I WANT TO BUY SOME GOLD but I AM A LITTLE SCARED

I respectfully disagree. I believe the OP is getting some solid advice, observations and strategies. I have invested for years and, at a minimum, read some good reminders for myself.

 

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Wasn't he asking about physical gold? Also he gave his thoughts about stocks.
Thirdly has he even been back to this thread?
Just my opinion, no offense intended.

 

Yes, because stocks and bonds pay dividends/income while gold does not.

Stocks and bonds represent real physical assets that appreciate over time with GDP growth whereas multiple commodity factors determine gold's price.

Stocks and bonds are not a speculation because you are letting time work FOR you not AGAINST you.

 

Actually, they are quite simple investments if you understand the underlying asset structure.

Many MREITs go UP in value when rates go UP because they are credit-sensitive.

They are largely trading vehicles for months or years rather than buy-and-hold for decades.

 

I believe you'll find that self-education will provide a greater return than job changes, as there aren't additional taxes on learning. A wise "investor" can locate "poor mans" Gold coins with a greater return potential than Silver products.

JMHO

 

buy the GLD etf...caution however, it's up 21% year to year.

https://www.google.com/finance?q=NYSEARCA:GLD&ei=0IOsV4HBFMqpmAGL866wAQ

 

I don't think you need to be afraid of buying gold. A few years ago I decided that I had some expendable income and I did not want to keep my money in a bank or at home so I started asking a lot of questions about gold and finally started buying gold bars. I don't keep them at home. I figured if things keep getting worse in this country you could always spend gold. I found a very reputable gold/silver shop in Sacramento and they were very easy to work with and explained everything in detail and I have not had problems or questions with them. One of the things I like is if you buy over $1500 at a time...there is no sales tax. They never ask me my name or my phone number or my address. And they have price list available online.

 

Another thing...I bought my first Saint-Gaudins $20 gold coin recently. I love it.

 

Just a thought to ponder....

Gold should never be considered to be an investment. It should be viewed as insurance for whatever wealth you possess.

 

Opinions are cheap and everyone has one. I really don't think a coin forum is a good place to go to for advice on what to do with $8,000. If you read the different posts, you'll see what I'm talking about, everyone has a different suggestion. The accepted advice is put 20% of your investment money into physical gold (take physical possession of the gold) and then diversify the rest.

Diversify into what? I don't think I'm competent enough to advise you what to do with the remaining $6,400. What would I do? Speaking as a layman and not a licensed financial planner, I'd put some money into Treasury notes, some into energy stocks, and some into a retirement fund such as an IRA or Roth.

By the way, I'm retired and this is what I have done and it worked for me. I also had a 401K from work that did well. Will this work for you? Don't know, and I really don't think anyone really knows. I do know I bought silver at $5 an ounce and gold at $450, so for me it has appreciated well. Will it continue to appreciate? That's the elephant in the room.

 

I'd take that money and put it into energy saving windows for the house...........

 

Canadian Maple Leafs are a good way to buy bullion.

 

Gold was an investment for me - it is always considered an investment - because you are investing your money in it. Yes, it does hedge inflation - but again this is popular opinion and rhetoric.

Gold and silver were *successful* investments this year as well.

You should *never* use *always* to qualify any investment - especially based on rhetoric.

You should *always* consider the source of anyone that says *never* to any blanket statements.

Statements like these and blind following lead to the sheep herd mentality of investing.

For those that have followed my exploits the last year, I *invested* heavily in metals over the last year - and am now reaping the rewards.

I bought up every piece of silver and gold I could find at or below melt (jewelry, coins, sterling silverware, bars, placer, etc). I moved my dollar cost average down to right around the all time lows of the decade. And I made 5 staggered sales in the last 3 months and realized profit from my *investment* in gold and silver.

Let me tell you - far in excess of what the stock market did. Partially because everyone was so busy hating metals - I was able to pick them up far below melt. I hit an auction on Memorial Day weekend where I paid an average of about 65 cents on the dollar for melt value gold and silver jewelry. A fantastic score!

Educated decisions, known risk, known reward potential = investment.

Now, the stupid thing I did was to buy high value coins. A much riskier investment - but more of a hobby/obsession/fetish?

Selling over 150 Peace Dollars to buy 1 Peace Dollar should be considered insanity by anyone other than a coin collector.

 

Brett makes excellent points. Investing is not a series of rules and platitudes. There, at least for me, has to be a constant review of where I am putting my money -- and why. If one wants to put his horns down and say "this is the only way to do it," unhappy results are likely to not be far behind.

One other thing, investing is not for the egotistical and the bull headed. It requires quick recognition of when someone has made a wrong move -- and the willingness to correct it quickly.

 

I wouldn't put all of it into an investment, and try to diversify it a bit so you don't lose your shirt if gold drops to $800 or $700 in the near future. Also try some silver, that metal has shown to make bigger gains than gold in the not-so-distant past.

I would maybe save half of that in the form of cash, and don't even put it into a bank (sock it away somewhere so the banks don't even know you have that much, MUMS THE WORD!) Personal opinion though.

And there are reasons to have some money saved up, maybe a future health issue or family issue may arise. You never know what life will throw at ya.

 

Green18:

Better yet- solar panels! Cut down on energy costs (can even sell the excess energy back to the power company) and I believe the government is still giving a 30% credit.

 

Description ??

 

Actually, it's a GREAT place to get advice and opinions -- you just have to do your own due diligence and screen out the nonsense.

No different than any sources of information on other stuff on the Internet.

I have both a CFA and CFP and find the internet great for information -- IF you know where to look.

 

What year and grade ???

 

My point was I felt this forum was for coin collectors, not investors. Yes, the Internet has a wealth of information for investors, but I don't think this forum is one of those places.