Best way to invest 10K to 20K in gold or silver? (fund, cash)

[unseengundam]

I am wondering what would be best method to invest between $10K to $20k into gold and/or silver? How easy is it to get about doing so?

Thanks in advance for any info!

[chet everett]

First this is NOT an investment. It is SPECULATION, and probably very poorly thought out as most sane people believe nut job types have drive gold to a ridiculously unsustainable bubble. Investing is a term that implies there is some reasonable expectation of gain / return of value / stability.

Second gold and silver are technically commodities and like most commodities you have a wide variety of purchase options available. Should you be crazy enough to actually to buy gold coins or bullion at current spot market price you are looking at a very small amount of gold -- barely over a half a pound. You could carry that in your pants pocket...

[killer2021]

Originally Posted by chet everett

First this is NOT an investment. It is SPECULATION, and probably very poorly thought out as most sane people believe nut job types have drive gold to a ridiculously unsustainable bubble. Investing is a term that implies there is some reasonable expectation of gain / return of value / stability.

Second gold and silver are technically commodities and like most commodities you have a wide variety of purchase options available. Should you be crazy enough to actually to buy gold coins or bullion at current spot market price you are looking at a very small amount of gold -- barely over a half a pound. You could carry that in your pants pocket...

Well, lots of other investments are pure speculation as well. There is nothing wrong with speculation but you have to take it for what it is - gambling more or less.

Its good to have some pms just to be on the safe side. I'm up about 300% on my silver investments so its worked pretty good for me.

Personally I would suggest taking physical 1oz coins or bars. Just buy them off apmex.com

[SVTRay]

I've done really well on Gold and Silver over the years and I'm not sure I would pull the trigger on this one. When I started buying metals, Gold was 200+ and Silver around 4.50 an ounce. If I was to buy again, I would need Silver down around 1500-25.00 and Gold around 500.00-600.00 minimum. And even then I'm not sure I would go more than 5k...maybe 10k.

[CouponJack]

The idea is to buy LOW and sell HIGH.....

Take a look at the chart over the past 10 years at gold and let me know what you think....

[mathjak107]

the idea is to have a plan and stick to it. without a plan buying any one asset class of anything is a speculation.

the important thing is to have a plan for rebalancing your portfolio and its holdings .
picture this, if you bought gold at the peak back in the 1980's and bought at the highest moment possible ,that by just sticking to rebalancing your portfolio each year that today your annual average return on the gold cagr would have beaten doing the same thing on the same day with the s&p500.

an equal stake in gold, an index fund,long term treasuries and cash rebalnced once a year would have the gold return today at 9.9% vs the s&p at 9.5% and you bought at the highest point possible back then.

its all about the long term plan ,not the asset class.

[Troof]

Originally Posted by CouponJack

The idea is to buy LOW and sell HIGH.....

Take a look at the chart over the past 10 years at gold and let me know what you think....

Same rhetoric was being thrown about when gold was blowing through $1200 and the crazies were calling for $1600 gold in the near future...

(Though I agree, it's a speculative play)

[CouponJack]

Originally Posted by mathjak107

the idea is to have a plan and stick to it. without a plan buying any one asset class of anything is a speculation.

the important thing is to have a plan for rebalancing your portfolio and its holdings .
picture this, if you bought gold at the peak back in the 1980's and bought at the highest moment possible ,that by just sticking to rebalancing your portfolio each year that today your annual average return on the gold cagr would have beaten doing the same thing on the same day with the s&p500.

an equal stake in gold, an index fund,long term treasuries and cash rebalnced once a year would have the gold return today at 9.9% vs the s&p at 9.5% and you bought at the highest point possible back then.

its all about the long term plan ,not the asset class.

No, I agree 100%....My point was about the speculation....(it was poorly worded on my part)

[mortimer]

Originally Posted by chet everett

Second gold and silver are technically commodities ...

I don't think gold can be considered a commodity.

Only a small fraction of the gold produced each year is actually consumed
as electronics, etc. It has some important uses, but compared to steel
or copper, it has very few uses.

The price of gold is based on what people are willing to pay for it - like the dollar.

Unike the dollar, gold cannot be created out of thin air.

Originally Posted by chet everett

gold coins or bullion at current spot market price you are
looking at a very small amount of gold -- barely over a
half a pound. You could carry that in your pants pocket...

That is one reason that people find gold to be desireable.
It is portable wealth. It's not as portable as diamonds, but more portable than silver.

A cube of gold 4" on a side is worth $1 million and weighs 43 lbs.

A lot of the arguments against gold are the same arguments against the
value of fine art, gems, other collectables. Those things have absolutely
NO intrinsic value, but a diamond that can fit under the cap of a soda
bottle might be worth more than $1 million. Why? It's a useless rock.

Sorry, but gold is going to be valuable and will continue to appear to go
up in "value" as long as dollars/euro are being created out of thin air.
In reality, gold is keeping its value and dollars/euro are declining in value.
We are currently in a period of "catch-up" where gold was previously held
down in value by central bank selling. That has stopped. Now they're buying.

What gold has going for it as an "investment" is that it has been "money"
for longer than any nation on earth - including China - has been around.

Originally Posted by mathjak107

... buying any one asset class of anything is a speculation ...

Yup. There are no sure things.

I like gold a lot, but it doesn't pay any interest or a dividend.

OnTheOriginalTopic: Gold mining companies DO pay a dividend. It's not usually
significant. Another way to invest in gold is to buy companies that produce it.

If you have decided to spend $10k or whatever on gold, buy some coins and buy
some stock. Don't do it all at once and don't assume that if you don't buy now,
the price will run away from you and you won't be able to get it. Nothing goes
up in a straight line all the time.

Note that if you chicken out, you can sell your stock with the click of a button.
Going to sell your coins takes more time and effort.

[HappyNewMe]

Originally Posted by mortimer

... Note that if you chicken out, you can sell your stock with the click of a button.
Going to sell your coins takes more time and effort.

I have always (lazily) wondered about that: how do people convert those coins, bullions, etc. back into money when the time comes?

You can't just walked into a bank and sell them back, can you?
If no one will buy (like, banks are closed, people have no money or are more interested in food ), one may starve with a chank of gold under their pillow?