Bullion how is it an investment?

Some explain how it works im not great with finances ?

Buy 1oz gold - $1349.69
Spot price $1321.70

Local buyer pays 98% spot price
$1295.26

So as soon as i have it im $54 down.

So im curious how is buying bullion an investment??

a reply to: Ghostsinthefog
It works as an investment if the purchaser keeps it, for the moment, and does not sell it again until the price has gone up.

a reply to: Ghostsinthefog

The biggest positive I can see with it is that it will always have value.
You will probably not make a profit.
But you're not likely to lose either.

a reply to: Ghostsinthefog

You hold onto it till it goes up 4% to sell it to break even. That is why you buy things when the market price has fluctuated down and sell when the market fluctuates up. If you buy on the recent high then you probably have to hold it longer than if you bought it at a recent low.

You are not going to make an instant profit, life is not a video game.

I also think there is some value in precious metals because you can actually hold them and store them yourself. I would never go with the gold/silver certificates but would instead hold the physical.

The government can't track it. One little 'boating accident' and poof, it is gone. You can pass it onto your offspring without paper trails so the inheritance taxes need not apply. Then for the more insane of us, it is a great comfort to have, thinking about the coming Apocalypse. Even though it may not pan out to be a tradable instrument in the time of disaster, it probably has a greater chance than most of the electronic stuff out there.

If the theorists are correct, precious metals will really shine in the time of high inflation and hyper inflation.

a reply to: Ghostsinthefog

What TinfoilTP said.

In regards to how gold is as an investment, it depends what type of investment you are looking for.

Do you want something with volatility that's going to move quickly so you can make a quick profit?

Do you want something to hold that will increase in value over time?

Do you want something that will be a safeguard against a devalued dollar?

Gold is great for the latter two. Silver is better.

Thanks everyone i have a better undetstanding now.

What am u trying to achieve?

Well as most know im going for heart transplant so i want to invest in somthing that will hold value, the gvt cant tax to hell and take from my loved ones i leave it to

originally posted by: Ghostsinthefog
Well as most know im going for heart transplant so i want to invest in somthing that will hold value, the gvt cant tax to hell and take from my loved ones i leave it to

The government can and will tax any legal investment you make. And even the illegal ones too if they find out about them.

a reply to: Ghostsinthefog
Check your tax laws.
Some countries impose taxes on inherited capital.

originally posted by: Ghostsinthefog
Some explain how it works im not great with finances ?

It cost exactly the same amount to buy an average single family detached home today, as it did 100 years ago, when the home is priced in gold.

So, if you buy sufficient gold to get one of these homes today, you're guaranteed to be able to pass gold that on to your grandchildren, to enable them to buy a home 100 years from now.

But, if you gave them the dollar equivalent of today's gold, they would only be able to buy the dog house then.

That's how it's an investment.

Gold is considered "a store of value".

It neither goes up nor goes down, in terms of real goods.

a reply to: Ghostsinthefog

www.goldscape.net...

many better options in crypto form.

originally posted by: Ghostsinthefog
Thanks everyone i have a better undetstanding now.

What am u trying to achieve?

Well as most know im going for heart transplant so i want to invest in somthing that will hold value, the gvt cant tax to hell and take from my loved ones i leave it to

You can buy gold coins from your banking institution online. I see you are a fellow hoser, so you can get 1/10 of an ounce maple leaf coins for usually around $180. I love these ones. Also any silver coins pre 1967 (except nickels) have a large quantity of silver in them and are a great thing to have.

Note that the price of gold is priced in USD so us hosers pay the exchange difference. Also note that gold rarely sells for the spot price, usually a little higher, depending on what is going on in the world.

I don't go all in on precious metals, but I certainly allocate about 30% in case the world has a currency crisis. You will see gold shine then. Good luck!

a reply to: Ghostsinthefog

If the US dollar ever collapses like their fiat did in Venezuela, you will be rich.

a reply to: NobodiesNormal

That's interesting but the coin will depend on the existence of the establishment that holds your gold.

Not sure how secure I would feel about that.

a reply to: deuceawesome


Do you know any Canadian websites you can purchase bars/coins?

The canadian mint site doesnt seem to let you purchase.

a reply to: Ghostsinthefog

Hard asset, tangible, intrinsic.

Bank vaults issue paper, they keep gold in their basement.

Precious metals are more a 'hedge' than an investment.

Don't put all your apples in any one basket, diversify.

Silver is cheaper, readily available in small, easily recognizable increments. Pre 64 US silver coins. I get mine from a local flea market. Theres no tax or fee.

Buying bullion is always a good investment,you might not need to use it right away but I always keep some on the shelf for when I might need to make a good soup!

originally posted by: Bluntone22
a reply to: Ghostsinthefog

The biggest positive I can see with it is that it will always have value.
You will probably not make a profit.
But you're not likely to lose either.

This is the correct answer for most cases. Large investors will gravitate towards gold when enough other investments are doing badly (aka, when the economy is doing badly). Once the economy picks up, they'll typically take some money out of gold and put it into the other things that have become profitable again.

a reply to: Ghostsinthefog

You might want to look at gold prices from the 1960s onwards. You'll likely be shocked at how much it's increased since then (here you go). Long term investors have made an absolute fortune on gold. And gold has had some incredible short term spikes since then too (both up and down), which have also made someone an incredible fortune if they timed it right.

originally posted by: Ghostsinthefog
a reply to: deuceawesome


Do you know any Canadian websites you can purchase bars/coins?

The canadian mint site doesnt seem to let you purchase.

I just get mine from my CIBC online banking site "buy precious metals"

They send it out by courier, arrives in a couple days.

a reply to: deuceawesome

Thanks deuce. Apprciate it