New to buying gold stocks

[limerickman]

Hey,

I have never bought stocks before, and plan on buying some gold stocks. Can someone here recommend a good online brokerage for buying stocks. Which are the safest and most reputable. I was thinking about starting off with TGLDX. Because its a fund, is it possible to just buy with a online brokerage account?

 

[tsai3904]

Can someone here recommend a good online brokerage for buying stocks. Which are the safest and most reputable.

There's a lot of safe online brokerages:
Fidelity, ETrade, Scottrade, TDAmeritrade, Zecco, CharlesSchwab, etc.

When considering brokerages, you should research how much it costs per trade (commissions will range from $5 to $10 per trade), if there are minimum dollar requirements to open account, fees associated with maintaining and closing account, etc.

I was thinking about starting off with TGLDX. Because its a fund, is it possible to just buy with a online brokerage account?

Yes, you can buy that fund through any online brokerage.

I have never bought stocks before, and plan on buying some gold stocks.

You have a couple options when investing in gold. You can buy gold or gold mining companies. The fund you mentioned above mainly invests in gold mining companies, which carry risks (management, operational, financial, etc) not associated with investing in gold only.

If you compare GLD, which is a fund that invests in gold only, to TGLDX over the last year, GLD has gained 9.8% while TGLDX has lost 23.5%.

You need to understand that gold mining companies do not always move in a 1 to 1 correlation with gold.

 

[driller80545]

Where can I buy gold and actually get gold?

 

[tsai3904]

Where can I buy gold and actually get gold?

Local coin shops or online (APMEX, Provident Metals, Golden Eagle Coin, etc.)

 

[driller80545]

Local coin shops or online (APMEX, Provident Metals, Golden Eagle Coin, etc.)

Will these guys ship you raw gold? Does it have an insured assay? I know that I can look it up myself, but I am easily conned.

 

[tsai3904]

They ship you what you buy and depending on what you buy, it may come with certification.

 

[driller80545]

They ship you what you buy and depending on what you buy, it may come with certification.

Gracias, amigo!

 

[limerickman]

I have all my savings in gold and silver, 80% in silver. I know it a risk because silver is volatile, but i have done the research and i am confident in silver over the long term. I think i should diversify into gold stocks at this stage. Is this a very risky portfolio? thoughts.....

I'm assuming that 20% of my portfolio should be in miners, i knows its a risk but funds like TGLDX give a diversification because of the amount of miners in it.

Thanks for all the advice.

 

[enoch150]

"Diversifying" from gold and silver into gold and silver miners is not diversifying. It's just a different bet on the same thing. And it is very risky.

Diversification in the stock market would be more like: an oil company, an insurance company, a chemical company, a tech company, a cigarette company... You could then diversify again by picking a mix of big, stable companies that pay dividends and do business globally, and small rapidly growing companies. And to get even more diversified you'd have to go outside of the stock market and get some bonds and real estate.

 

[Seraphim]

Financial markets are a sham right now.

If possible, find a local mine (within your State for example) and speak to the owner directly. Purchase stock and aquire the physical stock ownership papers.

I do not suggest plugging your money into the hands of the financial service sector. They are ALL minions to the big dogs (JPM, Goldman Sachs, BoA)...Need an example? MF GLOBAL.


You are better off investing in a local farmer then mines in other countries, or through the US financial sector.

Keep building the physical stack, invest in wholesome food production and if you want stock in a mine - make sure you can drive there and have the physical stock certificates and know the mines owner.

 

[limerickman]

Okay I get your point but I'm a big believer in lots of inflation coming down the road and I want to make as much money as I can (or protect my wealth as some would say). I don't like stocks in general, what are my others options? (given I'm a big fan of the austrian school)

 

[Seraphim]

Was this directed at me?

Okay I get your point but I'm a big believer in lots of inflation coming down the road and I want to make as much money as I can (or protect my wealth as some would say). I don't like stocks in general, what are my others options? (given I'm a big fan of the austrian school)

 

[limerickman]

No it was directed at enoch150, i hear you stocks are risky thats why i ask the question i want to diversity my current pro-folio from 80% silver and 20% gold, what do you recommend?

 

[Seraphim]

My point was not that stocks are risky (although they can be)...my point was that the political environment has descended into full blown fascism.

In my prior post I gave you my diversication suggestion. FOOD PRODUCTION.

You are worried about inflation and you already have a nice stack of PM (Strong capital)...Focus on investing in the production of life sustaining NECESSITIES.

First food, second energy.

No it was directed at enoch150, i hear you stocks are risky thats why i ask the question i want to diversity my current pro-folio from 80% silver and 20% gold, what do you recommend?

 

[enoch150]

If you believe a hyperinflation and a complete currency collapse are coming, then the goal is to maintain your purchasing power after the crisis is over. Many things will work. Cash and bonds will not. Most companies won't go out of business and that means their stocks will still exist. Real estate will still exist. Gold will still exist. Cars will still exist. You want things which will still be valued by people after the collapse and when a new currency is created. Things may be valued differently relative to other things, but the goal is to preserve at least some wealth during a crisis that big, not make it.

 

[cubical]

if you are buying only a couple of miners, stick with the streaming/royalty companies. they will out preform as they have little to no production cost increases like you see with other miners right now. slw is insanely cheap right now if you think silver has any upside from here. fnv, sndxf.pk and rgld are others to consider. sttyf.pk is a little gem as well, but it is not a pm play, but a general commodity play.

one silver miner i do like at these prices is ssri.

 

[RickyJ]

if you are buying only a couple of miners, stick with the streaming/royalty companies. they will out preform as they have little to no production cost increases like you see with other miners right now. slw is insanely cheap right now if you think silver has any upside from here. fnv, sndxf.pk and rgld are others to consider. sttyf.pk is a little gem as well, but it is not a pm play, but a general commodity play.

one silver miner i do like at these prices is ssri.

I know you are busy, but if can give me any thoughts on AUMN I would appreciate it.

 

[cubical]

I know you are busy, but if can give me any thoughts on AUMN I would appreciate it.

Sorry, I don't know much about individual miners. I just know as a whole, costs have been eating away at profits, as can be seen by their lack of movement with gold moving much much higher. llepard would be the guy to ask, but I don't know if he comes around much anymore. The only reason I like SSRI is because of their massive reserves. They have over 1 billion ounces of silver alone in the ground with a market cap of 1.1 billion, but it will take time before they are in full time production mode. I think they are a takeover candidate.

 

[Jordan]

Railroads, waste management, health care - some industries that will always have customers, no matter how bad things get. Buying gold and silver producers is not diversifying at all, and if anything, it's just leveraging.

 

[Liberty74]

I would buy real gold, not stocks. Silver is another option.

Local coin shops usually deal with both. You can get collector items as well. Someone was selling a Ron Paul silver piece on Alex Jones show plus mises.org sells two really nice pieces.