SA Footy

I'm interested in buying some gold (through precious metal market?), in the hope that it will increase in value (obviously).

Has anyone here done it?

Who did you go to, and what kind of fees/charges are involved?

Is there a minimum weight of gold you have to buy/sell at a time?

Sploosh,

Not a bad idea to look at the gold market. Gold has pretty much tripled since the year 2000 and fundamentally it may continue its bullish ways.

If you are considering purchasing gold it may be worth looking into the futures market. Futures are a way toget into the gold market in a simple and efficient way. There is no issue with ownership of the physical commodity (gold) or the storage of the bullion which reduces possible outlays. Also it is possible to sell out of your position shall the market turn against you.

It is well worth reading up on gold futures if you are considering buying gold, as there is no real reason to purchase the physical gold when there are opportunities to make healthy profits by investing in gold futures.

Buying the Spandau Ballett and John Stewart classic vynils is an investment of sorts

Perhaps no other market in the world has the universal appeal of the gold market. For centuries, gold has been coveted for its unique blend of rarity, beauty, and near indestructibility. Nations have embraced gold as a store of wealth and a medium of international exchange, and individuals have sought to possess gold as insurance against the day-to-day uncertainties of paper money. Gold is also a vital industrial metal – it’s an excellent conductor of electricity, is extremely resistant to corrosion, and is one of the most chemically stable of the elements, making it critically important in electronics and other high-tech applications.

Trading in gold futures and options provides individual investors with an easy and convenient alternative to traditional means of investing in gold, such as bullion, coins, and mining stocks. In addition, a broad cross-section of companies in the gold industry, from mining companies to fabricators of finished products, can use gold futures and options contracts to hedge their price risk.

At optionsXpress Australia, we offer gold futures trading at two different exchanges. The COMEX Division of the New York Mercantile Exchange and the Chicago Board of Trade’s eCBOT electronic system.

COMEX Gold Futures Specifications
Gold futures, COMEX Division of New York Mercantile Exchange, symbol GC. Minimum Tick Size: $0.10 per troy ounce, worth $10.00 per contract.
Electronic trading is conducted from 6:00 PM US until 5:15 PM US EST via the CME Globex® trading platform, Sunday through Friday.
Primary Trading Months: February, April, June, August, October, and December. Six other months also trade, but with less volume and open interest.

http://www.optionsxpress.com.au/welcome ... SessionID=

Ron Burgundy wrote:
If you are considering purchasing gold it may be worth looking into the futures market. Futures are a way toget into the gold market in a simple and efficient way. There is no issue with ownership of the physical commodity (gold) or the storage of the bullion which reduces possible outlays. Also it is possible to sell out of your position shall the market turn against you.

It is well worth reading up on gold futures if you are considering buying gold, as there is no real reason to purchase the physical gold when there are opportunities to make healthy profits by investing in gold futures.

Thanks for that. Actually, I think that is what I meant... I didn't intend on actually having the (bit of) gold in my place, just the ownership of it somehow. I shall read up on gold futures, thanks again.

I've always been intrigued by the gold market, partly because as a mineral, though not common, it is not all that rare.
It's value is not intrinsic to its usefulness, but is primarily based on its ornamental value although there are some industrial uses.
[I did gold plate some circuit boards back in the days when I built amplifiers.]

I would expect its price to drop some as people regain confidence in the share market, and in the future growth of property values.
A recovery in the US economy, and resultant increased faith in the greenback, could be expected to lower gold prices too.

Forget futures unless you know what you are doing

Jimmy_041 wrote:Forget futures unless you know what you are doing

Based on that criteria, I DEFINITELY need to forget futures.

mal wrote:Buying the Spandau Ballett and John Stewart classic vynils is an investment of sorts

LOL, you're an idiot Mal !!

Jimmy_041 wrote:Forget futures unless you know what you are doing

Completely agree.

Look into this - the shares rise and fall with the price of gold and you can buy the shares on the ASX. The X factor is that you have to watch out for is the USD/AUD exchange rate as this affects the values here. The last time gold hit USD1,000, the AUD was a lot lower and so these shares were a lot higher

Business Summary

ETFS Metal Securities Australia Limited (GOLD, formerly Gold Bullion Limited) is a company that has been created for the purpose of issuing of Gold Bullion Securities, allowing investors to own and trade physical gold bullion through a listed security traded on the ASX.
Gold Bullion Security Structure: Each redeemable preference share has a nominal value of 1/1000th of a cent as which carries with it an entitlement to approximately 1/10th of one fine troy ounce of gold bullion held in the name of the Trustee, Gold Bullion Nominees Pty Ltd. For each Gold Bullion Securities (GBS) on issue there is a corresponding amount of gold held in trust. The gold, to which the holder is entitled, is held by the Custodian Bank (HSBC Bank USA, N.A.) in vaults in London. As at April 17, 2009, a total of 4,306,486 GOLD are on issue.

The Company generated Creation and Redemption fees connected with the issue of and redemption of Gold Bullion Securities and charges holders of outstanding Gold Bullion Securities a Monthly Gold Sales Charge of 0.40% per annum calculated daily on the total ounces of gold held on behalf of the Holders stored in the vaults of the Custodian.

USD1042.70............woohoo

Jimmy_041 wrote:USD1042.70............woohoo

big fella, make me rich.

USD1055.00

Mel's Carri mates had a great idea when I told them to buy gold at USD825 - I lend them the money and when they sell, I get my money back....

Gold prices tend to fluctuate fairly dramatically, but there is a pattern of sorts.
Gold goes up when people lose trust in the alternatives.

When confidence in resource, banking, and commercial stocks is rebuilt, and interest rates rise making cash management investments attractive, the gold price will plummet.
It is currently valued at significantly over its intrinsic value, because people turn to gold on an emotional basis.
When they lose confidence in other forms of investment, or when inflation is pronounced and they feel insecure, they buy gold.
I'll be waiting for the plummet, then look at buying gold before the inflationary spiral [caused by Labor's over-spending] begins.
When interest rates go very high in a vain attempt to combat the inflation, gold will rise dramatically again.

Looking at past experience, I recall the other thing that gained value under the Keating government's inflationary spiral was tax deductions.
Second hand luxury cars went up - and that's when I sold a Porsche for 40% more than I had paid for it four years earlier.
[Right now they are down and you could get a bargain - I notice the Cayman S I didn't buy a few months ago is still sitting in the car yard.]

Sound advice from Psyber, except I would have already bought the Cayman.

From what i have received over the last few days, opinions seem to be mixed on whether gold will continue to rise or fall sharply. One US fund manager doesnt thing the rally is overdone, and doesnt think it will be over until policy makers come to their senses, which is unlikely in the very short term.

But, near record long positions in NY gold futures creates a risk of correction. This being said analysts have called for a correction for quite some time and the bullion has kept rising. In recent history as gold has approach 1000 an ounce there has been a sharp correction, especially with the resurgent dollar but in the end, to a degree, it is just gambling.

In short, gold is currently in interesting territory, I could be upgrading my modest Holden to Psybers Cayman or i could be getting around in my brothers beat up, but legendary, Barina.

dedja wrote:Sound advice from Psyber, except I would have already bought the Cayman.

I'm still reflecting on whether to go in and make them a fairly low cash offer, around half what they are asking, and see what happens....
But then I'd have 3 cars - they wouldn't be interested in a trade in at that point.

USD1067