Investing in gold?

[Copperst]

What if I want to find a solid investment for part of my savings? Such as... Gold... or Platinum..

I believe these to be good things to invest in for long term security, but I'd like to know:

1.) Is it better to buy gold outright or own stock of gold backed companies?
2.) If so, does anyone have favorite gold backed companies?

[Cryperhycle]

Gold is not really what I consider an investment. It is a store of value and protection against inflation. It doesn't pay dividends, it just maintains your buying power. When currency values decrease, gold increases because it holds its intrinsic value.

So with that said, it really depends on your motivation behind gold. Do you want to make money? Do you want to protect yourself from the inevitable destruction of the dollar? Do you want to be able to pay rent in Bangkok when your dollars no longer have value?

To make money, you can buy gold miners or royalty companies or just sell options. I regularly sell put options on GLD and GDX.

If you want to hedge against inflation or pay rent in your new Bangkok hut, buy coins like the Kruggerand or Panda. Stick with the common coins in common sizes as they are recognized around the world. If you get into collectible coins, you will need to understand grading and rarity which complicates valuation.

[CurtisSt]

I hear people saying this all the time too. To me, gold is not an investment. I don't know but I have mixed feelings about gold. On one hand, if gold goes up to $2000 and I have 10 lbs of it, I should be happy. Right???

But if gold goes up to $2000, it really means that the rest of my money that is not in gold has gone down. So unless I had 100% in gold, did I really make money or did I just lose less money than everyone else.

Most of us do not feel the effects of gold pricing. It's because we spend $10 at Target to buy the same product whether gold goes up or down. When gold goes up and the dollar goes down, my online stores benefit because international buyers view my products as cheap.

[admin]

My intention is a safe keeping to accumulate savings. This would only be a portion of my investment dollars, but my perception is that if I invest in gold or at least "valuable materials" I would be protected in case all hell breaks loose.

More along the lines of when people stop recognizing the dollar as currency, I'd be able to live and support a family.