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Ask HN: How does one actually buy gold

7 points by josh33 ↗ HN
Not being an experienced investor of any sort, the more I read about precious metals and elements, the more it seems like it is time to invest in some as a hedge against future inflation. My opinion is being shaped to first value basic necessities like food, shelter, clothing, and water.

After storing up some of these items, what would be the best way to hedge against the dollar and invest in gold? How do you actually buy bullion?

It seems like a lot of the investments touted today in gold or silver are really just investments in some market security or bet on the price of gold.

9 comments

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noonespecial
If you want real metal, your best bet is probably US Mint "gold eagle" coins.

http://www.usmint.gov/mint_programs/?action=american_eagles

You can also by stocks (in a gold mining company) or futures in a commodity market. There's also a dizzying number of derivatives.

I gotta say though, its far from a certainty that now (or any time) is a "good" time to buy gold. Its just a commodity (and not a particularly useful one) that has some elements of currency because of its relative scarcity. It can suffer a plunge in value from a crisis in confidence like any other currency. It seems like a good bet against inflation, but if you took that bet in 1980 (the last historic high driven by inflation fears) you didn't recover until 2007!

If you want a precious metals hedge, getting some silver (low value, easy to trade) or some platinum (actually useful for many things as well as valuable) wouldn't be a bad idea.

One final thought, it is good to value food, shelter and clothing, but don't forget tools and weapons. If you get to the point where your food and clothes are a deciding factor, a good saw and a strong, sharp knife will be just as precious.

viggity
Yeah, I've always opted to invest in precious metals: lead and brass.
fexl
That's performed especially well recently.
[dead] envitar
“It gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.” – Warren Buffett
keefe
there's something to be said for buying property
yalurker
Historically, by the time inexperienced retail investors are hearing/thinking/talking about an investment, all the profit to be made is gone.

When everyone was flipping houses every 6 months, that signaled the end of the housing bubble. When everyone was buying dot com IPOs, that was the end of the internet bubble. By the time Glen Beck is telling every Fox News viewer to buy gold...

My point isn't to tell you what is, or isn't a good investment. Just pointing out that a little bit of knowledge can be a dangerous thing when investing.

[dead] joeycfan
Don't buy it at the Toronto Airport.

Vendor there was selling 1/25 oz coins for $120 Cdn - that's $3,000 / oz.

It's not supposed to get that expensive until this time next year!