Hi

I want to park some of my US funds in gold, but am not sure as to how to go about it. Should I buy bullion, or should I invest in stocks of the gold companies?
What are the advantages/disadvantages of buying bullion as compared to stocks?
Would appreciate more details.

Thanx

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sumjo

Hello

You can open an account with any discount brokerage. You can buy bullion (certificate) or stocks (gold cos or ETF's) in that account.

The advantage of buying bullion is that you participate directly in the fall / rise of gold. Your broker would charge you a spread and commission on the buy / sell. If you buy stocks or ETF's you are indirectly participating on the gold fall / rise. This depends on the performance of the company or the fund manager if it is an ETF or a mutual fund. Major gold cos you can think of are Barrick (ABX - both on TSX and US), Goldcorp (G on TSX and GG on US), Yamana Gold (YRI - TSX and AUY - US) and Kinross (K - TSX , I do not remember the symbol if at all it trades on the US side).

In my opinion this is not the time to invest in Gold. Gold is not on an incline right now and is just in a trading range.

All above is my opinion and in no way an advise to invest in any of the stocks above.

Hope this helps.

By the way if you plan to open an account let me know. I have an account with Questrade and they shall give you and me both rebates on trades for referral.

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Originally posted by sumjo

Hi

I want to park some of my US funds in gold, but am not sure as to how to go about it. Should I buy bullion, or should I invest in stocks of the gold companies?
What are the advantages/disadvantages of buying bullion as compared to stocks?
Would appreciate more details.

Thanx

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