Friday 12 September 2008

When is investing in gold and silver not investing in gold and silver?

I just saw a fresh review of the book on Amazon. While I am slightly disappointed "Grasshopper" wasn't a fan, and I do apologise, I am grateful to those people who contacted me thanking me for an insight into an alternative world of hard currency that most people have never known existed. Given that spread betting and options are, as most experienced gold investors would agree, investments on the price of Gold or Silver over a given timeframe, rather than an investment on the long-term value of the metal itself, only a short amount of page space was required to explain them. Reading between the lines, you'll see that my only real recommendations are gold bullion coins (preferably sovereigns although that's because I live in the UK), or a trusted internet gold supplier such as Goldmoney, where you can access your gold and spend it from any location worldwide.

When it comes to Gold mining stocks, I agree the returns can be explosive, but they are very exposed to the vagaries of governments, who during a crisis will probably stop at nothing to confiscate assets, etc. and when you look at ETFs and Perth Mint certificates, there are rumours that the gold and silver behind them is not as real as it could be, if you know what I mean. Even more galling when you consider the storage fees often charged.