[startrader]

Ever since stocks around the globe have come to a collapse I've been reorganizing my investments. I recently had a talk with a friend about gold and did some research. BullionVault.com, etc.

What suggestions, tips or recommendations would you make?

[ExecutiveIncome2You]

I would recommend choosing the best broker. There are many out there but do independent research & ask people who have traded with several which is best. This could save you a lot of money in the future.

[startrader]

You would recommend a broker?

Why not just do it myself on BullionVault.com for example?

I'd really like to get feedback on that. Has anyone had this experience?

[VorloN]

Never dealt with BullionVault.com find it a bit complicated.

My personal choice would be GoldMoney.com or e-dinar.com

[Retired]

Buy physical gold bullion. Check your local VAT laws to see if there are any penalties. For example, 22 karat may have penalties that don't apply to 24 karat gold. Every country is different. Try to buy anonymously with cash at a local coin shop. If that's not possible, buy from a reputable online dealer. If you live in the US, Tulving.com usually has the best deals and the fastest shipping. They're by far my favorite. If you can afford the minimum order, go for it. (But keep in mind that Hannes is very curt in his communication. Don't take it personally.) APMEX.com and bulliondirect.com are good, too.

I suggest sticking to common gold bullion like Krugerrands, Eagles, Maples, Kangeroos/Nuggets, British Sovereigns, or any of the gold bars by Engelhard, Johnson Matthey, Heraeus, PAMP, or CreditSuisse.

You can never go wrong with pre-33 US gold. If the price is right, buy it!

Don't get conned into paying for dubious numismatic coins or a fancy display case. Get the most gold for your money.

Don't buy tael or bhat gold unless you are familiar with the seller. Many Asian countries prohibit the export of high karat bullion.

Don't mention to anyone that you have gold. Keep it safe. Loose lips sink ships. Remember that!

If you want allocated gold that's held in your name, I recommend goldmoney.com. I have an account with them and have been VERY pleased so far.

www.anglofareast.com is excellent, too. That's where the big boys keep their gold.

I've never dealt with e-dinar or bullionvault, so I can't vouch for them. Although for what it's worth, I've never heard anything bad about them, either.

If you have greater risk tolerance and don't mind unallocated gold, you can always open a pool account at kitco.com or invest in an ETF. Personally, I don't like the ETFs, but some people do.

Mining stocks are a can of worms I'll save for another time.

Don't let the ups and downs of the spot price panic you. Gold actually isn't that volatile, but it just appears that way because everything else is volatile relative to gold. Gold has seen year on year gains and outperformed the stock market for 7 straight years.

And as always, do your research!

[startrader]

Wow that is some decent feedback, Retired!

Thank you very much for taking the time to give this to me.

[jmt17]

Not sure what stocks you were in prior to the downturn, but junior gold equities have returned nicely and depending on you macro outlook could separate themselves from other resource equities; the cash crunch will result in many gold miners changing hands, according to the Stock Research Portal: “There is little doubt gold mining companies with significant net cash balances are going to behave opportunistically in the coming period.” Specifically: “Exploration companies without cash but with resources and/or reserves and interesting further exploration potential are potential acquisition targets.” They are also a cheaper way to gain exposure to gold without having to enter ETF's which may, or may not have their entire fund backed by gold as they say they do. good luck

[Retired]

I agree completely with jmt17.

IMHO, If one already has a comfortable amount of physical gold, then investing in mining companies is a great idea. The juniors and the majors both have tremendous potential to lead the markets over the next few years. During the Great Depression, gold mining stocks outperformed every other sector of the stock market. Having physical gold is like having insurance, but owning mining shares is a genuine investment.

[jmt17]

I think a lot of ETFs are legit and covered but it only takes one caught cheating to ruin it for the entire industry which will hurt holders in any gold ETF. Interestingly enough, here's an article I read after my previous statement; John Embry, described as “one of the leading gold investors in the world,” tells SeekingAlpha.com that gold and silver are “the ultimate insurance policy.” (http://seekingalpha.com/article/1253...surance-policy) Notwithstanding that, “He is concerned that as he sees it there is what he calls ‘wiggle room’ in some of the gold ETF prospectuses; he wonders if some of the ETFs (including the largest, GLD) could be using paper derivative types of products instead of physical gold to back the stock.” Embry “thinks there are better vehicles than ETFs.” Unfortunately, “He doesn’t specify which these are.”

[teenwolf41]

You can just buy the gold ETF GLD. It tracks the way Gold moves.