What is the best vehicle to invest in gold ?
Answers
989 points
rvilmur answered 10 months ago …
I would look at a company with the U.S. symbol EDVMF.PK or EDV.TO. This company does financing and financing advice for small mining companies. When gold pops higher due to government money mismanagement, this company will prosper as it takes positions in many of the small mining companies.
If you see that it pays a monthly dividend in your research, ignore that in your thinking as it has just been suspended as Endeavour Mining Capital waits for better times.
265 points
fuzball answered 10 months ago …
I agree with Anoption. Study the small cap gold miners. Shares in them, and all good gold mine stocks, will appreciate many fold above the metal market price if they prove out to become productive. Big money has been made in gold small caps in the past. Just do your "due diligence" or go with a good advisor in the field.
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197 points
whiteshadow204 answered 10 months ago …
NYSE: GLD
The SPDR Gold ETF. Saves you the trouble of burying your coins/bullion in the back yard. You can also sell covered calls for income, which eliminates the one major negative to owning gold.
731 points
thinker70 answered 9 months ago …
There is no ONE BEST way: Just as most analysts advise diversification of a portfolio between fixed income investment, stocks, real estate etc. the same criteria applies to someone investing in gold, DIVERSIFY!
Broaden you category to "precious metals" and chances are Silver for one will produce even bigger returns than Gold!
A definitive answer to your question is not possible without knowing your level of expertise, amount of capital etc. but some of the things you could look at for the most immediate profits is major producers such as Agnico-Eagle, Barrick, Goldcorp, Kinross, Yamana etc. If you have limited capital or don't want to do the research to make one or two choices then you could buy the Market Vectors Gold Miners ETF that invests in about 20 companies.
Th Central Fund of Canada invests in BOTH Gold and Silver and fluctuates with the price of both metals but is tops for safety. The more profitable LONG TERM investment would be in the Juniors where the criteria is good management, proven reserves, lots of working capital or access to it, but again if you do not want to the necessary research then invest with a professional who knows the market and the players and my choice would be Sprotts Gold and Precious Minerals fund, an organization that finances the most promising explorers.
Another lower risk category to look at is royalty companies who advance funds to develop a mine based on proven reserves in return for a royalty on every ounce mined, this could be VERY profitable on the long term with much lower risk than explorers that have little more than "moose pasture" and hope of finding a viable deposit!
