Is it time to invest in gold and silver
I want to make some fast cash. I heard buying gold is the way forward for the rest of the year...
Hmmm… possibly. The price has been rising quite quickly of late.
By a lot?
In the last 30 days, gold went up nine per cent, which is huge. Silver went up by more than 10 per cent.
So this is a done deal?
Well, you need to think long term. In the past year, the price of gold went down three percent, while silver fell nearly 10 percent. Over the last five years, silver has fallen by 50 percent and gold by 13 percent.
What are the exact prices then?
Gold is back up to US$1,200 an ounce while silver is steady at just over US$15 an ounce.
So when should I buy?
The rule of thumb is that when the economy does badly, the price of gold goes up as people feel it’s a safe place to invest. Right now stock markets are tumbling because people fear another recession is coming.
How do I go about buying some?
In Dubai this is very easy. The best way is to go to the Gold and Diamond Park, walk into any shop and say you want to buy gold or silver. Tell them how much you have, and depending on the price, they will give the amount in gold or silver bars.
What, actual bars I can take home?
Are they heavy?
Well, if you buy, say, AED100,000 in silver you would need three people to help you carry it home.
Can I haggle over the price?
Yes, watch out for their margins, that’s how they make their money. It’s worth shopping around.
You keep it in a safe place and wait for the price to rise. Keep ringing the jeweller to see what he will buy it back off you for, and when you feel you have made enough of a profit, sell it.
What, I have to lug it all back?
Most buyers will come to your house and give you cash in hand.
What if the price goes down?
Well, don’t sell it obviously.
Do I need to do any research?
Well, that helps. But this is a risk. The prices have been rising but can fall tomorrow.
Any better ways to make fast cash?
Yes. Get a better job.