All About Investing in Gold: The Easy Way to Get Started
$13.04
| Author(s) | , |
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| Format |
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| Pages |
318 |
| Published Date |
2011 |
All About Investing in Gold walks you through the often overlooked intricacies of investing in gold with a clarity and coherence you won’t find in other books. Using real-world examples and simple, jargon-free language, All About Investing in Gold illustrates how gold investing works, why gold deserves a spot in your portfolio, and how to avoid the costly pitfalls many investors fall into when buying gold.
Author’s Note:
Gold trading and investing has become much easier and cheaper, and that is good news for long-term investors and short-term traders who are looking for more opportunities and diversification. It has been the best performing major asset class over the last five years, returning more than 200 percent on an unleveraged basis, and that trend seems likely to continue for the next five years. Gold traders have unprecedented access to investment products that are both cheap and efficient. It is now possible to invest in gold bullion for fees as low as 0.25 percent per year. Many of these products are new innovations; that is not a bad thing, but it does require caution and education before one makes an investment.
The introduction and growing popularity of gold exchange-traded funds (ETFs), fractional gold futures contracts, and legitimate bullion storage services are quickly displacing the outrageously expensive and unstable products that traditionally dominated the gold market. Demand for gold as an investment is growing within markets as diverse as the United States, where investors are seeking protection from financial market disruptions, and China, where gold investors are buying record amounts as a way to hedge against out-of-control inflation. Chinese investors demanded 45.1 tonnes (metric tons) of gold in the third quarter of 2010, a new quarterly record. Chinese buying accounted for 16 percent of total global demand for gold in that quarter.
We can only imagine what will happen when the world’s biggest saver decides to really get serious about gold investing.
During the five-year period 2005–2010 large-cap stocks returned less than 5 percent, riskier small-cap stocks returned less than 25 percent, and even the surprising bull market for Treasury bond funds provided only 10 percent for investors with nearly perfect timing. Don’t misunderstand those numbers: They are not annual returns. These are total returns for all five years combined. As an investor, you are probably well aware of the poor performance of many assets over the last 5, 10, or even 15 years and agree that something has gone very wrong with the traditional investment choices. Smart traders are making a decision to use gold as a way to limit account volatility and improve performance.
Stock investors have been hurt by volatile markets. The Standard & Poor’s 500 (S&P 500) closed 2010 with a net loss of 10 percent for the decade, whereas over the same period gold was up more than 400 percent. If you have been investing exclusively in stocks, we have a lot to show you about adding gold to your portfolio and how it can be done without adding any complexity or disrupting your brokerage account. You still need to be careful not to become a return chaser in the rush to profits in the gold market. We will show you how to balance your new gold holdings to provide the maximum benefits without taking on too much risk.
We think the fundamentals in the market are pointing to a long-term and substantial increase in the price of gold. In this book we will present the reasons for our bullish bias and specific actions we recommend for taking advantage of gold as an investment. However, we are also realists and know that the market is full of fat tail risks that are impossible to predict and can shift market fundamentals without warning. Gold investors should be prepared for changes, and we will show you how to profit even if prices do not rise as expected. “Markets can remain irrational a lot longer than you and I can remain solvent,” wrote the economist John Maynard Keynes, and we agree with that sentiment. There is no reason to feel trapped in old or erroneous analysis when you can be making money instead.
Contents:
- Gold Market Background
- The Major Players
- The Fundamentals of the Gold Market
- The Bad and the Worst Gold Products
- The Good Gold Products
- Technical Analysis
- Long-Term Investing
- Active Trading Strategies
- Gold’s Sister Market: Silver
All About Investing in Gold: The Easy Way to Get Started By John Jagerson, S. Wade Hansen pdf
21 reviews for All About Investing in Gold: The Easy Way to Get Started
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Lacey Erickson (verified owner) –
It is a very good introduction into investing in gold. Good book for the price.
Zhuri Le (verified owner) –
Had not realised that it has been two years since I purchased this book, but it is not the first time that I have read it.
It has useful information – in particular, to help someone like me decide that investing in gold by their recommended methods is not for me.
Over the years of much widespread reading and investigation, I have decided that kind of investing across the board is not my cup-of-tea. This is not to say that there is much valuable information to others who may find their knowledge of this market more useful to them.
Overall a well written and easy to understand book.
Cassandra Mata (verified owner) –
With gold at record highs, it clearly is an asset class that must not be ignored. Jagerson and Hansen do a super job in this book explaining the unique nature of the gold market, and lay out a clear plan for protecting and growing your wealth with the original “hard asset.” I would highly recommend this book.
Nancy Peck (verified owner) –
Of all the books I’ve read on the topic (and investing in general), this one gives solid and informative information on learning the details of how to get started in investing in gold. Answers the questions one needs to know; how, where, why, etc. Prior to reading, I’d never really considered precious metals, but now I feel like I’d be able to enter the market with a good knowledge of what I’m doing as opposed to approaching it blindly “hoping” to make money.
Josie Gray (verified owner) –
Although I manage investments professionally, gold is a different animal. “All About Investing in Gold” helped me to better understand the role gold plays as a diversifier and the benefits of having some gold in my investment portfolio. The book was also very informative on how gold should be purchased and gave appropriate warnings regarding gold scams which are prevalent. Anyone thinking about purchasing gold should read this book. The book takes some very hard to understand concepts and makes them understandable to the average reader.
Gavin Villa (verified owner) –
I found this book an excellent read, I have wanted to understand Golds place in the markets for such a long time and once I saw that the guys from Learning Markets had written the book it was a must buy. The way the book is written makes it such a hard book to put down which is frankly unusual for this kind of subject. I follow John and Wade on their website Learning Markets which for anyone with an interest in the stock market is frankly the best website out there. Their clear concise method of explaining subjects that can be quite complicated through video and articles is second to none, this easy to follow education is translated perfectly in this book on Gold. I cant recommend this book more and is the kind of book you will always have on your desk as a reference tool.
Dion Wong (verified owner) –
Gr8
Ramon Castillo (verified owner) –
I started reading this book but after about half way through, I realized it didn’t address my questions.
Damien Sosa (verified owner) –
I was very pleased with the information obtained from this book!
Ray Aguilar (verified owner) –
Comprehensive book on all things gold. I really enjoyed getting good details on the many derivatives of this precious metal without all the fluff and hyperbola you see all over the net or with other types of media. Solid.
Paula Hester (verified owner) –
Great book with great details. Published on 2011 but still not outdated. Will recommend to everyone interested in either long or short term gold trading
Aitana Kline (verified owner) –
Another concise, informative, and balanced book from Jagerson and Hansen. Highly recommended for a nice overview of the gold market. The author’s site learningmarkets.com is a free resource to help you understand the markets and help you get better at trading or investing, whatever your cup of tea is.
Rene McPherson (verified owner) –
Overall helpful book to introduce a beginner investor into investing in gold. Helpful little silver tidbit at the end of the book.
Yousef Hendrix (verified owner) –
I have been trading for years and have been tired of hearing the gold bugs talk about how everyone should rush out and buy gold coins and gold bars. This book does a great job of laying out methods of investing in gold in a clear way providing alternatives that are more realistic and more accessible at verying levels of interest and investments. Well done.
Adelaide Copeland (verified owner) –
Excellent book, especially for investors curious about gold market. Topics covered include factors affecting gold prices, types of products in gold market, bad and good products, technical and fundamental analysis and investment strategies in gold. Everything you need to know to start investing.
Axton Frost (verified owner) –
In an industry full of scams and rip-offs, finally I found a book that offers honest, easy-to-understand information and education on gold investing.
The authors to an excellent job making a difficult subject easy to understand, while doing so without bias but with room for explanation of the opportunity.
I recommend this to people who are interested in gold, but aren’t naive enough to fall for all the TV ads which drastically mark up the price of gold or try to convince you to buy gold bricks.
Emmaline Combs (verified owner) –
All About Investing in Gold demystifies many of the complexities and myths around gold investing and does so in purely objective fashion. Many books on this subject in particular are padded with doomsday underpinnings or have a “get rich quick” appeal. Not this one. If you’re looking for a compact, yet thorough primer on the often nebulous world of gold by people who have done it (not just talk about it), this book is it.
After reading this book I gave it to my elderly father who worked his whole life in a blue collar job only to see his retirement wiped out in 2008. He commented on how if someone would have written this book for the “common reader” 50 years ago when he began investing, his portfolio would have stood a fighting chance. I agree, and am confident that the information in this book arms me with the fundamental knowledge to make wise decisions when it comes to gold and my portfolio.
Johnny Horton (verified owner) –
This book is very good by introducing gold as an investment to the individual who has at least moderate knowledge of markets. They clear up some of the “mysteries” about gold. The authors provide interesting charts and tables showing gold’s performance over time and compared to other assets. It is a comprehensive though short book — there are a lot of ways to invest in gold with pros and cons addressed. A chapter is included on silver which is worthwhile. They outline some trading strategies which are sophisticated — I suggest other readings to more fully understand and corroborate these tactics. All markets have moved a lot since the book was published so an update is warranted but this is a good overall treatment of the subject. I say it is not a “gold bug” book because the authors are not trying to convince the readers to hoard gold — and buy it from the author’s company or subscribe to their sell-side newsletter.
Johanna Stuart (verified owner) –
Ever wanted a brief history lesson on the origins as Gold as an investment, its history of price fluctuations, and why it has become more and more a part of individual investor portfolios since 1997? Ever wanted to know the 5 key factors that influence the price of Gold? Ever wanted to know the fundamental factors behind the bull run in Gold? Ever wanted to learn about intermarket relationships between Gold and other asset classes? Ever wanted a quick lesson on modern portfolio theory (MPT) and risk management? Most importantly, ever wanted to learn strategies and technical analysis tools that teach you how to trade Gold and benefit from both upward and/or DOWNWARD price fluctuations? This book does all of that in a no-nonsense, easy to follow quick read. The authors have taken great care to ensure that the book is easy for novice investors to read, yet detailed enough in strategy to be an asset to experienced traders. I highly recommend this book for people curious about investing in Gold as a part of their diversified portfolio of assets. I guarantee it will teach all readers something new that they did not know about Gold or investing before!
Nicholas Hobbs (verified owner) –
I was looking for a book that would explain the basics of gold investing. This was just the right book for me.
Georgia Harrison (verified owner) –
I have been a precious metals investor since 2004, and have over a dozen books with similar themes in my library. This is one of the best. Not only does it admit how the economics of gold investing have become wrapped up in politics, it describes the economic events that drive the price of gold. For example (and contrary to recent right wing ideology), some inflation is normal and constructive – since it keeps the money supply circulating (otherwise that money tends to collect in stagnant pools). This normal, constructive type of inflation tends to drive the price of gold down. Out of control inflation (e.g. from blatant currency debasement), on the other hand, will drive the gold price up. The real world of economics is not all black and white, and it’s a discussion of subtleties like these (against things such as inflation) which make this book well worth reading. Admittedly, I got lost with some of the financial jargon describing short term trading considerations (puts, calls, leverage, Fibonacci determination of support and resistance levels); but then again, I am a long term “buy and hold” (rather than a short term) investor, so these concepts are not as important to me.
The one absolute false claim of the book is that owning physical gold is prohibitively expensive, and it is made at least 4 times. This is complete rubbish, and perhaps reflects what the authors sell – “paper gold” (ETFs, etc.), rather than the real thing. Frankly, I would not trust this paper gold to not represent the same ounce of gold sold to at least three different people. To the book’s credit, it actually mentions this kind of horseplay. It also mentions the all important term “bailment” in this context, but they don’t adequately describe what it really means (from the Foley vs. Hill case, circa 1848 ). While the authors go to some length to describe “BullionVault” physical gold storage facilities, a much cheaper alternative is readily available your local bank. The simple use of a safe deposit box (which costs about $40/year in my area) for physical gold storage went completely unmentioned. Furthermore, modern physical coinage (e.g., Gold Eagles, Gold Buffalos) costs around 8% over the spot price of the raw metallic gold (with approx. half as the “coin premium” charged by the mint for creating the coin, and the other half as the dealer’s commission). A safe deposit box and these coin premiums are less than most assorted investment gurus surcharge for their services (which can be a hefty amount, especially when calculated as a periodically paid percentage of your total investment) .
With this one exception, if you are going to read a book about gold and silver investing – this is the one to buy.