What's the best and most secure way to invest in Gold Exchange Traded Funds?

Question

Imagine if another depression were to happen.

Answer 1

Another depression?  Wow.  I'm not sure that owning gold would do much good in that situation.  Maybe you could sell it for "10 cents on the dollar".  It certainly does not eat very well.

According to my mother, who lived through the great depression, the problem was nobody had any money.She emphasized nobody. There simply was no cash, it did not exist. The cash evaporated when the banks went bust. She described what was basically a barter system where you traded goods for goods. ( I'll trade you milk for eggs, corn for potatoes......) Those few that had cash, became much richer because they could buy things / assets ( like your gold?) for pennies on the dollar and waited until the economy recovered.   I think that's why a lot of people that lived through it took to burying cash in jars.  I guess that's one extreme.

The other thing that can happen is so much cash gets printed and is in circulation  that you must have a wheelbarrow full of money to buy a dozen eggs.  In that case, your gold  might be a pretty good investment.  You could trade it in for many, many wheelbarrow loads of cash or maybe( if the grocery store is still open) trade it directly for eggs and hope you don't get ripped off.... bring a tractor trailer for change.

Is gold a good place to put your money?  A portion yes, all no.    In Roman times, salt was the thing.  In the 1400's/1500's in the new world shiny glass beads was the thing. You cannot tell what will happen but you know you will need food and water. Cash, gold, salt, beads..... it's a matter of having something that others want/ need for which others will give you what you want/ need. In a total collapse, I would prefer to be heavily invested in beef jerky, you cannot eat that gold and if everybody is hungry they could care less about your gold.

Is an ETF a good place to have your money if you are considering a depression?  Will the ETF and exchange still exist for you to cash in your shares is a key question? Will grocery stores still exist so you can get food? If they do, will they have food in them?  I don't know. I guess it depends on how bad you think it's going to get. Personally, I try to keep faith that the sun will rise tomorrow and I keep a few gold stocks in my portfolio.

Answer 2

Well gold would be one of the safest investments and you know that. Whenever the depression happens people comes back to the bullion market. Futures trading in gold opened a great new chapter in investing gold. It is really fun and safe too.

Answer 3

First I think you are very smart to be thinking of investing in gold. The easy way is to buy Gold stock like GLD with say at e.g. TD Amertrade. Even as high as gold is today I think it is under valued if you compare to the weak dollar and inflation.

  

For centuries, buying gold has been recognized as one of the best ways to preserve one's wealth and purchasing power. Gold is a unique investment, one that has served mankind well for thousands of years. From the times of ancient Egyptians, Greeks and Romans to more modern times, man has been fascinated with the beauty and magic of gold, and with its power to change men's lives.

Gold bullion is real, honest money...and, many say, the best form of money the world has ever known. It is a store of value and a safe haven in times of crisis. Gold is rare, durable and does not wear out in the manner of lesser metals (or paper!) when passed from hand to hand. A small amount, easily carried, can purchase a significant amount of goods and services. It is universally accepted, and can be easily bought and sold around the world.

Today, the beauty of a gold bar lies in its ability to diversify investments, protect wealth and preserve one's purchasing power.

on.