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Posted: 8/28/2004 3:52:32 PM EDT
[Last Edit: 8/28/2004 3:55:08 PM EDT by pale_pony]
I know that the price of gold varies inversely to the value of the dollar, (dollar is up, gold is down, and vice versa) but does anyone here have any experience with investing in gold? Recommendations either good or bad? And if good, where is a good place to trade?

Edited to add: If Kerry gets elected, I think that inflation is going to go through the roof on a biblical scale unseen since the Carter administration. (I'm talking home 18% mortgage rates again, IMHO.) Would gold be a good hedge against inflation and a devalued dollar?
Link Posted: 8/28/2004 3:55:26 PM EDT
[Last Edit: 8/28/2004 4:03:07 PM EDT by ScrubJ]
Link Posted: 8/28/2004 4:24:52 PM EDT
[Last Edit: 8/28/2004 4:27:21 PM EDT by raven]
Inflation wont go up drastically under Kerry. He wouldn't have any control over that. It's the Federal Reserve, a relatively politically independent private corporation that controls the money supply of the US and hence inflation. But there will be inflation, and that adds up after time, to the point a dollar is worth maybe half what it was worth just 25 years ago (I'd have to check for the exact difference). Whereas, an ounce of gold purchases about the same amount of goods an ounce of gold did a hundred years ago. It's a very stable form of wealth, but the drawback is that it generates no income.

If you want to transfer a share of your assets into gold, I think the best way is through www.goldmoney.com Very low transaction costs, you can buy gold by the gram, not just the troy ounce. It's strength (security, low transaction costs) is also it's weakness: your GoldMoney gold is held in trust in a vault in London and you will never see it or hold it in your hand.
Link Posted: 8/28/2004 4:26:10 PM EDT
Yes don't do it.
Link Posted: 8/28/2004 4:31:06 PM EDT
As with any investment, if you have any existing debt that has high interest, such as 10 to 21 percent, to include credit cards or perhaps car loans, student loans, you name it, it is a better investment to pay off your debt than to play with any investments.
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