http://www.dworin.com/gold-clip/
Good and Bad Ways to Buy Gold
Gold is going higher! The Dollar will soon be worthless! Every other television commercial seems to scream that gold – and gold alone – will secure your financial future. Maybe the warnings are sound. At the very least, gold represents a diversification from the stock, bond and real estate holdings found in a typical portfolio.
But what’s a would-be gold owner to do? Buy a gold coin on EBay? Open a commodity account to trade gold futures? Or call one of the TV pitchmen? Is counterfeiting a possibility?
What could possibly go wrong?
Unfortunately, the benefits of buying gold sometimes drown out the potential pitfalls for an inexperienced buyer. Gold can be purchased in a number of forms – some of which are more or less affordable and appropriate for a given investor. Brokers and salespeople tend to push whatever they have and gloss over alternative forms of ownership. Before you jump into gold or any other precious metal, be sure you understand your alternatives.
Gold Ingots or Coins
Good: Coins are widely recognized as being valuable because people are used to non-gold coins. Ingots – little bars of gold – are also somewhat familiar and therefore, freely exchangeable. Pure gold doesn’t corrode and is easily stored/concealed. And possession is key compared to gold ownership represented by a piece of paper.
Bad: When buying physical gold, you’re charged more than the exact, current market price. How much more depends on how much you buy and who you buy it from – so shop. And when some TV commercials and their salespeople tell you there is “no counterparty risk”, ask them about counterfeiting and clipping – shaving away tiny quantities of metal. As gold becomes more valuable, the incentive to defraud grows.
Collectible Coins
Good: Advocates claim that collectible or numismatic gold coins are less likely to be confiscated by the government in times of economic emergency. After all, they were exempted from President Roosevelt’s 1933 gold nationalization.
Bad: Collectible value can be difficult to determine. Condition and rarity are key to collectibles, unlike non-collectible coins and ingots. If a coin is “unique” its value lies completely in the eye of the beholder. You may be sold on the idea that a coin is rare, shell out big bucks, and then learn that it is neither rare nor in demand. Oh, and collectibles can be counterfeited and clipped, too.
Gold Stocks
Good: If a company mines or refines gold, it must own gold. As the price of gold rises, the stock in a gold company should rise along with it. Gold stocks are easy to buy and presumably run by managers who are experienced in their business. Let them worry about costs and storage.
Bad: Owning a stock certificate doesn’t mean that you own any gold. Company managers may or may not be capable of getting gold out of the ground profitably. And while you can presume professional honesty and competence, consider the alternative possibility: Enron. Madoff. WorldCom.
Futures
Good: Commodity futures permit the use of leverage: you only have to put up about 10 percent of gold’s value to “own” it. Thus, you can own more gold, faster – and profit more if the price goes higher. Storage, transport and counterparty risk are all someone else’s problem. Futures prices track the cash market almost perfectly.
Bad: The futures markets are designed as price risk management tools for owners of commodities, not vehicles for taking delivery of physical gold. Therefore they constitute another form of “paper” and very temporary ownership. And the same leverage that permits quick profits exposes you to losses that are just as quick. You possess no metal – and are subject to margin calls.
And there are other forms of paper gold. A gold Exchange Traded Fund (ETF) can be purchased like a stock, without the dangerous leverage of futures – but also without possession of the metal. Or you can purchase physical gold, receive a certificate of ownership and pay to have it stored in a secure location. Similarly, you can purchase bullion in an IRA account to shelter any profit from taxes. Again, you pay for storage and don’t possess the gold.
Bottom line: Leave leverage and collectibles to the pros. Possession, price and any ongoing storage costs are key. There are always costs over and above the cost of the metal itself and no form of ownership is best for everyone. Buy gold – but only from a trusted seller.
About the Author
Nick Flamel is a longtime risk management consultant. He is also the proprietor of http://www.GoldInformationCenter.com, a website that promotes gold as the ultimate inflation hedge. There you can find further details on how to use gold as a hedge and how to generate income from any gold you may own.
Fame “Black and Gold” Clip
|
|
14k GOLD Money CLIP Holder GEP Bill Dollar Sign Men $ $0.01 |
|
|
One Gold Easy Stretch Double Beads Hair Combs Magic Hugger Hair Clips J10H $0.01 |
|
|
GOLD EZ EASY STRETCHY DOUBLE BEADED MAGIC Multi Style HAIR COMBS CLIP J10H $0.01 |
|
|
Fashion 18K White Gold Plated four-layer Flower Charm Stud And Clip Earring $0.01 |
|
|
Gorgeous 18K White Gold Plated GP Shinning Swarovski Crystal Clip-on Earring $0.01 |
|
|
1pcs Gold&Brown MAGIC ACRYLIC BEADED DOUBLE HAIR GIRL COMB STRETCH CLIP EZ JBF11 $0.01 |
|
|
Lady Cosplay Vocaloid Zatsune Miku 2 x clip ponytail BRS GOLD ROCK SHOOTER Wig $0.01 |
|
|
Earring shaped into an R with a clip on back and gold like finish INV#9 $0.01 |
|
|
1pcs Coffe Gold MAGIC ACRYLIC BEADED DOUBLE HAIR GIRL COMB STRETCH CLIP EZ JBE30 $0.01 |
|
|
Gold Plated Money Clip Holder Men Jewelry Dollar Sign $ $0.01 |
|
|
14K GOLD GEP MONEY CLIP Bill Holder Dollar $ SIGN Men $0.01 |
|
|
1 CENT! Vtg MILLER SUPPLY Clasp GOLD TONE THREADED NAIL Fastener TIE CLIP Signed $0.01 |
|
|
One 4×3.5″EZ Gold Magic Hair Comb Easy Stretchy Clip Charm Jewelry Beaded JC01B $0.01 |
|
|
14K GOLD GP BAG Money CLIP Holder Bill Dollar Sign $ $0.01 |
|
|
Gold Plated Money Clip Holder Men Jewelry Dollar Sign $ $0.01 |
|
|
BAG SHAPED DOLLAR Gold PLATED Money Clip HOLDER $0.01 |
|
|
Jewelry Making 30pcs 18KG gold plate pinch clip bail beads 16mm #DZ30J $0.01 |
|
|
Gold Tone Money Clip #1 Dad Printed $0.01 |
|
|
One 4×3.5″EZ Gold Magic Hair Combs Double Stretchy Clips Jewelry Beaded J10H $0.01 |
|
|
300 Gold Plated Clip Bail 11x4mm(3/8″x1/8″) B16873 $0.01 |
|
|
Vintage Clip On Earrings Gold Tone w/Faux Pearls & Onyx with Rhinestone! $0.01 |
|
|
gold NEW Car Vehicle Sun Visor Sunglasses Eyeglasses Holder Clip $0.01 |
|
|
PINK GREEN YELLOW PURPLE ACRYLIC PLASTIC BIG GOLD HAIR CLAW CLIP 896B THICK HAIR $0.01 |
|
|
PURPLE CIRCLE PATTERN ACRYLIC PLASTIC BIG GOLD HAIR CLAW CLIP 897B THICK HAIR $0.01 |
|
|
One Gold Fashion Stretchy Clip Jewelry Beaded Magic Double Hair Comb JC01B $0.01 |
|
|
RED ACRYLIC PLASTIC FLOWER BLOSSOM BIG GOLD HAIR CLAW CLIP 895A 4 THICK HAIR $0.01 |
|
|
1x Gold Ez Magic Hair Combs Double Hugger Stretchy Clips Jewelry Beaded J10H $0.01 |
|
|
Vintage Jewelry Costume Gold Clip Earrings Brouches Necklaces Ring Purses Chains $0.01 |
|
|
VICTORIAN FAUX TORTOISE SHELL 9CT GOLD FILLED SCARF CLIP V RARE – NO RES LOOK !! $0.02 |
|
|
Jewelry Making 30pcs 18KG gold plate pinch clip bail beads 16mm #DZ30J $0.06 |