Whats the best way to invest in commodities in our current scenario? Buying real gold in US or buying something like ETFs? Does it make a difference if we buy gold here or in india?
1. Buy physical gold either online or physically from a Bullion
2. Buy gold ETFs or a closed-end fund. Two good Gold ETFs:- GLD and IAU
3. Buy gold stocks. Gold stocks have the advantage that they may provide more leverage to a rising gold price than gold itself, but also higher risks. Mining companies such as ABX,RGLD,FCX will provide higher returns.
Another option is to trade it on the futures market... If you decide to exercise the option then as soon as the gold is mined it'll be delivered to your door step!!! :))
Gold is worst place to invest because precious metals do not pay any type of dividends. Increase in the value is the only way earn out of it. The price of gold has remained the almost the same for a long time. Liquidity is the main problem… you cannot use gold to take loan or pay for anything else… Therefore, I won’t recommend going even near to gold…
as far as i know, gold shot up recently from somewhere near 650s to 720s...isnt it? infact over last few years, if people invested in gold, i think gold went up like anything! i think there were some downtrends in gold earlier this year though..
Traditionally gold was considered a good investment as an alternate to currency (esp. 20-40 years ago) because of lack of stability.
But as of date other then reasons above, I would say its not worth doing. Some people make money by trading gold across the countries because of varying prices in different countries.
Other then that, prices of gold slashes down when any economy release gold.
I agree that traditionally Gold is not a good investment, specially as a long term investments(10-20 years). But, the caveat is that you can use Gold as a easy hedge to move across the markets/economies in troubled times such as what we have today in US. You have other alternative means to hedge as well, such as investing in Euro etc, but with global markets intertwined and closely related its not possible to completely shield your investement, other than with Gold or any other commodity valued across the globe.
So, Gold is a good investment for short term profit cyclical profit, you just need to know or speculate and get in at the low end of the cycle. I still believe that we are still in the middle of the cycle, and Gold will rally higher before returing to normal levels of $600-650
i think gold went up last year..n reached its peak in may..i remember coz my roomie bought the gold at its peak n then it went down..in last 20 yrs, gold went up quite a lot..now gold is up quite a bit than where it was a month or so back...so am not sure how much sense it makes to buy it now...although weakening dollar might help it still go up..
8 comments:
You can buy/invest Gold in the following ways:
1. Buy physical gold either online or physically from a Bullion
2. Buy gold ETFs or a closed-end fund. Two good Gold ETFs:- GLD and IAU
3. Buy gold stocks. Gold stocks have the advantage that they may provide more leverage to a rising gold price than gold itself, but also higher risks. Mining companies such as ABX,RGLD,FCX will provide higher returns.
Another option is to trade it on the futures market... If you decide to exercise the option then as soon as the gold is mined it'll be delivered to your door step!!! :))
Gold is worst place to invest because precious metals do not pay any type of dividends.
Increase in the value is the only way earn out of it. The price of gold has remained the almost the same for a long time.
Liquidity is the main problem… you cannot use gold to take loan or pay for anything else…
Therefore, I won’t recommend going even near to gold…
as far as i know, gold shot up recently from somewhere near 650s to 720s...isnt it? infact over last few years, if people invested in gold, i think gold went up like anything! i think there were some downtrends in gold earlier this year though..
I see your point.
Traditionally gold was considered a good investment as an alternate to currency (esp. 20-40 years ago) because of lack of stability.
But as of date other then reasons above, I would say its not worth doing. Some people make money by trading gold across the countries because of varying prices in different countries.
Other then that, prices of gold slashes down when any economy release gold.
I won't recommend. It’s a last thing to do…
I agree that traditionally Gold is not a good investment, specially as a long term investments(10-20 years). But, the caveat is that you can use Gold as a easy hedge to move across the markets/economies in troubled times such as what we have today in US. You have other alternative means to hedge as well, such as investing in Euro etc, but with global markets intertwined and closely related its not possible to completely shield your investement, other than with Gold or any other commodity valued across the globe.
So, Gold is a good investment for short term profit cyclical profit, you just need to know or speculate and get in at the low end of the cycle. I still believe that we are still in the middle of the cycle, and Gold will rally higher before returing to normal levels of $600-650
... ahmmmm, making me curious. I will pull up gold and review its trend in past 20 years....
i think gold went up last year..n reached its peak in may..i remember coz my roomie bought the gold at its peak n then it went down..in last 20 yrs, gold went up quite a lot..now gold is up quite a bit than where it was a month or so back...so am not sure how much sense it makes to buy it now...although weakening dollar might help it still go up..
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