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Gold Investing for Beginners - How and Why You Should Invest in Gold

what's up youtube silverdragons here and

in this

video i'm gonna talk about gold

investing for beginners

so let's do it

[Music]

thank you so much for watching my video

i do sincerely appreciate it

if you want to learn more about

investing in precious metals or if you

just want to watch awesome videos about

gold and silver

make sure to subscribe to my youtube

channel alright so this

video is all about gold investing for

beginners

we're going to talk about why you should

be investing in gold but also we'll talk

about the different ways

that you can be investing in gold now

there are two main reasons why people

invest in gold the first is to maintain

their wealth and the second is to

grow their wealth now when it comes to

maintaining wealth why is gold

so good well gold is considered to be a

safe haven asset gold is a great hedge

against inflation

and it's recognized as money all across

the globe

i mean gold has literally been used for

currency money barter whatever you want

to call it for

thousands of years now i know there's a

lot of people out there that don't want

to just maintain

their wealth by diversifying into gold

but they want to grow their wealth as

well

and we're definitely going to cover that

in this video so

real briefly i'll just mention the four

different ways

you can invest into gold and then we'll

talk about why you should

the first way is by just buying physical

gold

like this right here you could buy gold

coins gold

bars there are several different places

you could purchase them you could go to

a

local coin shop or you could buy them

from an online bullion dealer for

example

another way to invest into gold is to

buy an etf

this is just like buying a stock so if

you've ever used a broker like fidelity

or td ameritrade or maybe even the

robinhood app

you could go on there and look for gld

that's probably one of the most

popular gold etfs now a

etf like gld will basically follow the

spot price of gold

so if the spot price of gold were to go

up then your

shares and gld would likely go up as

well and then if it went down

then those would go down so it's

essentially

similar to buying physical gold however

you're actually not taking possession of

any so it's really

uh paper gold is what people call it you

don't actually ever own any gold

another way to invest into gold is to

play the futures

markets and we're not going to get into

that heavily in this video because this

is investing for beginners and there's a

lot of

risk there a lot of potential to lose

money if you don't know what you're

doing

and then the last way is to invest into

gold

mining companies so that being said

we're going to talk about

why you should be investing in gold i

think the best place to start is why i

invest in gold and the reason why i do

is because it's a hedge against

inflation

and it's a safe haven asset so if the

stock market crashes i'll maintain my

wealth

if there's massive inflation i'll

maintain my wealth

so really any portfolio should be

somewhat diversified into precious

metals

in my opinion now in regards to

inflation

the us dollar can be manipulated by the

government

they can create more of it and when they

do this that's a classic form of

inflation

expansion of the money supply inflates

the money

now we're not going to get into macro

economics and all the intricacies

of inflation that's definitely a topic

for another video but there are some

charts that i want to show you in regard

to expanding the money supply

all right so this first chart here is

the m2 money supply or how many us

dollars are in existence and the

year-over-year percentage

growth so this chart right here should

scare you in 2020 there is this

massive spike up it's almost to 25

percent

that would mean in 2020 if it reaches 25

which i think it will because there's

another stimulus package about to pass

that we will have created a quarter of

all of the us dollars

ever created this year alone

how crazy is that so clearly the

government

is expanding the money supply with all

of these stimulus packages

so yes inflation is happening and

there's nothing that you or i could do

to stop it

but we can protect ourselves from it now

this chart here

is the u.s national debt and as you can

see it's very similar to the chart we

just saw

2020 has a massive spike up we're

actually now over 27

trillion dollars in debt as a country

and

this is really just the start it seems

as though inflation

is inevitable for today tomorrow and the

foreseeable future

so for those reasons alone it's a really

good idea to invest in gold which as we

just talked about is a great hedge

now as i'm filming this video the spot

price of gold is right around 18.50

per ounce however goldman sachs is

predicting 2300

gold in 2021 and with the government

creating a

seemingly unlimited amount of currency

with no end in sight

i think it's an excellent time to be

diversifying into the yellow metal now

coming back to the different ways you

can invest in gold by far the safest

is to buy physical that's what i like to

do that's what a lot of people do to

just maintain their wealth over a long

period of time

because it's this great hedge as we

talked about the other way to

buy an etf such as gld is a little bit

more risky

and there are some other facets to it i

typically don't recommend

buying a paper version of something when

you could just buy

the real thing also if you take any

profits when you sell

your gld you will be subject to the

highest capital gains tax because the

irs considers gold to be a collectible

so that's another thing you should take

into account

now as i mentioned before buying futures

is very advanced and definitely not for

a beginner video

maybe i'll do a video on that in the

future

no pun intended but honestly you can

lose a lot of money and there is a lot

of

risk when it comes to buying and selling

futures so we're not going to cover that

in this

video the last way to invest in gold is

by

buying gold mining stocks and this is

actually a great way to grow your wealth

as well because the price of these

stocks can go up

independent of the spot price of gold

now there are several different ways to

invest into gold miners

there's the big boys such as barrick or

newmont and these are established gold

miners that are actually pulling the

gold from the ground

refining it and selling it they can be

an option but there's also junior miners

who might represent a greater potential

for profits

these are companies that are either in

different stages of exploring for gold

or they're getting ready to go into

production and actually extract it from

the ground

they could either sell off to a larger

mining company

or they could actually start to turn

profits by simply mining the gold

themselves

while there are a lot of junior miners

out there one i would like to highlight

is blue lagoon resources

now the photos you just saw are from

blue lagoon's dome

mountain gold mine when i think of the

dome mountain i think of this

massive mountain full of gold and silver

just waiting to be tapped

only about 10 percent of it has been

explored so far

but so far the results have been very

exciting

in fact their shares have gone up nearly

100 percent

since july blue lagoon is looking at

doing some more drilling to actually

search for more gold

this will start on january 11th of 2021

so the time might be right now to look

at them as an investment

this summer they're looking at possibly

going into production

or they might sell off to a larger

mining company which could

have potential profits as well now i

always recommend

doing research into these companies

before throwing money at them

and definitely looking at the management

staff

i have had the ceo of blue lagoon

resources rana vig

on my channel several times to talk

about their company

in fact if you want to watch my most

recent interview i'll put a card

up in the corner as well as a link down

below in the description

that you can check out for yourself now

ronnievig

is responsible for two of the biggest

deals in the canadian venture market in

the past

two years if you want to learn more

about blue lagoon resources

specifically i will leave some links

down below in the description

to check out their presentation and

their company's website

one thing that i always have to mention

in regard to investing in mining

companies is

that there is risk this is not the

safest way to invest in gold by any

means

so always make sure you do your own

research but there are potential

profits one good thing about gold mining

is that the median

global cost all in sustaining to mine

one ounce of gold

is about 975 dollars

so with the gold spot price of right

around 1850

there's lots of profits on the table

there so once they find the gold these

companies can be

very profitable but again the safest way

to invest in gold

for beginners is always to just buy

physical gold

of all the different types of physical

gold you can invest in

my favorites are the american gold

eagles the american gold buffalo is very

beautiful but it costs

slightly more so for investment purposes

the gold eagle is in my opinion the best

it does come in four sizes there is the

one

10th ounce american gold eagle that is

one of the most popular sizes because

it's the cheapest and obviously the

smallest

then the quarter ounce is very popular

as well

this is probably one of my favorites the

half ounce is the least popular but it

is still

a great investment piece and then the

best

is going to be the one full ounce

american gold eagle

because this has the lowest premium all

right so there you go that was gold

investing

for beginners i know we talked about a

lot of different things

we talked about physical gold etfs we

briefly mentioned futures and we did

talk about gold mining stocks as well

if you have any questions regarding

investing in gold

feel free to leave a comment down below

don't forget to check out blue lagoon

resources again their website and

information is in the description

i want to say a massive thank you so

much for watching this video and i will

see you all in my

next one silver dragons

out