Gold Market
I have a distant friend that insists I invest money in the Gold Market. She supposedly knows a great deal about it. However, I know virtually know nothing. But she says with her experience she will be able to guide me and I will make money. I have my doubts but what do you think Terry. Is this a legitimate investment tool?I have the money but that doesn’t mean I have to throw the money away either. Thank you.
Terry Says
Let me start by giving my initial reaction here. If your friend is so smart why isn’t she investing her own money in this market? And if she is, ask her to show you her track record!!
Gold is a “market” — and there are many ways to “invest” in gold. You can buy gold stocks — the most popular one tracks the price of bullion on an instantaneous basis and it’s symbol is GLD.
You can buy gold mining company shares in mutual funds offered by the major fund companies like Vanguard and Fidelity.
You can speculate in futures, and accelerate your risk.
But one thing is required to be successful at trading gold — a good sense of the price direction. And gold has recently been a very volatile market– GLD stock has traded between 150 and 191 so far this year.
The price of gold has swung between a low of $1811 per ounce and $2050 per ounce in just the past 6 month!
That leaves plenty of room to make — or LOSE — money if your timing is bad.
Over the long run, gold has historically been an offset to inflation. But that hasn’t worked well in recent years, so don’t count on it.
Do your homework. Spend some time at this website to learn more about gold in all its forms:
https://www.kitco.com/
