Thursday, January 31, 2013

5 Typical Mistakes with Gold Investments

Axel Merk has published a new whitepaper entitled "Fools Gold: Five
Common Mistakes with Gold Investment" that deals with poor Gold investments decision or understanding.

5 investment advices are summarized below:
  1. Gold Stocks Ain’t Gold - Gold mining stocks, on aggregate, have significantly underperformed the price of gold.
  2.  There is Only One Real Thing - Other precious metals, including silver, may not perform as well as gold in times of economic duress.
  3. Beware of Premium Over Spot - Make a note of the spot price of gold per Troy ounce, so that you can calculate the premium the dealer is asking for (be sure to include any delivery, administrative, insurance, or related fees) before making a final decision
  4. Don’t Overlook the Expenses - Before you buy physical gold, you have to carefully consider the related storage and insurance costs.
  5. Make Sure Gold is Really There -  If you buy a Gold ETF make sure to read the prospetus, and be wary of large amount of "unallocated gold", and the ability to lease gold.

The full report is available for download on Merk Funds website.

1 comment:

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