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10 Things To Know Before Jumping Into Gold And Silver



January 19, 2011 – Comments (7) | RELATED TICKERS: GLD , SLV

As the global economy became increasingly unstable during 2010, investors all over the world flocked to precious metals such as gold, silver, copper and platinum.  The price of gold set an all-time record high last year, and gold investors were euphoric. 

Many analysts are projecting that prices for gold, silver and other precious metals will continue to soar throughout 2011.  But does that mean that everyone should just suddenly jump into gold and silver?  No, it does not.  Precious metals are not for everyone. 

Just like any other kind of investing, it is absolutely crucial that you get educated before you get involved.  Investing in precious metals is very different from other kinds of investments.  There are significant hazards and pitfalls to watch out for.  But if you take the time to do it right, investing in precious metals can be very rewarding, and it can potentially be a great way to protect your wealth against the tremendous inflation that is coming in the years ahead.

The following are ten key things that you should know before jumping into gold and silver...

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7 Comments – Post Your Own

#1) On January 19, 2011 at 2:50 PM, leohaas (30.15) wrote:

Interesting article. Of course, it presumes the end-of-the-world-as-we-know-it. It is not about investing, it is about surviving.

If you believe armageddon is near, read it: it contains just the kind of info you need. Otherwise, skip!

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#2) On January 19, 2011 at 3:22 PM, kdakota630 (29.12) wrote:


I disagree.  There definitely is some of that mindset (#8 in particular) but I wouldn't dismiss the entire article if you're not in the armageddon-is-near camp.

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#3) On January 19, 2011 at 3:53 PM, TDRH (97.30) wrote:

It is easy to underestimate the lows and the highs in any commodity, particularly gold and silver.    Interesting article.

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#4) On January 19, 2011 at 7:54 PM, SockMarket (34.47) wrote:

I take issue with #5. If the financial world ever gets that close to ending if I hold a significant amount of "paper" gold I can cash it out and buy a few mansions in Malibu to store the wealth. (well I wouldn't really buy in Malibu, but the point is the same: I would have plenty of warning and plenty of cash...I wouldn't need the safety of physical gold).

Also physical gold is considered a collectors item and so it's profits is taxed at 33%...not what I want my investments to be taxed at.

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#5) On January 20, 2011 at 1:04 AM, DarthMaul09 (29.16) wrote:

King World News is the easiest way to get quickly educated about the precious metals market.


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#6) On January 20, 2011 at 3:44 AM, FleaBagger (27.51) wrote:

SockMarket - What if you are in a car crash and go into a coma? Or even if you just get really busy and distracted?

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#7) On January 20, 2011 at 10:09 AM, silverminer (30.17) wrote:


"King World News is the easiest way to get quickly educated about the precious metals market."

I strenuously disagree. They provide a valuable service, to be sure, but listening to audio clips is a very inefficient means of getting up to speed on the sector. is source #1 for the macroeconomic perspective needed to understand the outlook for continuation of the bull market trend. For gold equity news, I recommend Kitco in addition to my article feed. For the manipulation issue, a review of gata's archives is highly recommended.

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