Australian Money Forum

[GTR]

Good evening,
I am thinking about taking my savings out of the bank and converting to gold. Is this a wise move, if so, what is the easiest and safest way to do this.

Regards,

GTR

[rsingh79]

Not sure about whats the right time is to buy Gold! As it went up 2 weeks back and have lost around 10-15% since then. (I am talking from the gold warrants prospective). The easiest way that i could find to invest in gold was through buying Perth Mint Gold Warrants which are traded in ASX under ZAUWBA symbol.

Good luck!

[Miller]

Gold is at 12-13 month low... Looks like a good time to buy some.

You can buy it in two ways:

1. ETF - Exchange-traded fund. ZAUWBA ia a good example.
2. From a precious metal dealer. I used to buy from http://www.ausbullion.com.au/

I don't agree with those who say ETF is not safe and regard it as another form of fiat money. If it gets so bad (say $10,000/ounce) that ETFs start disregarding official gold price then I guess this will be a sign that lead is about to become the most common metal...

[Stucke]

Yes, buying gold is a wise move to my mind. I do this by investing into e-currencies backed up by gold, such as Liberty Reserve and pecunix. e-forexgold.com exchanger is good for this, they have many funding options for Australians.

[wulfgar]

Currently no body is net borrowing from the FED funds window. Which means no growth in the quantity of USD in circulation. Although considerable amounts of temporary funds were created via Central Bank swaps.
The most important element in the gold price right now is the Fed interest rate. Jewelery gold demand is price driven. And determined by the quantity of currency in circulation. Investor gold doesn't behave like a commodity, but rather like money. It behaves similar to bonds and is affected greatly by interest rates.

As the Fed cuts rates, this will drive gold up. But that gets a bit difficult now with primary rate at 0.5%.

However there is the question of the 1,000 tons stored for the EFT's can be accessed and dumped on the market. If so, we could see a big drop in gold. It wouldn't last more than a year however and would be a great buying opportunity.

[judithscott]

Silver is good choice for investment.

[wulfgar]

Silver is more speculative than gold, hence gold is the better monetary commodity. The thing with gold is the huge demand for what is available.

Of the two gold is the choice to use as an alternative to a savings account. However this is precisely the point in the long PM cycle that a punt on silver may return much better than gold in the next 3 years. Quite possibly like in the last boom silver will move from about 70 to 1 gold back to the traditional 15 to 1 gold for a short while.

[wulfgar]

i'm never going near gold again... it hurt me, hurt me bad. lost a few dollars, damn it!

but if yur still thinking about buying in gold, research research research, then ask more questions and do more research

Well I wouldn't recommend shorting the dollar, going into debt to buy gold. My recommendation has always to put savings in gold in preference to CD's and bonds. The banks are no longer safe, I'm predicting savings accounts to be frozen within the next 2 or 3 years.

I expect gold to reach $2400 around 2013 and zoom up to $3,000. And that to be it's trading range for a few years.

But...........if a powerful Central Bank hoards gold to prevent the market using it as money, then gold will head to $5,000 to $7,500.

Gold at the moment is simply fair value but that won't stop it bubbling for another 3 years.

The important thing with gold is not just value, it is liquidity. Gold is always liquid come rain or shine. It's that feature which makes useful for savings.

[marrabel]

I have doubts as for silver, but what about gold then it is very wise decision to realize in life. Why? Because it is well-known that all rare metals are always demanded and always have the high price!

[wulfgar]

I reckon if there's any time to buy silver it will be over next couple of years. If it repeats what it did in the 70's, then you'll be looking at $300 an ounce or even more, but silver falls hard off a peak. Only put longer term savings in silver, money you may need to access at any moment is better in old faithful yellow.