Looks like there is a stock GLD that represents a 1/10th of an ounce. Looks like a cheaper way to get started maybe. All you would have to spend is the MM diff (ask/bid) and the price that your broker charges per transaction.
Years ago we got into some "week" trading. We did horrible and it was a good lesson as to how a fool and his money are soon parted (or married). We used Scottrade and I think all that was charged was 7 per trade.
Now if you were to buy 100 shares of GLD (which should be 10oz of gold, or the equiv in stock) that should cost about 6160 (spot now is 616) plus 7 for the trade.
When you sell it you would....heck forget the variables.
you pay 7 bucks plus MM buying and pay 7 plus the MM(the diff in the bid and ask) when selling. Depending on the amount of gold this could be a smaller amount of "fees".
If I bought 1-10oz bars, and sold locally I would be paying about 200-300 (or losing it depending on how you look at it)
In other words if this works as good as I hope/think. This may be a cheaper, (better?) way of doing it.
Of coarse my understanding of how a stock is valued brings me to the opposite. A stocks value isn't (solely)tied to it's companies worth. It's the public/private perception of it's worth. ebay, yahoo and others have had stocks go WAY up even in times the company didn't make a cent, or was in the red. I would be interested in seeing a few respected posters' opinions.
Anyone wanna give it a shot? I probally would baby step it and take 10 shares if someone wants to get in and fool around also, see if we can make some money. Heck I'll probally do it regardless, I'm very impatient but it would be fun to have another person jump with me.
reference - (not the best article but will give you an idea) http://news.moneycentral.msn.com/tic...&Symbol=US:GLD