any gold investors out there?

Miscellaneous General
1

I’m curious if anyone has been purchasing gold recently with the assumption that hyper-inflation is a real possibility. This piece by Robert Higgs is a bit disconcerting:

http://www.independent.org/blog/?p=778

If so, any advice on where to purchase it from (is egold.com a reliable source?) or what your investment strategy is these days? Thanks.

2

I bought some gold through Pecunix a few months ago. I wouldn’t recommend e-gold, they’re based in US and the police has been giving them some hard time, to the extent that exchange rates have gone through the roof (I’ve seen 40-50% fees on some exchange sites). Generally, anything based in a tax haven sounds better than US.

You could also consider buying physical gold at near-spot prices from regular dealers (perhaps Kitco) if you’re in for larger quantities, let’s say more than a couple of ounces (although they probably deal for less). The downside is you can’t buy other stuff using that gold (although there aren’t many online shops that take digital gold currencies) and AFAIK they’ll have to ship it to you.

And hyperinflation isn’t the only possibility. If this is accurate, COMEX might be in trouble and the dollar too.

However, my advice is you should look for a mid/long term investment. That is, don’t assume you will gain by buying and selling after 1-2 months. Some time after I got mine, the prices gradually fell by about $150/oz, but now it levelled back up again. At any rate, at least when playing with small amounts of money, this isn’t like the stock market: don’t count on being able to time your actions precisely.

3

Gold is a part of any good portfolio. However given current conditions gold is poised to explode. Gold is a great hedge against inflation, even hyperinflation. When the move from dollars to gold takes place, gold will not only keep its value it will spike. As more people want to hold gold the real price of gold will increase. You will not just see a gain in golod versus us dollars but in all currencies. Really it will be the reverse of what is happening with the dollar right now.

4

I believe the part about hedging is pretty accurate.

Here you can find some live charts of gold spot prices.

5

Yes, I also bought gold through Pecinix. But even if you cannot afford to get alot of gold, silver is at about 10 dollars an ounce right now and is a good alternative.