Anyone here investing in gold stocks?

[slor]

If so, what investment firms are you using? TIA

[swag]

1. I don't, but at least two popular exchange traded funds track gold prices:

Tickers: GLD, IAU

[ret5hd]

2. correct, but those aren't actually gold stocks...

it might be what the OP is looking for though. But i would suggest that if a person wanted those, just buy the gold. Not many people know that through "short" trades, options, etc about 40 times the amount of gold there is in central banks is "owned". Sooner or later, there will come a reckoning, and i would just as soon hold the gold as a piece of paper saying i own the gold.

Gold stocks, however, are a different story. But i don't know enough about the companies to make an informed decision on them, so i stay away.

[Lefty48197]

5. Might want to consider investing in gold mines too

I've heard that the Chinese just allowed their citizens to start buying gold, and the government it putting more of it's money into gold, rather than dollars. Both actions will increase world demand for gold and gold mining.

[Greyhound]

30. Good move. If the feces contacts the air circulation device, I wouldn't

want to be holding a bunch of paper, either. Besides it so cool to hold, nothing else feels quite like it.
my rare coins have done even better than the gold itself and haven't seen the dramatic dips that make some so nervous.

[FormerDittoHead]

3. I would just buy into a sector fund... FSAGX

http://personal.fidelity.com/products/funds/mfl_frame.shtml?316390780

Fund Symbol FSAGX

I really don't see the point of trying to guess which gold company will do better than any other gold company, but if you'd like a starting point, I'd check out the top 10 holdings listed in the link above.

[Sammy Pepys]

4. I have a precious metals fund...

...in addition to my normal roster of stock and bond funds that make up my total portfolio. That's the best way to do it, I think.

[Mike03]

6. Mining Stocks

I owned shares of Anglogold Ashanti and Placer Dome until very recently and did well with Anglo. Right now I am on the sidelines but am eager to buy gold in some way other than mining stocks--perhaps the ETF. But more and more I have been thinking about acquiring physical gold. I just have so many questions that I have talked myself out of it.

Both gold and oil have given back some profits and I'm tempted to see this as a "buy on weakness" scenario.

[screembloodymurder]

23. NXG is an under valued Canadian gold stock listed on the AMEX

It's a $2 stock with a PE of 14. Everybody buy, buy, buy!!!!!!!!!!!!!!!!!!!!!!!


Did I mention they only have one mine?

[teryang]

28. Silver and base metals may be a better play at this point.

I'm bullish on gold but leery of purchasing at this point. This is purely subjective as gold probably will go up quite a bit in the future because of currency inflation.

I've been trying to get into silver wheaton (SLW) on a dip the last few days but it keeps going up. I'm going to buy it anyway.

For an investment the giant BHP may be a good long term investment, uranium, coal, energy. I think they have gold as well but not sure.

Look at Kitco.com and just follow it for a while, the news articles, the commentary, etc and get a feel for the commodity markets. Some analysts think copper is going to be huge.

Consider buying silver bullion. Transaction costs are high but the US silver eagle, never a good buy before is now becoming a value if you think silver prices are going up.

There was an article about layering investments in commodities recently on kitco that was great. A combination approach of buying bullion, investment stocks, speculative investments, and speculations. Bullion for emergencies, economic or otherwise, investments for the long term, riskier investments for return, speculations for quick profit if you can afford it and your foundation is in place. Of course this is written from the point of view of this sector and is too narrowly focused from a traditional investment point of view.

[Sammy Pepys]

7. Through a mutual fund

Two stocks it holds off the top of my head are Glamis and FreeportMcMoran.

This year so far, it's up about 11%.

[BillORightsMan]

8. Buy precious metals now - CYA

Projections for the next point of resistance for gold seems to be around $575/oz.
Gold bugs are speculating $700/oz by the end of the year, but the opening of
the Proposed Iranian Oil Bourse
(and the US's response) may accelerate this.

You can buy precious metals at www.Kitco.com - check their pool accounts.
They offer US Gold Eagle, Canadian Gold Maple and South Africa Krugerands
in various sizes, if you prefer coins.

For up-to-the-minute charts, data and opinion visit www.321gold.com

You may also take note of this article -
March 20 to 26, 2006: Iran-USA, beginning of a major world crisis
The Laboratoire européen d’Anticipation Politique Europe 2020, LEAP/E2020, now estimates to over 80% the probability that the week of March 20-26, 2006 will be the beginning of the most significant political crisis the world has known since the Fall of the Iron Curtain in 1989, together with an economic and financial crisis of a scope comparable with that of 1929. This last week of March 2006 will be the turning-point of a number of critical developments, resulting in an acceleration of all the factors leading to a major crisis, disregard any American or Israeli military intervention against Iran. In case such an intervention is conducted, the probability of a major crisis to start rises up to 100%, according to LEAP/E2020.
Much much more at link...
:patriot:

[murray hill farm]

9. Thanks!

I have been thinking of taking about $20,000 out of stocks and investing it into cold coins..so, this was timely info for me. From what i have observed, cold coins are priced higher than gold per ounce, but i imagine one is paying for the collector value as well..do u have any take on what collector value will do if the american dollar declines..but even so, easier to trade coins than hunks of gold bullion.

[4dsc]

16. March 20-26, 2006 should be interesting

I forgot about this little website.. With all the war talk going around, I expect the shit to hit the fan soon..

[Nite Owl]

10. There is now a Market Safe CD

for Gold at http://www.everbank.com/main.asp?affid=eb

It's for 5yrs, principle protected and 100% of the upside. Sounds like a safe and interesting way to go if you intend to invest long term.

[Greyhound]

11. Forget the stocks, just buy the gold. Over 100% appreciation in the last

four years, in spite of a concerted effort to suppress the price. Forecast to hit $1500 - $2000 in the next few years. Also note that the governments of China and India, as well as many others, are buying it up and China is now allowing its 1.5 billion citizens to buy gold too. The countries are preparing for the impending collapse of the US Dollar and you'd better be too.
In a very short while, I think 2 years at the outside, our fiat currency will collapse and you'd better have something with a real value, in your possession.

[Sammy Pepys]

12. Buying gold is expensive....n/t

....

[Greyhound]

14. Stocks aren't free and they can lose 100% of thier value, not gold.

[Sammy Pepys]

15. Yeah, but I need over $500...

...to buy one ounce of gold. I need a tenth of that to make an investment in any one of my mutual funds.

And let's not fool ourselves, buying precious metals isn't any less risky than investing anything else. The prices can be extremely volatile and all these predictions of $1000 to $2000 an ounce are speculative at best. Chasing a return is not a successful way to invest.

As long as you're diversified well, you can survive nearly any situation financially. That includes gold, but it also includes stocks, bonds, cash and real estate.

[Greyhound]

17. You are right about the price, and I never said that precious metals

should be your only investment. Something you've overlooked, and it surprises me given how recently this lesson has been re-learned, is that stocks can, and do, lose all of their value. Gold has been the basis of wealth and currency since there was such a thing, and has never been worthless.
If you believe that the current dark age is just a blip, an aberration, and we will return to prosperity soon then you are right. If, OTOH, you agree that the corporate end-game is upon us, you better have reserves of something that has an intrinsic value that is recognized everywhere on the planet.
Why do you suppose that virtually every nation on earth, and especially China, is quietly buying up gold as fast as they can, but not buying so much that it causes the price to spike?

[Sammy Pepys]

18. I'm very aware that stocks can lose all of their value...

..being a stockholder myself.

That said, clearly gold and other precious metals have a place in a portfolio, and I hold those as well in "paper" form and material form. But gold and precious metals are best utilized as hedges (particularly against inflation), not as instruments of growth.

If you think interest rates will rise in the future, gold is going to kill you. It's a commodity with intrinsic value but it also offers no fixed return and is highly volatile, as mentioned previously. Anymore than 10% holdings of gold/precious metals in a portfolio, in the opinion of many, is extremely risky.

[Greyhound]

19. Odd how many of those with that opinion are in the business of

selling stocks and other paper. This is a profession that is regularly out-performed by a monkey throwing darts. Stock brokers, economists, and meteorologists are the only professions that I know of where you can be totally wrong a majority of the time and still keep you job.
Anyway, do what you will, so long as you harm no other.

[Sammy Pepys]

20. I also find it odd...

...that many of the biggest pimpers of gold and precious metals are dealers like Kitco.

Look, dump your money into coins and bullion if you want. I just pray you have a tight bid-ask range and your coins have substantial numismatic value when you find yourself needing to sell. If you're comfortable with the kind of risk you're incurring, it's your money.

[Greyhound]

21. yep and over the years I've been right a hell of a lot more often

than my financial "advisers". It is a hedge and when the economy goes south it is a boon. My grand-parents did it in the 70's, and the cycle has come around again. My stock portfolio has fluctuated in a 3% - 4% range for the last 7 years while the gold has doubled.
I like the characterization of "pimps" for those in a different field, very professional.

[Sammy Pepys]

22. Well roll them bones, baby...

See you in the funny papers.

[dcfirefighter]

13. Gold for possession ~ $1000

Best method for relatively small amounts of gold?

Why?
Because I think its neat stuff, mostly.
Not so much for fear of massive financial collapse - my 'worst case' scenarios involve wits more so than a stockpile of gold.
I already own gold related stocks, I'd like something for the safe that has a good chance of appreciating.

[Greyhound]

25. Exactly, and easy liquidity.

Hope for the best, prepare for the worst.

[dcfirefighter]

27. But how do you do it?

I was asking.

[Sammy Pepys]

29. Well, if you're not dealing in larger quantities....

You can go to a local gold/coin dealer, who should be able to help you out.

You can also buy into a pool account, where you hold a claim on some specific quantity or coins or bars or whatever that is stored elsewhere as part of a larger deposit...almost like a mutual fund. This big difference is that you can take physical custody of your share of the loot if you want.

[Quequeg]

24. Gold coins have outperformed the Dow since 1971

When we went off the gold standard in 1971, I believe that gold was set to $35/ounce and the Dow was around 1000.

Now, Gold is around $550/ounce. The Dow is around 11,000.
So, gold has grown about 15 times larger, whereas the Dow has grown about 11 times larger.

Of course, it's true that gold is still below its 1980 peak of $800/ounce. But things are cyclical in the markets.

For instance, if you had held onto stocks for the 16-year period from 1966 to 1982, you would have lost 70% of your money (after adjusting for inflation). This is because we had such high inflation during a period when the nominal value of stocks didn't go anywhere. So, the general stock market can do poorly over a long period of time also.

Yet, I think that gold has had such a tremendous run, that it could be flat for awhile. Currently, I don't have any gold, because I sold my gold stocks at the beginning of the year. Still, generally speaking, I think it's a good diversifier for about 10% of one's portfolio. And I don't think there's anything foolish with buying and holding gold (though I like to sell after huge run-ups). And I think gold mutual funds are good.

www.VOIDnow.org (Vote Out Incumbents for Democracy)

[Sammy Pepys]

26. But that gold runup...

...is recent. It did not achieve those returns consistently over the last 35 years. It's had big spikes, followed by equally big declines, and basically a lot of "sitting around."

Gold basically bounced around between $300 and $500 an ounce between 1983 and 1988, from 1991 to 1995 it was pretty much stagnant. From 1995 to 1999 it went from around $400 to below $300 an ounce, hung around that level for a few years, and now it's climbing back from that low to where it is now.

Compare the DJIA over the same time period.