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Author: reddir Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 113  
Subject: Investing in Gold Date: 3/11/2009 5:53 PM
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Greetings,

I am looking at investing in Gold and am wondering what the best way to invest in bullion is, other than buying and receiving physical gold.

I had thought GLD was a good way (and SLV for silver), but recently I have been reading that the fund(s) might not be entirely invested in physical bullion, instead using futures etc.

Do you have any thoughts on this?

I found 2 funds, CEF and GTU that seem to indicate they invest at least 95% in bullion. However they each seem to be trading at premiums to the price of bullion, 13.2% and 22.2% respectively.

Are these good vehicles for investing in actual bullion? Are the premiums on the above two simply the 'cost of doing business'? Are there better options available?

Thank you for any help,
Hari Bol
reddir
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Author: c0ffeen0te Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 109 of 113
Subject: Re: Investing in Gold Date: 5/3/2009 9:07 PM
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Don't have anything specific but you might investigate the gold mining companies...I did this once years ago

(ended in tears)

Good luck

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Author: reddir Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 110 of 113
Subject: Re: Investing in Gold Date: 5/4/2009 7:40 PM
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Thank you for replying :) , I had thought the topic was not followed.

My inclination is to stay away from the mining stocks, only because I believe that compared to GLD/SLV or bullion funds they are much more complicated, and that I am not experienced/educated enough to have a proper understanding of how they will function over time.

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Author: katinga Big funky green star, 20000 posts Old School Fool Ticker Guide Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 111 of 113
Subject: Re: Investing in Gold Date: 5/5/2009 9:46 AM
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I invest in DBC, a commodities ETF that has a 10% gold position, plus positions in both refined and crude oil, two metals, and two grains, IIRC. I also invest in energy and non-energy natural resources stock ETFs, about in equal weighting with DBC.

Deutsche Bank also has ETFs that reflect the major components of DBC, in case you want to do the asset balancing yourself.

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Author: reddir Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 112 of 113
Subject: Re: Investing in Gold Date: 5/5/2009 9:47 PM
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I like the Deutshe Bank ETFs. I am using DBO for exposure to oil, and DBA for agricultural.

I don't know what might happen to oil, or even gold, but I don't see how agricultural won't go up over time...unless we have plague or massive war.

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Author: katinga Big funky green star, 20000 posts Old School Fool Ticker Guide Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 113 of 113
Subject: Re: Investing in Gold Date: 5/7/2009 11:48 AM
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High food prices are almost always man-made. Grains took off when energy prices were up due to fuels needed to plant and harvest, and ethanol production reduced food crop acreage. To that extent, food prices are a proxy for fuel prices.

However, crop disease pandemics and weather problems can also have an effect on supply, so you can see that food prices can get out of step with respect to other commodities.

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