Free Financial Lessons

Gold Investing, An Opinion

This video tutorial is available for watching at YouTube or here for free. My YouTube name is Featureman.

When you begin to trade, and even after many years of trading, I recommend only to purchase something which has an underlying value. I avoid puts and calls and options, because they can expire worthless. It is possible to lose all your investment no matter how good it looked when you bought it. Some stocks will go to zero, but most major companies will have value year after year.

There are many ways to invest in gold or precious metals. It is possible to buy physical gold as bars, or bullion. Gold can be bought as a coin. Gold can be owned as jewelry. Gold investments might also be in the form of owning a mining stock or a mutual fund or exchange traded fund.

There are also some funds that are hedge funds where it is possible to make a profit if gold goes down. It is best to study all possibilities before investing in gold, either long or short. Gold is volatile.


Gold Map Gold has made many men rich throughout the world and throughout history. It has financed wars and been the symbol of a loving marriage when worn on the ring finger. It has been part of the Westward move to California in 1849 and it helped shape the US boundaries. There have been movies about gold. There have been songs about gold. Some people wear gold around their necks or on their fingers or on their wrists or in their teeth. Pianos and car grills have been gold plated. Other than that, gold has little real value. It cannot be ridden like a bicycle or slapped between two slices of bread like a slice of bologna. Gold's only real value is its perception by many investors. If you think that will continue to rise, gold might be for you. A good idea in life is to invest first in things you need, such as new tools for your trade and clothing and food that has a long shelf life.

Dream big, but invest with caution

Gold Case Be very careful when you invest in gold, like when you make any investment. Throughout history gold has gone up in value and it has gone down in value and tax collectors have taken a part of any profit that was made. Know the spread, or price difference, if you intend to buy or sell physical gold in the form of coins or bars. I urge great caution if you are considering an investment in options or puts or calls. Gold dealers and jewelers can make a profit in gold even if the price does not go up. They will usually be bullish on gold.