Buying stocks.

[bassahaulic 155]

Who on here buys/sells stocks to make money?

I'm interested in getting into it, not looking to make a fortune. Just need some advice to get started.

[Kanaworm$ 292]

Research, reasearch and more research. Look at historical highs and lows and current value. Find yourself a reputable broker. AG Edwards etc.

[ssh 924]

If your posting question such as this here, then your likely wasting your time, and likely money.

You can't expect to just waltz into something you have no idea about, and come out ahead.

At least read some books, and take some classes at local community college.

[bassahaulic 155]

I didn't plan on sinking shit loads of cash into it.

Just wanted to get started small.

This is something I have NO clue about.

[emh9009 199]

Just buy some gold No research needed, really.

[An-i-no 86]

Just buy some gold No research needed, really.

Sounds like a plan.

[bassahaulic 155]

Just buy some gold No research needed, really.

I like your idea. lol

[ssh 924]

Just buy some gold No research needed, really.

Except gold isn't an investment, it secures purchasing power.

[emh9009 199]

Just buy some gold No research needed, really.

Except gold isn't an investment, it secures purchasing power.

What do you mean, "secures purchasing power"?

[ssh 924]

Just buy some gold No research needed, really.

Except gold isn't an investment, it secures purchasing power.

What do you mean, "secures purchasing power"?

I don't know the prices for gold so these numbers are just an example.

Say 1g of gold is worth $10, and you can buy a pizza for $10

Twenty years pass, and that same pizza now cost $16 due to inflation. Approx the same amount of gold (1g) will buy that $16 pizza.

Your purchasing power has stayed the same. Can't buy two pizzas...

[emh9009 199]

That would probably only be a small factor. Back in early 2000s gold was $2-300 an oz, and today it's ~1700 that's a little more increase than inflation

Edited May 31, 2012 by watts09

[Notorious97200 339]

I like the idea of buying gold !

It becomes more and more expensive in these times of economical crisis.

There are more and more shop buyong used/old gold in my country. their buying prices are going up regularly, but they are still way under the real market costs. They make good deals everyday ! But not on mine ! I keep my gold as long as I can !

[ssh 924]

That would probably only be a small factor. Back in early 2000s gold was $2-300 an oz, and today it's ~1700 that's a little more increase than inflation

Pick a commodity, say oil, if you averaged out the cost of a barrel of crude oil over the last forty years, and compared it against the value of gold, and then USD, you might be surprised.

http://www.kitco.com...f/au75-pres.gif

http://www.wtrg.com/...ilprice1970.gif

Yes there are other factors, fluctuation occurs, and money could be made, but I still wouldn't consider it much of an investment.

2002, 1oz gold = $350

2010 1oz gold = $1400

2002 1 barrel crude oil = $27

2010 1 barrel crude oil = $80

$350 / $27 = 13 barrels of crude oil could be purchased with 1oz of gold in 2002.

$1400 / $80 = 17.5 barrels of crude oil could be purchased with 1oz of gold in 2010.

The price of 1oz of gold in USD in 2002 was $350, and in 2010 it was $1400. So you think you made four times your money, yet you can only buy an additional 4.5 barrels of crude oil, so yes you did get a return, but it isn't anywhere near what you think you got (58.5 barrels).

If you did the same thing as above for 1990 to 2000, you would have gone from 13 barrels to 9 barrels, so yes it fluctuates, markets aren't simple, but if you continue to do this over and over, you may have a different opinion on gold and investment.

Edited May 31, 2012 by stefanhinote

[emh9009 199]

That makes sense. Thanks for pointing that out!

It's cooler to have an gold oz coin than a barrel of oil