanks :)

Are you thinking physical gold or unallocated gold?

Remember if it is physical gold you're loosing a % to the trader every time you buy & sell. Plus you have to have somewhere to keep it, insure it, ect.

Having said that - if you believe gold is likely to outperform due to a major recessioncrash - physically holding the gold may have benefits.

You'd need a fair amount of 1oz blocks to properly diversify into gold (versus say a 200k+ property). Otherwise you're just playing on the side really.
 
1oz is the more common size and i would favour that over smaller sizes - you will also pay less of a premium.
Also consider holding PMGOLD on the ASX - it's a Perth Mint security.
 
Smaller bars are also less likely to have a tungsten core...

Keep in mind the perth mint for example will only buy back their own minted bars at reasonable prices and treat many other assayers the same as jewellery.
 
Like all investment regimes - research. Well done asking here.

Research - small allocations, secure & insured storage, buy/sell spread.

Gold is certainly a controversial investment - no yield, difficult storage, level of return (with inflation or above), manipulated market, paper vs real, exposure to currency fluctuations (good & bad)

To me its an insurance policy should the world economics collapse - and not 2008 collapse, worse. It is almost the opposite of a leveraged based investment ie property.

I view gold as a SANF - do you need it to sleep at night or not? The govt has indicated by its actions (world wide) that it will support banks. The question is, can they do it again or for something bigger? And does govt support work (look at Japan). If you think the answer is no, then gold is a good investment strategy. Property/shares have capital growth + yield so are a better return.

Gold provokes emotions, but you need to remove the emotion. The great leveler of gold as an investment vehicle - can you get 50-80% leverage on the bars you hold? 20-30%? If no, then our financial system doesn't think much of it.

There are good local dealers in Australia so stay local.
 
After reading Millionaire Teacher I wouldn't buy gold unless the world was caving in.

Interesting.....

There are some, with some real credibility for example Jim Rogers, who are saying just so.....

http://www.cnbc.com/id/101083671

Marc Faber

http://marcfabersblog.blogspot.com.au/

Peter Schiff

http://schiffblog.blogspot.com.au/

Eric Sprott

http://ericsprott.blogspot.com.au/

Robert Kiyosaki writes about it....

Some of these names are billionaires. Would you buy good quality gold miners with no debt and high quality assets at a 80% to 90% discount?
 
lol, no idea. There's always been D&Gers, I just find it hard what to believe or ignore. In the meantime, while I'm making up my mind, it's life, business and investing as per usual.
 
lol, no idea. There's always been D&Gers, I just find it hard what to believe or ignore. In the meantime, while I'm making up my mind, it's life, business and investing as per usual.

It's a pretty fair comment mate, it is difficult to establish just what is going on sometimes both regionally and globally that's for sure.
 
For the first time in history there is no fiat currency backed by gold and they are all being printed into oblivion. It's hard to see how it could all end well.

When looking at the fluctuating price of gold, it's not the gold that changes value, rather the currency that you are measuring it against.

I saw an interesting series on youtube called "The hidden secrets of money" It's worth a look if only to see another side that the mainstream media will not give you, then you can make an informed decision as to whether you would want to hold any precious metals.

..just a thought...
 
If the earth was subject to some kind of cataclysmic event resulting in the breakdown of society, I'd want physical gold under my bed. Then I can at least trade it for lots of land when we're reduced to a dark age society!
 
The trouble with buying physical gold (or any precious metals for that matter) is they don't produce any income. You might get some capital growth ... or you might not.
(Been there done that – as a 20 year old I was buying physical silver by the Kg!)
 
For the first time in history there is no fiat currency backed by gold and they are all being printed into oblivion. It's hard to see how it could all end well.

When looking at the fluctuating price of gold, it's not the gold that changes value, rather the currency that you are measuring it against.

Yet, for the past 2 years everyone has been printing money and still the price of Gold hasn't gone anywhere. Infact down 30% from it's peak. Every bit of logic used to justify the increase in price of Gold has happened over the past 2 years (aka money printing, uncertaintly in form of US nearly defaulting on it's debts, Euro collapse etc)

Warren Buffett has said this in the past and I fully agree with him. Over the long term a productive asset (stocks, farm land) will grow at a much higher rate than a non productive asset like Gold.

History has proven this to be true and I am fairly confident history is not about to change.

Cheers,
Oracle.
 
I would not have all my investments in precious metals, but I feel better having some under the bed. Warren Buffett's continued enthusiasm for American stocks is directly related to how much he has invested in them.

The US market has had a great year compared to gold, I just can't see what's holding it up there? With the DOW over 15,000 it looks as though the US economy is booming, but what is the real story?
 
I would not have all my investments in precious metals, but I feel better having some under the bed. Warren Buffett's continued enthusiasm for American stocks is directly related to how much he has invested in them.

The US market has had a great year compared to gold, I just can't see what's holding it up there? With the DOW over 15,000 it looks as though the US economy is booming, but what is the real story?

Buffett puts his money where his mouth is. Buffett is a long term investor. He doesn't care about how US stocks will do over the next 12-24months. His investment timeframe is decades. So US stocks doing well over the last 12 months would have not influenced his decision to buy one iota.

What's holding up stocks...you can say it's the Fed money printing. That may be contributing factor. But sooner or later fundamentals kick in...which means company profits in particular EPS (Earning per share) will determine the price of the stock which has direct impact on the index depending on the stocks market cap.

Another factor that has huge impact on stock prices is P/E (Price to Earnings) ratio. This is mostly determined by various factors including market sentiment, growth outlook and current interest rate environment. All these factors are currently working in favour of higher stock prices.

This is how it's always been..sure you have market shoot up or down much more than you would expect but it always does correct itself in the long run because of the primary factors determining index value are the fundamentals I mentioned above.

Cheers,
Oracle.
 
Buffett puts his money where his mouth is. Buffett is a long term investor. He doesn't care about how US stocks will do over the next 12-24months. His investment timeframe is decades. So US stocks doing well over the last 12 months would have not influenced his decision to buy one iota.

What's holding up stocks...you can say it's the Fed money printing. That may be contributing factor. But sooner or later fundamentals kick in...which means company profits in particular EPS (Earning per share) will determine the price of the stock which has direct impact on the index depending on the stocks market cap.

Another factor that has huge impact on stock prices is P/E (Price to Earnings) ratio. This is mostly determined by various factors including market sentiment, growth outlook and current interest rate environment. All these factors are currently working in favour of higher stock prices.

This is how it's always been..sure you have market shoot up or down much more than you would expect but it always does correct itself in the long run because of the primary factors determining index value are the fundamentals I mentioned above.

Cheers,
Oracle.

You bring up some good points Oracle and how can you argue with the success of the likes of Warren Buffet. Buffet believes in what and where he puts his money and has his own unique investing style.

However, there have been some great investors such as Jim Rogers, Marc Faber, George Soros and Eric Sprott who have made absolute fortunes out of commodities including gold.

Like any investment it's about knowing where to place your money. You mention history.... I agree it's hard to argue with history. Well, I'd suggest that NO fiat currency has ever survived the process of quantitative easing by way of printing more money http://dailyreckoning.com/fiat-currency/

For the last 5000 people have been using gold and silver as currency amongst over things.

I think you are right the fundamentals have separated from the movement in the markets at the moment and the markets particularly the US markets are solely responding to the fed decision whether or not to taper and I'd suggest more speculation is coming into the market. Gold stocks are floundering in some part because speculative money is flowing into the markets as the fed announces a no taper.

We witnessed the markets spasm in September when the fed had a clear opportunity to taper however, in a surprise decision (to some at least) they didn't and markets rebounded strongly.

I think there is a good argument to be extremely careful in this environment. Sure, some investors have a long term view but if you enter this toppy market and it corrects, which it's due for, then you can really find yourself behind. Sure, Buffet supports what's going on at the moments, why wouldn't he his stocks and wealth is growing exponentially as the hot money flows into the market.

I'm not necessarily suggest buying PM, however it would be wise to hold some PM, but there are investments in the PM space that give you huge leverage to the PM price.

All the shrillers are out crying it's the end of gold, coal, and uranium including JP Morgan and the rest of those thieves.

http://www.businessweek.com/article...-settlement-jamie-dimon-is-a-colossus-no-more

It must be a buy then. It wouldn't surprise me if they (Big banks & funds) push down gold and continue short the market. In the early morning hours in thin trade dumping gold onto the market in the final push down shaking out the last of the weak holders and then flipping and going long!
 
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