How does one invest in gold?

[Centre_Left]

Hearing all the traumatic predictions about the global economy has compelled me to look into an area of which I know absolutely nothing: investing in precious metals. I'm sure someone has asked this question before, but I was wondering if any of the "goldbugs" could recommend some basic resources on the subject, including books and websites. It's difficult to find decent information because so many people out there have a hidden (or sometimes obvious) agendas. That said, could anyone please offer their recommendations?

[madinmaryland]

1. You use cash

which is as good as money to buy it.

[Centre_Left]

10. Gee, thanks, smartass (nm)

nm

[NMDemDist2]

2. go to the local pawn shop and buy it by the ounce in the form

of rings etc

[Southsideirish]

3. I heard on an investment show this weekend that the "metals mkt"

is very cyclical, 'is currently on the "down" part of the cycle and it will be several years before it reverses. Sorry.

[donco6]

4. I'd think long and hard

You can invest in gold just like you invest in stocks or bonds - you don't have to actually go out and buy coins (which is really a numismatic investment). You can buy and hold shares in gold, held by a third party custodian. You don't have to worry about security that way, and you can set it up to make automatic reinvestment from your bank account to factor in cost-averaging.

But don't fall for all the hype. If the economy collapses to the point where we're trading in gold, you're going to have a lot more problems to worry about than that.

[ClintonTyree]

7. In a real crisis............

your gold stocks may not be worth the paper they're printed on. I buy ingots, not coins. They're available from many places, hell you can buy them on ebay, although I wouldn't reccomend that.
I want the metal in my hands, not a stock certificate. Just a matter of preference I guess. I know the stocks are very safe but like I said, in a REAL monetary crisis give me the cold gold any day.

[Centre_Left]

9. I'm primarily looking for a store of value...

...I'm not intending on actually trading in gold (I hope). If/when hyperinflation comes, I just want something that will be a reasonable store of value until the economy gets back on track. I'm not looking to make money off of this particular investment.

[donco6]

13. IMO, bonds would be a better way to go.

You can lock in an interest rate for an actual return, rather than flat value. Inflation-proof. Safe. Don't have to worry about fire/flood/thieves. Some municipal bonds are tax sheltered.

[Nite Owl]

5. Try this web site

www.kitco.com
There is also a gold board at www.clearstation.etrade.com., use _$hui as the symbol.

[daa]

6. It depends on your portfolio

If you are established in your portfolio you should have 5-10% in gold or gold stocks for diversification. Gold and metal stocks are a good play. Newmomnt Mining (US) Placer Dome (Canada) AngloGold (SA. I wouldn't buy the hype of the gold coins.

Gold moves inversely of the dollar. Since Greenspan is monitizing the US debt, that means inflation, which means the dollar falls against the Euro and other currencies, which means gold goes up. The dollar should fall another 30% so look for gold to go up.

http://www.gold-stocks.com/

[Centre_Left]

11. If you don't mind me asking...

...what's wrong with the gold coins? That seems like the most basic way to invest in gold; they're recognized everywhere, they're easy to store and sell etc..

[daa]

12. Not a liquid market

And I really stay away from any outfits that heavily advertise on Limbaugh or shows like that becuase they are usually a scam.

[leftyandproud]

8. Ebay has plenty

I personally prefer SILVER, considering it is much cheaper...better bang for the buck. You can get roughly 70 silver coins for the price of one gold coin. Just buy the generic stuff...nothing fancy or rare. Silver eagles are beautiful and easy to buy and sell anywhere.

[modrepub]

14. consider other metals too

Silver, platinum, palladium. Platinum will be good if the economy continues to improve because it has far more industrial uses and its supply is more restricted. It's moved a lot more than gold over the past 10 years; from mid $200 range to low $900s a couple of months ago. I talked to a salesman who suggested this. Platinum is used in different car emission control devices which SE Asia is considering putting in their automobiles. Do your homework and don't put all your "eggs" in one basket.