Is buying 4 grams gold/month worth dng it for future use?

Question

Plz advise on other possible safe investing options ...wth my money on monthly basis ...

BTW..iam left wth jst $100 every month..so..people..suggest sme.

Answer 1

First of all you should not ask for investment advice on the net ! Second, you should ABSOLUTELY avoid to buy gold at these abnormally high prices. I think a relatively better option for you is to use those $ 100/month to buy stock market mutual funds' shares. Now the stock market is probably UNDERvalued while gold is OVERvalued. On the internet you can easily find a long term chart of gold's prices ( 20 or 30 years ). If you do not believe me, look for yourself. Buying it at these levels would not be a clever thing !

You risk that in 2020 your gold will be worth only 30 or 50 % of the current price.

This is a speculation time for gold. Not a good buy !

I have a group about investing. It is our "hobby".

http://finance.groups.yahoo.com/group/sc...

( do not worry I do not sell anything and in the group spamming is forbidden ! )

Answer 2

First of all, I believe gold is an excellent long-term investment.  If you buy gold you should not panic if it goes down 20 or 30 dollars an ounce.  It will go back up.  As our currency inflates, the price of gold will rise accordingly.  And our government is actively pursuing inflationary policies.

Second, you should be aware of the "spot" price of gold.  You can check it online, anytime:

http://www.kitco.com

The price is quoted in $US / troy ounce, 31.1 grams per troy ounce.

At the moment I write this, gold is $882.60 / ounce = $28.38 / gr.

The price you pay for gold will be slightly higher than the "ask" price, your seller is entitled to make a profit, but it should not be too much higher than the current "ask" price.  If you are not buying it in person, there will be processing, shipping and insurance costs.

It is important that you buy from an honest source.  If you explain your investment plan to them, you may be able to obtain better prices or shipping terms.  

Might I ask what form the gold will take?  Someday you will plan to sell it, and when you do, you would like your buyer to know and trust that your gold is 24K  and honest weight.  If the gold is labeled regarding weight and fineness, and has a well-known company behind it, it will be much easier to sell than some shapeless blobs of yellowish metal.

I do not buy by the gram much, but just for comparison, look at the Kitco ChipGold bar:

https://online.kitco.com/splash/chipgold...

It sells at a premium, but note that it comes with a certificate  attesting to it's purity and weight.  A buyer would be able to look at it and know that it is what it says it is.

Finally you will want to safeguard your gold.  Lock it up somewhere, and do not tell strangers or casual acquaintances that you are collecting gold.  There is nothing wrong with collecting gold, but there is no sense attracting thieves.

Happy investing in gold!

Grandpa

Answer 3

With so little money, I'd save it rather than trying to invest in a hot market like gold. All the commodities, including gold, have come down in price and will probably stay down as the whole world economy seems to be softening.