Buying Gold

I am one who believes that the recent downturn in our economy is far from over. I believe that all of the bailouts, including future obligations to Medicare and Social Security will basically bankrupt the government and severely de-value the dollar. If you don't agree with me, put that aside, and let's just pretend that will take place. Many "experts" believe the best way to protect yourself in such an environment is to purchase gold. My question is: How would one properly do that? If you purchase gold shares through Scottrade, for example, your funds are only as good as the financials of Scottrade. If they go under, your money is not insured or guaranteed. The only way I could see it is if you went to the U.S. Mint and plunked down $900 or so and walked out with an ounce of gold that you could hold in your hands. Does anyone have any experience buying gold and how did you go about doing it?
 
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 Originally Posted By: ryansride2017
My question is: How would one properly do that? If you purchase gold shares through Scottrade, for example, your funds are only as good as the financials of Scottrade. If they go under, your money is not insured or guaranteed. The only way I could see it is if you went to the U.S. Mint and plunked down $900 or so and walked out with an ounce of gold that you could hold in your hands. Does anyone have any experience buying gold and how did you go about doing it?
Actually not true. If Scottrade goes belly up, you'll still own your shares. You can buy gold locally if you look around. Spot close on Friday was actually over $950. I made a hefty return on all the folks with your same thought. Not that I think you are wrong, but it's good take the money in dollars every so often. I got in around $800 (a couple times)
 
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 Originally Posted By: Pablo
 Originally Posted By: ryansride2017
My question is: How would one properly do that? If you purchase gold shares through Scottrade, for example, your funds are only as good as the financials of Scottrade. If they go under, your money is not insured or guaranteed. The only way I could see it is if you went to the U.S. Mint and plunked down $900 or so and walked out with an ounce of gold that you could hold in your hands. Does anyone have any experience buying gold and how did you go about doing it?
Actually not true. If Scottrade goes belly up, you'll still own your shares. You can buy gold locally if you look around. Spot close on Friday was actually over $950. I made a hefty return on all the folks with your same thought. Not that I think you are wrong, but it's good take the money in dollars every so often. I got in around $800 (a couple times)
Your hearing all this "BUY GOLD NOW" stuff because Gold is at the highest it has ever been. Every smart person that got gold years ago is selling it now and making BIG profit. Your about 4 years late. Save your money. If, like you said the US government was to fall and go under, making the US dollar worthless. GOLD is the last thing you want. Your going to want a @$$ load of guns and a @$$ load of ammo. Thats going to A) protect you and yours and B) be worth a heck of a lot more than gold.
 

ryansride2017

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 Originally Posted By: Pablo
 Originally Posted By: ryansride2017
My question is: How would one properly do that? If you purchase gold shares through Scottrade, for example, your funds are only as good as the financials of Scottrade. If they go under, your money is not insured or guaranteed. The only way I could see it is if you went to the U.S. Mint and plunked down $900 or so and walked out with an ounce of gold that you could hold in your hands. Does anyone have any experience buying gold and how did you go about doing it?
Actually not true. If Scottrade goes belly up, you'll still own your shares. You can buy gold locally if you look around. Spot close on Friday was actually over $950. I made a hefty return on all the folks with your same thought. Not that I think you are wrong, but it's good take the money in dollars every so often. I got in around $800 (a couple times)
A few questions. Since your money is not FDIC insured, and we will continue to use Scottrade as the example, would I only lose uninvested money (money in my Scottrade account that is not invested in stocks or bonds) in my account if they go belly up? You refer to buying locally....what type of establishment is this? Are you buying shares (and if so, is it a certain ticker symbol) or are you actually buying/selling physical gold in the transaction? Thanks for sharing your experiences.
 
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Are you talking about an account like a money market with scottrade? is the account specifically scottrade? When you see adds to buy gold that means it is a terrible time to buy gold. Think about it, if it were a good time to buy why are they selling?
 
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If you have shares they exist with or without Scottrade. Now if your cash is in some type of Scottrade money account, sure you are at some risk as all money market accounts are. Check the phone book. Coin dealers. Gold traders. They exist at a premium, naturally. I trade long: GLD, IAU, DGP, FSAGX (30 day min hold), etc Short: DGZ, DZZ
 

JHZR2

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Look for American Eagles and Canadian Maple leafs for 6% over gold spot, if you buy cash. Krugerrands are not politically correct, and can be had for a bit less. Buy cash, and don't buy half, quarter or tenth eagles, the margin is too high. Americana Coin in East Rutherford, NJ is a good dealer, whom I have had significant experience with in the past. It is more fun to buy $20 gold pieces, real "eagles", from the 1850s-1930s. The classic "liberty head" has a number of varieties from the late 1800s and early 1900s that dont sell for a very large numismatic premium, and are kind of fun to hold.
 
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Trouble with buying gold, or coins for that matter, is you pay a fee/commission when you buy, and pay a fee/commission when you sell again. When gold is high, stay away. Kugerrands and Canadian Maple Leafs might be Ok, consider buying Maple Leafs in Canada. I have a few shares of a gold fund, it's basically stayed within a small range; not really taking off like I'd hoped. I bought that some time ago (two years?).
 
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 Originally Posted By: rg200amp
Your hearing all this "BUY GOLD NOW" stuff because Gold is at the highest it has ever been. Every smart person that got gold years ago is selling it now and making BIG profit. Your about 4 years late. Save your money. If, like you said the US government was to fall and go under, making the US dollar worthless. GOLD is the last thing you want. Your going to want a @$$ load of guns and a @$$ load of ammo. Thats going to A) protect you and yours and B) be worth a heck of a lot more than gold.
Good points. The gold is a good investment if it goes up some more, but if things get bad enough your gold will be liquidated quickly by the first guy who has a gun. Anyway, for gold I prefer the Canada Maple Leaf coin because it is 100% gold and looks good vs the American Eagle which has some copper added for strength, which IMO destroys the true luster of gold. Regardless, you do get a full ounce of gold in either the Maple Leaf or the Eagle.
 
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 Originally Posted By: JHZR2
Krugerrands are not politically correct, and can be had for a bit less.
how so, not politically correct? 1 krugerrand contains exactly 1 oz fine gold but at a lesser concentration so the coin is more hardwearing and slightly heavier than 1oz. i fail to see how it would be "quite a bit less" if it had the same gold content.
 
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The politically incorrect stigma refers to South African products produced when the country was under aparteid (10 years ago?). I can't imagine any reason why any South African products wouldn't be politically correct now.
 
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i don't see why it would still be politically incorrect. it was 15 years, and not much in terms of how the gold is produced have changed since then. the poor still mine it for the rich...
 

JHZR2

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 Originally Posted By: rg200amp
Your hearing all this "BUY GOLD NOW" stuff because Gold is at the highest it has ever been. Every smart person that got gold years ago is selling it now and making BIG profit. Your about 4 years late.
While I agree on this (the best buys were late 1990s when everyone was scared that the central banks were selling off all their gold, and it was in the high $200 range. That said, without going P, things can't be done without printing lots of money, and the model of inducing massive inflation to pay debts seems to be the only way to move things along. I think that gold on dips into the $850-900 range is still a good buy for the forseeable future. At some point things will level down, and gold may well retrace to $300 or below! But I think that for now, it should be a reasonably good thing to own.
 

JHZR2

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 Originally Posted By: crinkles
 Originally Posted By: JHZR2
Krugerrands are not politically correct, and can be had for a bit less.
how so, not politically correct? 1 krugerrand contains exactly 1 oz fine gold but at a lesser concentration so the coin is more hardwearing and slightly heavier than 1oz. i fail to see how it would be "quite a bit less" if it had the same gold content.
I agree but look at the percentage over spot that they sell for vs. american eagles or canadian maple leafs. Old concepts remain. Don't ask me why... just look at the prices. Last time I looked on ebay, you could even see it there!
 
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Can't eat gold or shoot gold.Though some gold is good to have. I remember around 1981 gold was around $850.ish per oz then dropped to around $290.ish per oz . I am kinda in fear of buying gold now. The dollar seemed to buy more in 1980 than today.
 
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Remember the hoopla when the Dow hit 14,000? Not the brightest time to get in the market. I think gold is the same today. Buying high is not the best investment strategy!
 
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