<p>Just want to hear some advice off here. Which method to invest seems to be the best? Which vehicle results the lowest tax (I absolutely hate governments taxing on capital gains; Hong Kong, my hometown, has no capital gain tax and yet, it’s still more efficiently run…lol…sorry, just have to rant)?? I am very new to this.</p>
<p>One more thing: I plan to hold it for at least a year.</p>
<p>Sam, good luck… look at the histories of metals and the market… when metals drops… it’s a long way to the bottom. fast,… I guess I would ask how much gold as a percentage of your portfoilio do you plan to hold? A one year horizion alot could happen both good and bad… </p>
<p>Also curiously enough wouldn’t this question be better answered on an investment website?</p>
<p>yea…i guess…but the parents here seem to know a lot too. ;)</p>
<p>In general, gold moves inverse with the dollar. If you expect the dollar to weaken in the long run, then gold is a good investment. If you expect the dollar to stabalize or rise, then gold is not such a good investment. How you wish to invest in gold depends on how much money you have to invest. If you have only a little bit of money such as a few hundred dollars then you can invest in stocks. If you have a few thousand dollars then your options include stocks and mutual funds. If you have a lot more, then you can invest in gold bullion. I would stay away from gold coins since their value depends on both the price of gold and the rarely of the coin which is often difficult to determine. </p>
<p>I am not sure I would invest in gold at this point. A stock that mines many metals including gold might be a better choice. With metals, I prefer stocks with dividends. If you choose to focus on the dividend, don’t forget to look at the payout ratio. If you don’t know what the payout ratio is, you are not ready to invest in dividend paying stocks.</p>
<p>As to taxes, etc., I would not invest based solely on trying to avoid taxes. I would invest based on what I think would be the best total return after factoring in the effect of taxes.</p>
<p>I invested in gold and commodities in the early 80’s. I second gold mines stocks vs gold bullions. I think it goes up twice as much. As for avoiding tax, if you hold something for more than a year, you will pay lower capital gain rate. ETFs for precious metals are the best way to invest for tax defer purposed becauseyou don’t have to pay for dividends yearly, while mutual fund and stocks pay dividends yearly. You pay for capital gain when you sell.
As far as this the right time to buy gold. I don’t have any advice.</p>
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<p>I second the above advice. </p>
<p>Did you see this link?</p>
<p>[On</a> Trading vs. Holding Precious Metals (ETFs: DBC, GLD, IAU, SLV) - Seeking Alpha](<a href=“On Trading vs. Holding Precious Metals (ETFs: DBC, GLD, IAU, SLV) | Seeking Alpha”>On Trading vs. Holding Precious Metals (ETFs: DBC, GLD, IAU, SLV) | Seeking Alpha)</p>
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<p>I forgot about ETFs (Exchange Traded Funds). They are definately worth looking into. </p>
<p>BTW, I love the Seeking Alpha site. One can find great ideas there, but like all investment opinions some are great and some are really rotten. Buyer beware.</p>
<p>Gold is like having kids. </p>
<p>(Kids is like having gold)</p>
<p>not sure which is more applicable.</p>
<p>thanks for all the comments so far!!</p>
<p>i’ve done more research and decided not to go for gold.</p>
<p>^, if not gold, What?</p>