Is gold the best investment?

Question

Having lost thousands of dollars on bad deals, I finally decided to limit my personal finances by investing my saved money in gold. I purchased 1 and 1/10 ounces for 1000$ Was that a good deal? Is gold the best investment choice or could I actually end up loosing money?

Answer 1

Simply an uniformed decision that can lead to disaster.

First off... it's cheaper & better to buy the ETF "GLD"... no storage, shipping or commisions to buy.... just a very small annual charge of .40 (which is less than most Mutual Funds (most funds range between .80 and 1.50%).

Plus: If you bought this gold recently.....  The current pice is around $810.... so your price for what you bought should have been $902.00.  You're already down 10%.

Putting your own portfolio into one asset is gambling. If it's a declining asset.... that's worse.

Your problem may be simple to solve. Learn about "asset allocation".

Read a few good books like: Mutual Funds For Dummies.

Taking a little effort now will make you tons of money over a lifetime.

If you bought gold in the 1980's.... you could have less money today!

Gold is appropriate in most peoples portfolio at no more than 2% of all your assets!!!!!!!!!

Take the time to learn!  You'll be happy you did.

Answer 2

gold is a good investment, but you are paying way too much.  that is a sucker's deal

Answer 3

There is one US  gold coin that sells close to it's weight in gold bullion, that has a track record of increasing value as gold goes up and even if it goes down in time. In fact in all my 25 years as a professional numismatist I have never seen such an opportunity. If you are interested in investing I have no complaints with the Numismatic community ever and thousands of happy customers. Call GS North 800 730 COIN (2646) VISA MASTER Checks et OK, 100% gauranteed satisfied return policy!

Answer 4

Yes. Long term investment on gold appears to be the best.  

Answer 5

Gold is a on the rise but the price you buy should have been lower than that otherwise you will lose.

Answer 6

The price of gold goes up and down.  You paid $909.09 / ounce, which is on the high side.  But sit tight.   Owning gold protects you from inflation.  Inflation is running 13% currently (the Government excludes food, medicine, and energy) and is expected to continue for the foreseeable future, as our government cannot resist spending like a drunken sailor.

No matter what happens to the US Dollar, your 1.1 ounce of gold will never be worthless.  You can check the price anytime online:

http://www.kitco.com

The spot price as I write this is $827.40 / troy ounce.  By the time you read this, it may have changed.  So yes, if you sold it right now, you would lose money.  I would not recommend selling right now, unless you desperately need the cash.  If you wait a year or two, inflation will have made the dollar worth much less, which will make your gold worth more.

Grandpa