Dummies guides on Gold Investment (1)
Some of my readers such as blurmommy of Justmyrambling dot com and Jenny How of Jenny How dot com were curious on why I invest in gold and want to know more about it.
I selected a few of my written why, what and how’s articles for your reading pleasure !
Why do I invest in gold :
1.Read him. He knew quite a fair bit.
2. Study history to understand the present and yes Gold !
3. Gold – an alternative ?
4. Malaysian News : Even Malaysia is shifting away from USD.
How do I go about doing it :
1. I read lots of article from the internet about gold investment.
2. I used Kitco dot com to check gold and silver price.
3. I used online trader company called Ameritrade dot com. So far, they have been very reliable in term of system and people respond to my request on anything related to my trading. I had my account with them for more than 5 years now.
4. Before I enter my trade, I had studied that stocks for at least 1 month. I used stockcharts dot com to confirm I am not buying at a premium.
What are some of the stocks I owned :
1. I owned a lot of 1st tier producing companies such as goldcorp (GG), Silver Standard Inc (SSRI); and others. GG is the world biggest gold production company and SSRI is the world biggest silver production company. I bought them when I started investing gold and silver. I bought both of them below $5 and they are hovering betwen $30 and $40 price range respectively now.
But end of last year and this year, I have changed my investment strategy , I am buying a lot junior stock. These are some of the junior stocks I owned and I believe firmly that one day they will be take over targets from 1st tier producing companies. I bought most of them below $1 and some of them below 50cents.
I wrote about these stocks many months back.
The title of the post is called A Month Later
Among all, BWLRF stood tall from the rest. I bought it from 90cents to 1.50, now it is over $3, less than a year period.
I asked one of my girlfriends who is a retire geologist to do a study for me. This is her research paper on BWLRF.
:”One of my girlfriend who resides in New Zealand and is a retired geologist offered her share of geological review on BWLRF. [Please read my disclaimer again and do you own due research before you invest.] I do not own any shares on Breakwater Resource Inc. as the time of writing.
“Based on the company’s report,…”
To read more of Golden Tip (2), here it is.
My investment mentor (yes, I do have a mentor) after reading my girlfriend’s report, he tripled his purchase on BWLRF and he is laughing to the bank now.
I do not use contra, every of the gold and silver stocks I owned are fully paid for. I am a proud share holder of many gold and silver producing companies !
I will continue to write gold and silver investment for you, my readers. I hope you acquired as much wealth as I have for gold and silver investment.
Oh… thanks for the write-up. Will come back & read in detail when my little gal is taking her nap : )
No problem. Ssshhhh. Don’t wake her up
Great post Jamy ! Thanks for sharing
I’ll do my readings whenever I get a chance. Will be looking out for your future gold & silver investment post 
right jamy, have been waiting for post like this! hehe, more more!
I have not read all the links above, but I want to ask is there any minimum amout to invest for gold/silver investment?
And since the price has gone up since then, is it too late to buy now? Like it used to be priced at $4 and now gone up to $40, but will it still go up?
I know there’s no way to tell, but just a general question. Im quite noob(beginner) when it comes to gold, silver & stocks especially, bcos there are so many stocks out there & there’s diff “tools” like hedging, etc etc.
ant,
I think the minimum to open account with tdameritrade.com is US$500. I am not sure if they have changed their policies but you can check their web site and find out more.
When I was an active participant of a Malaysian forum, there are a lot of people who said the same thing like this :”And since the price has gone up since then, is it too late to buy now?”
They said ‘Jamy , you have bought this for a long time, now it is too late.”
No, it is not too late, I believe we still have at least 5-10yrs of golden bull.
But, these are the keys :
a. Every year there will be a depressed gold price, that is consolidation period, then there will be an up time.
If you believe the Indians are the ones who bought the most gold then you have to watch out for their wedding season
b. No matter how times of the year if you can buy a gold stocks that has good value , you will still make plenty of money over the years.
The key in investment is “hard work”, “made mistakes”, and “persevere”, like learning to blog !
All the best, write to my email anything. I will reply within 24hours !
Jamy
yes, Jamy, i was wondering on the same question, since you put a chart saying that usd is going down and gold prices going up, it is not a good time to buy is it?
Jenny,
.
:):):)
“usd is going down and gold prices going up, it is not a good time to buy is it?”
My 2cents opinion is if you are buying gold (as physical gold), any price under US$1000 /oz is good to buy.
If you are buying gold and silver stock, you have to look at the value of each stocks and the technical chart of each individual stock.
To me, this is one of the life time opportunity to buy gold.
It is like the beginning of tech stock boom (when you buy microsoft when no one really care) and when you buy a real estate when the price was so depressed.
Like when you start blogging when no one knows what is blog about.
Now according to technocratic , every 2 seconds there is a blog being formed.
Now even the displaced housewife is writing a blog.
It is still a very early stage of gold. When the shoe shine boy tell you the tips about buying gold, you should be selling.
I have been spreading the gold gospel for the last 3 years oleri. I have been in gold for 5yrs now
It is still plenty of time to get in gold.
Gold investment is still in infant stage. You can know it becasue there are a lot of unbeliever.
When you know you should get out of it is when everyone is telling you to buy gold
Jamy a sincere gold investor !
Yes, I can understand the philosophy of going against the flow, I read it before somewhere, I think Warren Buffet follow the same principle, but he also dabble in what he knows, which is why people say he stayed away from tech stocks. Looks like I have plenty of reading to do on gold stocks.. And thanks for spreading the word, I learnt something important from your blog
Thanks Jamy for the info!
ant,
One need to know about cyclical when invest.
http://www.investopedia.com/articles/00/082800.asp
Investment is not only concern with microscopic level (eg. one need to know a stock MV, MCD, stochstic values), one also need to look at macro economics factors such as if the era you are living is high inflation or depression. The earlier one aspect one need to be familiar oneself in stock charts reading and the later aspect, one need to familiar with history and economics trend.
For eg., R.E flippers (people who buy and sell house on quick turn around) made lots of $ from 2001 to 2005. Market has turned against them since mid 2006 to now. They are losing their pants and many of them have turned their professional. Before they bought hse and can turned around quickly, now they are left with hses they cannot sell even at a lost price.
There are many many ways to make money. I personally do not believe in get rich quick kind of method. There are a lot of people out there who can tell you subscribe my newsletter I can tell you a stock or a blog or whatever ular minyat they want to sell , that can give you 500% profit in 2 days or 2 weeks or 2 months. I tell them to jump Sarawak River
:).
Usually when an email like that came into my in-box, I did not even bother to open, sekali, it went straight to my thrash box.
There are only a few steps towards success. Work hard, work hard and work hard.
:):)
Nothing comes easy is my motor
.
Even finding a good husband also need a lot of hard work. I can tell you
:). My husband said I am the most persistent woman he has met. Yalah, I have to confess, I am the one who is the chaser, ha ha ha ha. So to get result, you need hard work lah 
:).
Read and read and read until you eat , dream and pansai also can know all the facts about gold. Then I said you are ready to buy gold, ha ha ha ha.
All the best, you are the top 2nd commentators. The way you comment, you might get the US$28 reward
:).
Jamy.
Hahaha, thank you for your detailed explanation, I’ll take your advice when I eat, dream & pansai also come out gold, I mean about gold then only start to seriously consider buying, until then, I’ll keep reading. As for the commentator reward, I think I’ll lay low for now, starting to get busy already, cannot troll the kopitiam everyday hahahaha.. Good luck to all, esp to cirnelle, hope you win the reward! Peace~
ant,
. I am a big joker , so take everything I said a pinch of salt, ha ha ha ha.
I really hope you know I am joking when I said about keeping it for Cirnelle, :”As for the commentator reward, I think I’ll lay low for now.”. Every reader has the same chance lah
Hahhahaha… its okay, I’m really gonna be busy this weekend, see how thing goes la
Are you sure you are not busy “pat toi” ?
Oh no! Read this news: How like that?
http://thestar.com.my/news/story.asp?file=/2007/7/28/apworld/20070728105015&sec=apworld
Not a big deal one. I had seen bigger drop than this and bigger rise than that. But, it has risen from US$250/oz to today price and a lot of gold stocks have risen from US$50cents to US$30dollars.
It is cyclic investment.
It is a hedging tool for inflation. I suppose you know about hedging ?
Like I said before every year there will be times when gold price consolidate, that is the time to buy. When there is blood in the market, that is when a good time to buy
Cirnelle,
Read this before you even read why gold.
Understand why/what/how about Austrain Economy :http://www.mises.org/etexts/austrian.asp
Nola, not “paktoh” (if thats what u mean). Got some part time work to do & personal stuff as well.
Ya, I seen that news on The Star as well. When I read it I chuckled because of what I’ve read so far about gold. If gold price drop, then its a good time to buy, so is now the time? Suddenly it becomes quite clear. I’ve seen a documentary before called money secrets or something like that, which explains about how the American dollar is not worth what its printed on, while some part of America uses a different dollar that is backed by real gold. Now this affects America, but does the same system is practiced here, as in, whether Ringgit is backed by a commodity? And one more questions, how the fall of US dollar, if that happens, affect the rest of the world? Ops.. too many things on my mind~
Gold’s a hedging tool for practically anything bad, right? right? right?
Shall read that link first… before I clog up this comment box with junk talk. Thanks, Jamy.
So, we have the French, Irish and certain Austrians to thank for not having to waddle through massive amounts of data when studying economics. Plus, I was also fascinated by the fact that one of them was a tutor to the suicidal Crown Prince of an Austrian Hungarian throne.
Everything else was Greek to me. :p
ant,
You are not only a handsome young man but a thinking young man. (Not a flatter but not many young person knows this fact : “how the American dollar is not worth what its printed on,”
A lot of times, the value of currency is based on its perception that the strength of the country, like English pounds, Germans…
Most schools, colleges, university taught the students on Keynesian economics. Not until I met my present investment mentor did I realized what are the differences.
I hope $USD will not be having the same fate like this article on Wikepedia while burning coals is more expensive than burning money.
http://en.wikipedia.org/wiki/Weimar_Republic
Don’t you think that picture on “Inflation 1923–24: a woman feeds her tiled stove with money. At the time, burning money was less expensive than buying firewood.” is so scary if that situation happened again ?
The nature of money by Jim of Financial sense :
http://www.financialsense.com/series4/part1.html
Read and read and get yourself more familiar on what is real money. It does not matter that it takes a few year to understand but once you understand you hold the key to investment.
Jamy
Cirnelle,
, ha ha ha ha ha.
Nothing you ever said was junk to me.
Ask questions , please
Cirnelle,
.
Not every period of history is appropriate time to buy gold. But, this is one of the life time.
During the 1st gulf war, oil and gold both went up a lot and this gulf war too.
My husband has a very good book on what kind of situation (in term of years) , what kind of investment is appropriate. I forget now but will go to our library to find. Yes, we do have a library at home. He is a librarian, don’t forget
Lol, handsome & thinking, very flattering indeed but I’m neither, the fact “American dollar is not worth the paper it’s printed on” is lifted from somewhere that I have read before and reinforced in the documentary I watch a while ago. Now I remember the title, I think it’s “The Secret of Money Masters” or something like that. Meanwhile, I have gone thru the story about German marks, & reading the history of Money. This is starting to be like an economic class
How come gold & oil went up in the gulf war? Is it because it is because oil is in demand? or? I dun get it for gold either.. Was is becos American is printing more new dollars to pay for the expenses of the war?
Ps: I didnt know your husband is a librarian, cool~ Hehe, I love books.
It is a post of itself about these questions
“How come gold & oil went up in the gulf war? Is it because it is because oil is in demand? or? I dun get it for gold either.. Was is becos American is printing more new dollars to pay for the expenses of the war?” Will answer you later 
. His late mom had her Ph.D in French and Master degree in Library Science and his maternal grandpa had his Ph.D in English and an avid book reviewer for his home town news paper. I think with his mom influence he got his Master degree in Library Science 
. So, you can see between my father in law, my husband and me, the numbers of books we have and read 
.
Yes, my husband comes from a family of book lover. His dad has his Ph.D in Spanish though he is not Spanish
Ya ya…. please post it. Gold is still a new creature to me. If you recall, I prefer silver when it comes to colour.
But the “Dummies Guide” post explained quite a bit, though I had a hard time grasping the concept of junior stock (such a non-investo-consciou, can-you-believe-I’ve-never-bought-shares-Cirnelle)
But oil went up in price because of the anticipation that the gulf war would tantamount to uncertainty in supply in those warring states, not to mention machines of war are fueled by black gold…. did I get that one right, Gold Guru?
What PhD are you working on, Jamy?
Cirnelle,
This one is easy to explain :”concept of junior stock (such a non-investo-consciou, can-you-believe-I’ve-never-bought-shares-Cirnelle)”.
Exploration is expensive and is risky, a lot of times major producing companies would rather buy juniors that found gold than exploring themselves.
That is why when you get in right in reading their account report, $ per ground ores etc…you can win big times.
There was once junior company I bought, once it started producing (real producing), it shot up from $3 to $12. When it was $12, the big 3 (3rd)bought it, within a few mths, I was given a certain amount of the shares of the big 3 (the 3rd). It was extremely exciting to own the big 3 (3rd)…
The 3 biggie in investing gold shares are :
a. diversify, so if you lost one, you won’t lost too much.
b. always look for the person behind the management, there are one or two that we called the golden finger.
c. invest a certain percentage in gold on your overall investment portfolio : you should have RE, general stocks, bonds, mutual funds and etc…
It was so much easier 5 yrs ago to invest gold, there were only a handful of gold stocks , you have like 5-12 companies (a page when you used an online broker’s s/w) but now it is more challenging cos there are so many more stocks out there.
Before it is so easy to buy, when gold went up , sure all the 12 went up, now not so, there are apples and oranges now.
I am doing “Kapoma” PhD at the moment
.
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