Some gold and foreign market questions

Glelas

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Joined
Oct 16, 2009
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I am a rookie when it comes to gold and foreign markets but I would like to put some of my money and some of my children's money in gold and perhaps Chinese markets.

For now, I will keep it to just gold questions, but if I buy some bullion, where is the best place to store it? In a safe? a bank? are there services that store it for you and you actually never see the gold?

Also, what are some recommended sites to buy gold and is there any particular type of bullion that is more sought after than others?

I have a ton of other questions, but I will stop here for now.
 
Welcome to the forums.

First, you want to have some phisical gold and silver with you. That means, hidden in your house somewhere, or in the garden, ... just in case "TSHTF" (the shit hits the fan). Coins usually have more premium than bars, but you might want to have some, because people recognize them and they are more trusted. Its harder to falsify a coin than a bar. Dont go for numismatic coins, just normal bullion coins. Unless you really know about numismatics you will overpay.

Secondly, if you want to have gold and silver held by a third party be very carefull. Some companies are just selling paper-gold, meaning they dont have the real phisical gold backing the paper they sell. If you want companies that really have the gold they sell I would look into Swiss companies. Forget about GLD, and others. Those are just ETF's that track the price of gold and are good for trading but not for long time or secure investment.

And for chinese markets I am sure someone here will give you a more complete advise, but Peter Schiff's compnay, Europacific, its a good option.
 
in terms of where to store gold... i think you should store your gold in a variety of places. you can buy a fireproof at walmart for $20 which is a good place to keep your gold if you're keeping it at your house. so keep some gold in your house... but obviously don't tell anyone that you're doing this. and you can keep your physical gold in your house in a few differnet places... like maybe bury some in the backyard, put some in your cloathing drawers, and maybe put some under the sink... or where ever. also, you can keep some in a safety depsoit box at a bank. and you can keep some gold offshore using services like the Perth Mint in Australia or goldmoney.com in London and/or Switzerland. so there's lots of places to keep your gold... and depending on how much gold you own, you should try to keep it in a variety of places. first and foremost, you should have the physical metal in your possession at your home hidden in a good spot... and then secondly, keep some gold offshore so that your gold will be there waiting for you if you ever need it.

in terms of good sites to buy gold from...

http://www.apmex.com/

that's the main site for people buying gold online. they deliver the physical metal to your house.

or order from these guys if you want the old american gold coins that has numismatic value

http://www.allamericangold.com/

if you're just getting into the gold and silver markets, i would just stick with modern issue gold coins from ampex.

just buy 1oz gold coins like Canaidan Maple Leafs, American Eagles, South Aferican krugerrands, etc. you can order any of these from ampex.

so in terms of buying gold to keep in your possession, buying those 1oz gold coins from ampex is probably the best way to go. and if you want to keep some gold offshore, then the Perth Mint (sold through EuroPacific Capital at europac.net) and goldmoney.com are probably the best ways to keep your gold offshore.

another option for gold and silver is the Central Fund of Canada (CEF) which is easy to buy because it is just the same as buying a stock... so this is probably the third best option for owning gold.

so i think the best way to own gold is to have it in your physical possesion at your house... and you can order this gold though websites like ampex.... and the next best option is to own gold that is stored offshore like the Perth Mint and goldmoney.com... and i think the third best option is to own gold with stocks like the Central Fund of Canada (ticker symbol CEF). i think you should stay clear of the etfs like GLD.

and obviously investing in China is probably a good long term investment strategy... but of course you have to realize that there is some risk involved, and you could see stocks in China go way down for a while... but as long as you're in it for the long haul and you're okay with the volitility... then stocks in China should do well. obviously some stocks in China will do better than others... but if i had the option of keeping money in the US stock market or the China stock market, i would take the China stock market anyday.

i get the impression that you're taking the Peter Schiff strategy (like most of us on this forum are taking)... in which case, just call up a europac broker and talk to them about this stuff... and they'll talk to you all about the new china mutual fund and the perth mint program and they'll hook you up with all your investment needs.

you should realize that investing in precious metals and foreign stocks can risky (though i think it's way more risky in the long run to just hold cash)... so if you decide to go ahead with this investment strategy, you need to be confident in what you're doing and not get scared out if prices fall. as long as you understand fundamentally what you are doing, and you're prepared to ride out any downswings (no matter how painful)... then i think this is a good long term strategy
 
You could goto a number of different sites: apmex.com being the best and just order off of there. I bought some gold/silver coins from apmex. The issue is shipping. If you going to make a fairly large purchase you want to purchase from this site. You save on shipping...but if your going to be make smaller purchases I would suggest ebay.
Best of luck
 
don't over look your local dealer. there will always be a coin shop near your location. you might pay a bit more in premiums, but in my experience it's not bad. when gold was ~$750/oz I bought some at a ~$30/oz premium so ~$780/oz. I recently bought some more at $1105/oz. spot is $1050 right now.

It's also good to get to know the local dealer, talk to them, ask questions, etc. They have a lot of knowledge of the gold/silver markets as it is their livelihood. From my experience, they love to dispense their knowledge to humble noob.

ETA: oh and you don't have to wait for your gold to be shipped. you give them FRN's, they give you gold. it's a great feeling. also, if you buy a couple ounces at a time, they'll usually give you a lower premium.
 
Thanks for the awesome advice, it was exactly what I was looking for. I have asked these questions on other, similar sites and did not get the thorough yet simplified answers I got here.

I like it here.
 
An easy way to play foreign markets, is PM.. Let them do the money changing for you in the form of a dividend...
 
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