Gold investing

This topic was created in the Miscellaneous forum by SeaLion on Friday, March 17, 2023 and has 13 replies.

This is a question for you financial people on here. Seeing as we are most likely headed for a recession soon I've been looking into what I can do to prepare. One thing I've come upon is investing in precious metals like gold and silver. So I'm looking into that and I'm thinking this is something where you buy it and get some kind of certificate for gold that is in a reserve but as I'm looking on these websites it looks like it is more buying gold coins or gold bars. Which, since I'm a coin collector, I have already been doing for years(more so in recent years). I've also only been buying real gold jewelery this past year, no costume jewelery.

I guess my question is, have I already been doing what these financial websites have been talking about or is there more to it like what I said with buying it from a lender and getting some kind of certificate that I have this gold in some bank somewhere? Or is it both? 🤔

@Undine

13 Years5,000+ Posts

Warren Buffett on gold:

Do not

Invest in nonproductive assets like

gold and cryptocurrencies

“If you owned all the gold in the world you could have

a cube that would be 67 or 68 feet on a side, and you

could get a ladder and you could climb up on top

of it, and you could say, I’m sitting on top of the world,

and think you’re king of the world.

“You could fondle it, you could polish it, you could do

all these things with it. Stare at it. But it isn’t going

to do anything…

“Anytime you buy an asset that can’t do anything,

produce anything, you’re simply betting on whether

somebody else will pay more for, again, an asset

that can’t do anything…

“I would bet on good-producing businesses to

outperform something that doesn’t do anything over

any period of time.”

— 2011 BERKSHIRE ANNUAL MEETING

@SeaLion

8 Years1,000+ Posts

Posted by Saturn_Returns
Personally, I would prefer to own the gold physically, rather than own some certification that could potentially be a scam.

After finding a legit dealer, the main issue would be storage. Not every home is safe to store such precious metals, and keeping it in a bank will probably incur an annual fee of some sort.

It's probably best to check how much of your bank savings are protected by the government (I think I read that it's $ 250,000 in the US - in the UK it's £85,000 per banking group).

Yeah, I definitely would rather have it physically.

@hydorah

13 Years10,000+ PostsPisces

invest in objects, not money.

Objects= (in decreasing order of importance) food, house, land, weapons, vehicles, access to water, hiring of people, creation of a company, etc...

Money has no value in itself and there's no way to store money than it can't all be lost in a way or another

Buy some gold if you want but gold is always a risk. Can be stolen, can be fake, plus you'll always get cheated of some value when you want to sell it.

I'd invest in bitcoin over gold (bitcoin, not other cryptos)

@SeaLion

8 Years1,000+ Posts

Posted by 1917191
I order gold / silver from JM Bullion for the convenience, but maybe too much above the spot price.

But in general, I stash money/ storage of values in different places like a squirrel. I think if I die no one will find where I hid everything. Some are stored on hard drives and I have the code so they are not accessible on the internet. Some are hidden somewhere in the house. Various accounts: 401k/IRA/ brokerage/money market accounts.

I definitely don't like when my bank notice I have excess cash sitting in there because they start sending you all the perks and membership upgrades. Feels like I'm being watched.

Lol. I'm like a squirrel too.

@Rimzy

3 Years

This is such a complicated topic to discuss lol.

How much time an energy do you have for this? Because what I have to say takes time to learn and discuss.

@SeaLion

8 Years1,000+ Posts

Posted by Rimzy
This is such a complicated topic to discuss lol.

How much time an energy do you have for this? Because what I have to say takes time to learn and discuss.

I wouldn't mind learning. Maybe start with the basics and if that seems to hard I'll let you know since I don't want to waist your time and energy either.

@BaeMaxx

4 Years

Buy gold stocks. Physical gold is hard to keep in the home. Weve been buying for the last 2 years as its considered a defensive asset. Yes, the price goes up and down but it doesn't crash like the stock market. Also, would suggest to diversify where you put your money. Invest in stocks, gold, etc. If you have disposable income, this is the best time to buy these things.

@SeaLion

8 Years1,000+ Posts

Posted by BaeMaxx
Buy gold stocks. Physical gold is hard to keep in the home. Weve been buying for the last 2 years as its considered a defensive asset. Yes, the price goes up and down but it doesn't crash like the stock market. Also, would suggest to diversify where you put your money. Invest in stocks, gold, etc. If you have disposable income, this is the best time to buy these things.

Yes, gold stocks. Thats what I meant in my OP but couldn't remember what they were called.

@BaeMaxx

4 Years

Posted by SeaLion

Posted by BaeMaxx
Buy gold stocks. Physical gold is hard to keep in the home. Weve been buying for the last 2 years as its considered a defensive asset. Yes, the price goes up and down but it doesn't crash like the stock market. Also, would suggest to diversify where you put your money. Invest in stocks, gold, etc. If you have disposable income, this is the best time to buy these things.

Yes, gold stocks. Thats what I meant in my OP but couldn't remember what they were called.

click to expand

Yeah. You won't get the physical gold there but a certificate saying you own this much gold. That's what we got. It's a good one. Here in Australia you get a serial number of sorts to confirm you are a gold stock owner. Pretty easy. On the contrary, I wouldn't advise crypto investing at the moment. Crypto is interesting. Don't get me wrong. But the way I see it, it's just another technology that can lose its value pretty soon. I'm the tech world and crypto companies have fired so many people not to mention, people leaving the space voluntarily as well. Your money can have a value of 20k right now and zero tomorrow. Why invest in such heavily volatile asset? I personally don't think so. And the price moves based on Elon Musk's tweet.

@hydorah

13 Years10,000+ PostsPisces

gold stock is someone handing you a paper written IOU.

It's pretty much the same as holding dollar banknotes lmao

@Rimzy

3 Years