Gold and rich people

midievmidiev Posts: 1 Tin ✭
One year ago, I started talking about gold to one of my collegue (a very wealthy one) and even tough he was kind of curious about it, he wasn't convienced to buy some.

So I challenged him.
Do your friends buy gold ? , I asked.
No he said, not even my financial planner.
Fine, but do you know someone very very wealthy ? I replied.
Of course. One of my best friend is a multi-millionaire, he answered.
Ok, then ask him what percentage of his wealth he puts in gold I asked (it was pretty risky a must say...)
Fine, I text him right away... (few minutes later, he showed me the answer...) 30%!

Few weeks later, he was buying some gold. Lesson learned.
Don't trust your financial planner. Do what the rich people are doing.

Comments

  • KimKim Posts: 636 Bronze ✭✭✭
    edited December 2015
    @midiev, awesome! Great advise.
  • GLDGLD Posts: 49 Copper ✭✭
    midiev said:

    ...... 30%!........Few weeks later, he was buying some gold. Lesson learned.
    Don't trust your financial planner. Do what the rich people are doing.

    Great comment, midiev.

    Yes! Financial planners don't make money off customers invested long term in gold or silver bullion, therefore they almost NEVER recommend. To be fair, bullion can be highly volatile and cumbersome to liquidate, which is usually their excuse. But , right now, both gold and silver is priced at about what it costs to "extract it" .... it can get cheaper from here, but not likely for long.

    I possess it mostly within my RRSP account (canada, tax exempt) through my banks online trading page. Yes, it is risky because i am relying on the storage facility, the bank and my government not to steal it before i can get to it (taxes, confiscation ). But at least they can't do that without publicly admitting to it.

    I believe everyone should be 10-15% bullion in their RRSP right now ....minimum ..... and NOT the paper gold/silver ETF's...... real bullion, stored off your banks properties. If bitgold can provide that as an option in the future that would make it super easy !!!
  • GoldfingerGoldfinger Posts: 128 Copper ✭✭
    Hi @GLD I am in Canada as well may I ask which Bank you use for online trading... I had a TD account at one time but the cost for trades was too high.
  • GrandpaBrianGrandpaBrian Posts: 679 Silver ✭✭✭✭
    I took a different approach... I buy my gold using BitGold and I buy GoldMoney Inc stock via on tax free trading account. That gives me two ways to have a position in the gold space.
  • KimKim Posts: 636 Bronze ✭✭✭
    @GrandpaBrian, I'm learning from you every day!
  • GLDGLD Posts: 49 Copper ✭✭

    Hi @GLD I am in Canada as well may I ask which Bank you use for online trading... I had a TD account at one time but the cost for trades was too high.

    I bank at the Bank of Montreal. They have their own Gold or Silver Bullion plan , but you can also buy the Sprott Bullion funds ..... in both cases the bullion is actual AU/AG not paper, and is stored off site. The bank has no claim against it nor can it borrow against it ... so if it were to go bankrupt, supposedly it could NOT claim those assets as its own.

    The BOM bullion fund did have a trading fee of like $125 ...... but spread over a $10,000-15,000 purchase its not really all that much of a hit. The Sprott funds are your regular $10 trading fee i believe. All BOM trades are $10 but i think you need a minimum balance of $250,000 in the entire account ..... otherwise its $29.99 i think. Not too bad .... brokers used to be $40.
  • GoldfingerGoldfinger Posts: 128 Copper ✭✭
    Thanks @GLD I am going to check out GoldMoney and see what the cost are I would like to stock up on silver
  • rohanibuang61rohanibuang61 Posts: 2,379 Gold ✭✭✭✭✭
    Gold and Silver always exist with intrinsic value. 1200 years back to buy goat cost gold 4.25 gram and now the price of goat is 3.95 gram. Can fiat money sustain the same and gold did?
  • KimKim Posts: 636 Bronze ✭✭✭
    @rohanibuang61, nice analogy. The answer is no. :smile:
Sign In or Register to comment.