Reply To: investing in gold

well the problem with diamond is that its inherently worth very little. the price is regulated by one specific interest which holds a monopoly over the diamond market as a whole. thats not ideal. i dont mind leaving the money in there for a while and the money is essentially disposable. its this or atlantic city…except that atlantic city is way more risky and this takes a lot longer 😛

essentially what this is going to be is (one way of putting it is exchanging currency for gold) a way of backing my savings. im not looking to strike it rich. gold looks like a nice way of A) maintaining the value of what i put in over a long term and B) probably give me a nice return on the investment. not the biggest…but more than i can get in a CD or a money market et al. mutual funds are off the table for me because they depend on too many variables.

as far as diversity goes…i dont have enough money to diversify yet 😛 i may eventually branch out but right now i think this is a good place to start.

i also dont have enough for physical gold or bullion, but i do have enough for shares in gold or bullion (ETF essentially.) perhaps if i have enough $$$ down the line i may change that…but for now ETF it is. (GLD specifically. its what ive been looking at for a while already.)

soliekyea…i made an ameritrade account. im not starting yet because i still wanna do some more research but i think this is the way im going.

and shmoel: heres the thing. gold can indeed tumble in price but it always self regulates. its not finite. if a corporation tanks then its gone. people who invested lets say in worldcom got screwed because once it went down it stayed down. gold and precious metals in general (although some are WAY more volatile than others) dont have that issue.