What's the best way to invest in metals against inflation and dollar devaluation? Silver or Gold, bullion coin?

Where's a good place to buy that's safe. I was looking at Monex, but I have no idea about this.

Public Comments

1. Gold coins are good but I like the stock market. Check out the gold etf. (Symbol, GLD) This, in mine and others' opinion, is the best way to play the metals.
2. I wouldn't buy any of it right now. If you've noticed, there are commercials all over TV right now saying, "Buy our gold!" and "Buy our silver!" Doesn't that seem a bit suspicious? If companies like Monex know that the price of gold and silver will continue rising (like they claim it will), why would they try to sell it? The truth is, precious metals inflate and deflate like anything else on the commodities market. Because metals often do well during recessions, gold and silver are at record highs right now, BUT the economy is showing signs of improving, which will very likely lead to a drop in the price. All companies like Monex are doing is practicing the age old idea of buy low and sell high.
3. I agree with the other responder that suggested GLD. Each share is actually 1/10 ounce of gold minus fees and expenses of about 0.4% annually. And the bid/ask spread is minuscule compared to that of the physical stuff. SLV is the silver equivalent. Monex does have a good reputation and they have been around a while. One of the problems with owning the physical metal is where are you going to store it. The only safe place is a bank vault despite what you see in the movies. Silver is more of a problem to store than gold is. You can easily store a 400 ounce bar of gold in the smallest of safe deposit boxes. The equivalent value of silver will require several large boxes. Another alternative is to purchase stock in the mining companies. The advantage of doing so is this. They have a certain fixed cost structure so every dollar increase in the price of gold or silver pretty much drops right to the bottom line of their income statement. The leverage of the more marginal producers that this produces can be extremely great and translate into very large increases in eps. Generally, those that do invest in gold and silver only place a small percentage of their holdings into mining companies because there is more risk in doing so, but the rewards can be much more significant.
4. Try some banks. I know in Canada, most banks deal and sell gold at the counter. They usually don't have as high a fee. You can also consider a certificate. THey are sold by some banks which give you claim to gold or silver they hold in a vault for you. This allows you to not have to hold onto the physical metal and keeps it safe in the bank's vault. Avoid foreign exchange counters, coin dealers etc. They usually tack a premium to their product line. From an investment point of view however, I suggest avoiding physical metal. From a historical view, Gold and Silver have not given much return over time. In fact, this is why Switzerland has slowly gotten rid of their gold and silver backing of their currency because the gold and silver they held onto had very little return. If you want exposure, but through increased profits and dividends and higher return with LESS FEES, try investing in shares that deal with gold. Elem-fin has already suggested GLD which holds companies dealing with gold. You can invest directly in Kinross Gold or Barrick Gold. These companies are very reliable, and their stock follows prices. I would also suggest oil or petroleum. In the mean time, oil prices seem to have a bigger bang up ahead rather than gold.
5. First one should be aware of that Gold, or any commodity or precious metal is not a "safe" investment. Safety implies that there is no risk. Gold is very volatile, there is no one backing the value, and there are no industrial uses for gold. Thus it is a speculators tool. I call it the "fear trade." When people think the sky is falling, they run to gold. The sky hasn't fallen since THE meteor took out the Dinosaurs. http://www.foxnews.com/story/0,2933,232898,00.html http://geo.arc.nasa.gov/sge/jskiles/fliers/all_flier_prose/meteor_impact_duller/meteor_duller.html Gold (ETF: GLD) might be an idea for a trade or used as a trading vehicle, but long term gold has historically been the 2nd worst investment after non-industrial diamonds (Chase Investment Performance Digest). If you want safety, FDIC insured CD's or US Treasuries are the lowest risk investments. If you are looking for "principle safety" to hedge against inflation, the only investment that can meet that definition would be "Treasury Inflation-Protected Securities (TIPS)." http://www.treasurydirect.gov/indiv/products/prod_tips_glance.htm Right now, the market has moved away from the inflation trade and is focusing on deflation or stagflation again. This is why GLD is a trading vehicle more than an investment. Longer term, would prefer to look at TIPS for part but not all of my money. Good Luck.
6. silver bullion is a better bet for a greater percentage gain if you look at the movement of the metals. it's really beat up right now. just buy a 100 oz bar of silver, maybe more. and hold it. buy it wherever you want, but be a stickler for price by dividing the amount you're buying by the number of ounces and then multiplying that by the spot price per ounce of the metal. Don't buy anything with too high of a premium over spot, and don't bother with mint marked or collectibles - you're looking for scrap. cheers. you're smarter than most americans.