Investing in Gold

Video Transcript

"Are you predicting economic Armageddon or a rapidly inflated environment looking forward over the next 10 years? Hi, I'm Roger Groh of Groh Asset Management. Today, we're here to talk about how to invest in gold, as gold is a traditional hedge against calamitous events and inflation. One note about gold: If there isn't much going on in terms of Armageddon or there's deflation, gold may not do very well. So you have to consider that as you think about your investment portfolio. Now, what can you actually buy? Well, it might be more difficult than you think to actually go and buy a bar of gold. You can. You can look through your local Yellow Pages or look online, and go to gold dealers who will sell you gold. Be very careful. A local dealer may very well mark up the price of what they're paying far beyond what you would pay as an institutional buyer. Now, what else can you do? Well, one of the easiest ways to play gold is by buying stocks that own gold mines. That may sound funny, but their heart is in the same place as yours. Find more gold, mine more gold, and sell more gold, and drive profits. That means that you're right on the same page with the management team, and believe me, those stocks will benefit from an Armageddon situation or from a rapidly increasing inflation situation. Last, but not least, if you're very sophisticated, you can buy futures in gold. Now, that's a pure spec on where gold prices are going, either up or down. It would be very difficult to make money in there. Traditionally, they're used more as a hedge against the actual mineral rather than as a spec investment. They are not for the retail investor. So my best bet: Find a great gold stock. Buy it, and enjoy the ride. Thank you very much. I'm Roger Groh with Groh Asset, and thank you for spending a few minutes with me."