Investment Advice : How to Buy Gold

Investment Advice : How to Buy Gold


Hello, my name is Mark Griffith, and this
is going to be a very short introduction into how to buy gold. Essentially there are three
ways in which you can invest in gold. The simplest, the most obvious is buying physical
gold, and that would be buying for example, gold jewelry, buying crew grams, buying ingots
of gold, bars of gold. The second way that you should think about this is buying some
kind of contract, its price is fixed to the price of gold. And both Chicago and New York
there are contracts available where you can effectively buy something that means you have
ownership of that gold, or you have ownership of a contract who’s price tracks the price
of gold, but you don’t have to take ownership of it physically. That’s the problem with
the first type, is you have to decide where to store the gold bars, lets say you’ve bought
yourself five gold bars, you have to put them somewhere. In fact, you probably will be leaving
them at a bank in a deposit accounting cage, or in a safe somewhere, and you might have
to pay for that. So there’s physical ownership of gold, then there’s ownership of a paper
contract, which is designed so the price tracks the price of gold. And the third popular way
to do it, is to buy shares in gold mining companies, and there’s a variety of mining
companies of course. There’s some which only mine gold, there’s some which mine a whole
range of minerals. And you have a serious of problems there. One of the problems is
that like all shares it’s more complicated than simply the price of gold, that’s to say,
the company might have excellent gold reserves, but it might be badly managed, or the company
might be very well managed, and actually have not such good gold reserves. So the closer
you move towards buying shares in mining companies, the more complicated things will get. On the
other hand, it’s very simply easy to buy and sell shares and on occasion you might find
it difficult, for example if you have physical possession of gold, it can be quite difficult
to sell the gold. So you want to bare in mind, do you want to have the gold physically, do
you want a contract that tracks the price of gold precisely, or are you happy to simply
add some mining companies, some gold mining companies to your share portfolio. Think about
those three, and then you should be in a position to get yourself into the gold market. One
other thing to consider, is that lots and lots of gold is held in bullion form by central
banks, and is used by central banks as an instrument for covering losses, for moving
their own currency around, for defending their own currency. So if the currency is weakening,
you might find that they are selling off gold in order to pay for day to day operations
to defend their currency. What that means is gold is a good investment, but it’s not
as straight forward as it looks, it’s widely used as a bullion reserve by large banks,
and therefore the price can move in unexpected directions, so be careful. Good luck.

62 Comments

  1. If one were to buy physical gold and later wanted to sell it, how would you go about doing so? I presume that I can sell on eBay, but that isn't a traditional option. What is normally done, and why is it difficult?

    I enjoyed the video but would welcome more details into the mechanics of buying and selling gold.

  2. reply to smallworldfilms: you can usually buy from a local refiner who can sell you like a one once ingot or bar with a stamp on it and sell it back to them later on near to the gold fix price of the day

  3. Thanks, but how would I find such a person? I've seen home-made bars on eBay but have avoided them as potential scams.

    I have found a coin dealer nearby who sells me whatever he has at a price very close to spot for either silver or gold. He views himself as a dealer in numismatics, so there isn't a lot available but the prices are the best I've encountered. As a result, I've steered toward silver or gold American Eagles, rather than bars.

  4. How you hold your gold also has to do with what your personal expectations of the future may be. If you expect your world to remain the same over the next 5 or 10 years, then you,re probably better off holding bars/rounds, or the contract forms. However, if you expect economic Armageddon then minted coins will serve you better when buying essentials from the local hood; or, if you have to evacuate, small gold coins are much more portable than bars, & more useful than contracts!

  5. Your betting on the fact that our national debt will deleverage with it. It will not and social security will fall apart as well. The government will not let itself deleverage. It will print money at an ever growing rate. This is not the 1930's where the government is restrained by a partialy intact gold standard. DO NOT put your money into cash. Just because we have mass deleveraging does not mean our money supply is shrinking. It is not, it is actualy growing, real dollars are losing value.

  6. Also, as our cost of living goes up, the government will also print money to sustain businesses that can no longer afford physical items that have gone up in price. This only further increases inflation. Its a chain reaction that cannot be stopped. Get gold to protect your money. By the time you finaly prepare out of shock it will be too late.

  7. All this talk of buying gold sounds fishy. Sounds like another asset bubble to me. Dont put your eggs in one basket.

  8. buying gold is actually less about making money and more about not losing money… gold is "inflation proof". What that means is that when it goes up in cost, it's only because the value of the currency goes up and down… It's kind of like the ocean, the water is fiat currency (most world currencies), and land is gold. Someone on a boat affected by the waves might go "Gee, that land is going up and down." but that's just an illusion. The land/gold is stable, the water/currency is not.

  9. So what happens is, you don't actually make profit, at least as far as "what you can buy". But what you do is prevent your net worth from decreasing as opposed to sitting on cash and letting it inflate. That is that $10k in your bank won't buy the same amount of gasoline or land in 10 years, but convert it to gold, wait 10 years, convert it back and you lose a LOT less value.

  10. now, when I say "inflation proof", I'm *not* saying that it is very literally completely, 100% resistant to inflation… it's just the inflation is so miniscule because gold is so rare that the amount that gets mined is so small that in your entire lifetime, you're unlikely to notice any inflation.

  11. Actually buying gold is generally a sound investment. Of course, you always want to make sure you do your homework before you make any investment. Plus if you have a Self Directed IRA–you can purchase the gold with your IRA $.

  12. I like the way you think. Im surprised more people dont see this considering gold is at a historically high price. If you have some time and would like to discuss this matter or any economic matter any more feel free to drop me a line.

  13. Disagree. The sheep invest in shares and fiat currency. Gold is proven the most stable investment. It has done well for centuries and centuries. The most stable economies in history were those backed by gold. Fiat currency/paper money economies collapse, bust etc and can be easily manipulated (more volatile). Gold is an excellent insurance. I take physical ownership. Study money and the history of money and gold. A good place to start is the book; "The Creature from Jekyll Island" E Griffin

  14. um, yes you, you take the volume of the piece divided by weight, and you get your answer, gold has a specific weight, math doesnt lie, and you cant fake a specific weight per volume.

  15. Because you can sell it 10 years down the road and make serious profit numb-nuts. Over the last decade, gold value
    increased by over 200%

  16. @luccaskunk okay lets say we live in that upcoming one world order one world currency and where theres no more paper money lets say we use those micro chips or lets say we use debit cards wich is virtual money its only number (kinda like in stars wars where they use credit instead of paper money)then where the pricing of gold and silver would be .

  17. @madiovich I have doubts that what you're suggesting would ever happen. Chips like that would drive up the cost of doing commerce immensely. There would be a much higher overhead on every single transaction. In addition, many countries would likely balk at the idea of giving up their own currency. Also, it would mean banks wouldn't be able to make profit on exchanging currencies. That's *very* important to banks you know, making profit.

  18. Gold is very easy and safe to buy and sell. $100,000 in gold is very easy to hide. This guy does not really know what he is talking about.

  19. Want advice – put your money into a few large bank savings accounts, you will get your money every month, it wont disappear into thin air ( it will be there when you need it ). Do not buy shares shares are a rip off. Shares = luck = gambling.

  20. I went to a pawn shop yesterday. They suggested gold coins. If I buy gold, I definitely want to physically have it. Can the price of gold really keep appreciating though?

  21. Ya change your paper fiat money for a paper that says you own gold… wise invesment lol
    If you dont hold the gold in your hands… you DONT own it… you own a peice of scap paper that says you own gold… that shouldnt be that hard to figger out there ;-/

  22. Keep in mind, real natural gold nuggets also make great investments.
    Gold nuggets are now rarer than diamonds. Nuggets only form very near to the surface, so future finds are limited by nature.

    Less than 2% of all gold is found in nugget form, so larger gold nuggets are extremely rare and highly precious.

  23. @luccaskunk What you just said as an example,isn't an example,is the way it is,the way the game is played was design based on that,you know,like in code. Example: the word "delivery" or "currency".like water in the river or ocean. Anyway the result is the same,more power to them,and more bills to pay,for us.

  24. @luccaskunk That's only half of the story, my friend. But I really like your description of that half and I agree with you. But you're not thinking about the other half. I mean, gold is a commodity. Just like any other commodity, gold is affected partly by supply and demand. Think about it……. Platinum, palladium and silver have all shown us that there is a limit to how high something can go in price before it substantially loses value. In 2008, platinum went from like $2,200 to $774.

  25. @ryanhall2013 yeah, it's just hard to concisely explain the phenomena of market adjustments… but there is a smoothing algorithm that can be applied which compensates for market adjustments to show a value much closer to the true value rather than showing the effect of market adjustments. Remember, market adjustments are caused by profiteers buying and selling. This isn't the same thing as supply and demand, it's simply a bunch of people buying and selling to try to screw each other over..

  26. @luccaskunk Yes, that's one of the biggest reasons why fuel prices went up. The greedy profiteers were speculating that the price of oil would go up (even though the profiteers themselves were the ones raising the prices). So what did these profiteers do? They bought up a bunch of oil as an investment. This helped the demand for oil to increase while the supposed supply was decreasing. They played a factor in supply and demand and helped to drive the fuel prices sky high.

  27. @luccaskunk Please read the comment below this one first…. Stupid Youtube limits our words .. =( ha ha. But anyways…… This same example that I used for oil/ fuel prices can be applied to the economics of gold. Think about it….. People are only going to pay so much for gasoline. If gas prices increase too much, everything else that is transported with vehicles to stores will increase in price too. There has to be a cut off point or what I like to call an economic bubble.

  28. @luccaskunk Please start reading 2 comments below this…… So what I'm saying is that gold runs on the same principle. It is a different market, but it still has the same economic principle. When so many people have the gold, the supply will decrease and demand will be high. But when the gold goes up to a very high price, it will have to drop sometime. I've noticed throughout history that shortly after a sudden rise in value, precious metals quickly CRASH. Then they start over again.

  29. @ryanhall2013 except that oil is actually far more of a commodity in that it gets expended. Gold isn't a one use commodity like Oil. So it's not quite the same. But yes, Oil, Silver, Platinum, Gold, they all go through what's known as "market adjustments" which is what you're describing. Again, there's an algorithm to smooth it out to show the true value. The only problem with the algorithm is that it can only be used retroactively.

  30. @luccaskunk I have finally found another intelligent person on Youtube!! That's hard to do these days! We should be Youtube friends!

  31. "Gold is the money of kings; silver? is the money of gentlemen; barter is the money of peasants; but debt is the money of slaves."

  32. @1942nuclear that may be true but food isnt good wealth storage, Im not gonna argue with having several months worth of food on hand but after that where do you go? answer real money

  33. @TheGreekMan1981 "I also feel I am to smart to waste anymore time on you" – you spelled "too" wrong. irony?

  34. I agree – owning Gold is about the only form of real security TODAY – I am an Affiliate for a17 year old German Financial Institution called KB Edelmetalle who are booming right now with Global Expansion and by helping people to open FREE Online Accounts as a Customer. They also have an amazing FREE Affiliate Programme that pays huge bonuses –
    What makes them unique, is that you can open a FREE Online Account and purchase small affordable weights of Gold in weights of 5g, 2.5g, 1g and 0.5g. T

  35. Buy sovereigns and Brittainias – they do not attract capital gains tax when you come to sell. Krugerrands do and gold bars do.

  36. in en event of an economic collapse. tangible goods is the currency, pots pans, batteries, fuel so store up as much as u can. food is very important and clean water

  37. @1942nuclear You are absolutely correct. The problem is that food is not durable enough, it spoils. Buy land to grow food. Save money to buy land by buying gold.

  38. The British "Crown" (The LONDON CITY STATE) will confiscate your gold under the guise of the "Federal Reserve Bank" as they did in 1933. You will get about 10% (or less) than value. If you do NOT give your gold to the NWO they will arrest you. In the past the penalties were deemed harsh for "hording gold". TEN YEARS! This time around it will be FAR worse! If you don't give up your gold purchases you will be labeled a "terrorist". The NWO can't allow people owning REAL value all Willy Nelson!

  39. @MrBanker2222 i think the last person i would trust on you tube today is called MrBanker. you lost yourself a potential customer there.

  40. @rvhcbur
    Its not that hard, I'm at about 490% and climbing. You need a better trading strategy. I use this for 80% of my trades. Watch this: bit.ly/NsY8H0?=reldhp

  41. absolutely right. when you do penny stock trading get good suggestions from professionals is the wise idea. its not a joke, Best way to invest your money in stocks is to be a member of a renowned professional assistance team. i found it here –> bit.ly/18Y8QFP?=vjikql

  42. Found this article on New York Times about Gold:
    "Gold Is More Glamorous Than Ever" -> goo.glIaASnE
    What do you think about it ? Is the timing right now for a gold investment ???

  43. There's an opportunity that pays you to buy 999.9% pure currency grade gold. You can buy in one gram increments which makes it very affordable if you so choose. 

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