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Best way to make profits by investing in Gold?

erni

erni

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Jul 18, 2020
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#1
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Can some of you tell me what you think is the best strategy to invest in Gold?

I mean, is it better to buy physical Gold rather then Gold stored in a Vault in Singapore or similar places? Would you buy Gold by your bank or what is your strategy?
 
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#2
What is more important to you,

1. Security
2. Maximized gains

?

Buy physical if security. Store it yourself until you can get a good bargain on storage fees. Less than 10 kilos - store every ounce in home; 25 kilos and more - vault gets more attractive. With low amounts, storage fees aren't that good.

For maximized gains and speculation, ignore the metal and buy gold miner stocks instead. Hypothetically, if you have insider information that the German Central Bank is to buy 25 tons of gold over night, you're realistically eyeing 10-25% gains over 1 week while holding the metal. But about 50-200% gains over 1 week while holding gold mining stocks instead. Downside is the obvious downside.
 
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#3
xzars said:
realistically eyeing 10-25% gains over 1 week while holding the metal. But about 50-200% gains over 1 week while holding gold mining stocks instead.
Click to expand...
that's an awesome advise... you are a genius, thank you. I will max have option to buy 2 kilo Gold by now, so your first suggest to buy it physical is good. Maybe I will split 1 KG in real Gold and 1 KG in stocks.
 
#4
The best way to make money by trading in gold is by shorting it, not yet but very soon. Look what happened in 2009: All the way down from 1900 to 1000
 
#5
When you say shorting it, how would you go about it. Looking at the last 20 years history the Gold price only goes up never goes down.. I'm not a professional trader that's why my question may be stupid?
 
#7
1596197094641.webp

After US elections and vaccines for Covid are ready, everything will start to normalize and many people will realise that they bought gold too high while other will take profits. During the GFC many private jets (many from Japan) where fliying to Hong Kong loaded with gold bars with no questions asked, now you need to declare it and pass the AML, so Gold it's not what it used to be. I think Bitcoin would be more interesting
 
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#9
Both of the last replies make sense, but how do I have to read the below then (RED ARROW)
gold-price-last-20years.webp


I must be confused by somethinghi%#
 
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#10
It depends the starting date (max drawdown are not specified).

It´s the same for BTC. For a person who invested in the end of 2017 when 1 btc = 19k usd, this investment is horrible to this day.
 
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#11
Okay that makes sense, but if you look at a period of 20 years like shown in the image I posted then no one made any lost if they sell today, since it has risen over this period.
 
#13
That's a much better chart! Now it makes even more sense. But still it is difficult to predict the future. Only thing we know is that Gold is a limited resource and more want to get their fingers on it.
 
#14
celizo said:
It depends the starting date (max drawdown are not specified).

It´s the same for BTC. For a person who invested in the end of 2017 when 1 btc = 19k usd, this investment is horrible to this day.
Click to expand...
Agree. Compare also with Apple, Tesla, Google, Amazon +2000%
 
#15
1596512234534.webp


Looking back on the trend
 
#16
I have also thought about buying gold. My problem is that I don’t have a home... So I’ve been thinking about paying for storage. And while I’ve been thinking, the price has kept rising and now I’m not so sure anymore, lol.

I could buy the gold and store it at my parents’ place, but then there’s the risk with having to declare it at customs - and I guess the important thing with physical gold is that nobody must know that you have it?
 
#17
How about storing it in a vault? Or a company that is happy to store under your name?
 
#18
Yes, I’ve been thinking about storing it in a vault. I’m just not interested in buying huge amounts, more like $20k-$50k.
But maybe I should just wait for the price to drop again or invest into mining stocks...
 
#19
JustAnotherNomad said:
Yes, I’ve been thinking about storing it in a vault. I’m just not interested in buying huge amounts, more like $20k-$50k.
But maybe I should just wait for the price to drop again or invest into mining stocks...
Click to expand...

Let the price retrace a little. If history and technicals show it the price is overstretched right now in bullish trend due to Covid 19, us economy etc. US govt is trying its best but somehow due to natural disaster nothing it's doing is helping except a rise stock prices but it's debt is rising. Forex, commodities are trading gold trying to short it as per technicals but fundamentally it can't be in short due to a strong fundamental reason. Fiat currents can't match gold. Situation is more desperate as cryptos have joined gold, silver too now.
 
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#20
lory said:
that's an awesome advise... you are a genius, thank you. I will max have option to buy 2 kilo Gold by now, so your first suggest to buy it physical is good. Maybe I will split 1 KG in real Gold and 1 KG in stocks.
Click to expand...
You can always hedge your exposure:

buy 1KG worth of value at Aurilia.io in CGold form factor, which is digital gold certificates,CGOLD TOKENS (one CGOLD represents 1 gram of LBMA Good delivery Gold).

This way you remove the need for physical storage although there are many third party storage facilities like liemeta.li in Liechtenstein, that you can store up to 20kg of goods in a safe deposit box only for 350CHF/year.

The other remaining value of 1KG you can deposit in a trading platform, that let’s you not only speculate on the price but also deposit and withdraw, exchange gold to fiat within the same platform.

this way you can maximize your investment and minimize your exposure.
 
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