LIVING OFF DIVIDENDS & PASSIVE INCOME

The first question you’re probably asking is whether gold is a good investment to begin with. Take a look at the performance of gold prices over the past 5 years versus the stock market.

As you can see, gold is up over 100% while the Dow Jones Industrial Index is down over 20% for the same period. Of course, the best time to buy gold was few years ago, but its still not too late. The Federal Reserve is doing its best to devalue the US Dollar (buying $300 Billion in US Treasuries will do that) and gold prices should continue to rise.

So how does one invest in gold?

It isn’t difficult and there are 3 main ways:

1. I like buying gold coins. You can choose between collectible and bullion gold coins.  As the price of gold has increased, the spreads on the collectible coins have increased as well. Check out this list of my favorite gold coins. You can also buy gold bars, but the coins are more interesting and are likely to appreciate more as gold awareness increases.
2. You can also buy the Gold ETF (GLD).
3. You can also buy the Gold Miners ETF (GDX). I’ve also invested in this. Gold doesn’t offer any yield, so I periodically sell covered calls against this position to generate some income. Since gold stocks are incredibly volatile, the calls haven’t expired in the money yet. (which means they expire worthless and I get the keep the premium).

So whats your favorite gold coin?

• Gold At $100 Off Its 2006 Highs Gold has retreated quite a bit since its high of $730 on May 11th 2006. Its currently trading around $630/oz. I see this as a good buying opportunity. While I'm against dollar cost averaging, I think gold is in the beginning of a bull cycle and this justifies buying on......
• 1 Ounce Silver Dragon Bought a 1 ounce silver dragon coin on Ebay. Its a beautiful coin, minted by the Perth Mint in Australia. [As I mentioned in a previous post, I'm a big fan of the Perth Mint's Golden Lunar Series.] Don't know why I bought it. Maybe its because I like......
• Gold Play: Great Time To Invest As I've mentioned before I think the US is going to enter a period of inflation and recession brought on by the trade & budget deficit and precipitated by the devaluing dollar. Both Oil and Gold have been in a slow and quiet bull market for the past few years.......

• Gold Coins Coins and Paper Money -> Coins: US -> Gold Before you decide to purchase gold coins, there are a few things that you need to know to avoid being taken advantage of. While most dealers are honest, it is vital to take these steps to ensure you are dealing with......
• From The Good Human Archives - February. For new readers of The Good Human and for those of you who may have missed them the first time around, here are a few of my favorite articles from February of years past. With well over 1,300 articles on the site, it's easy to miss some - I forget......
• Top Gold and Silver Dealers - Invest Directly in Coins, Bars and Wafers I just wrote about what Peter Schiff has to say on the topic yet in his new book Bull Moves In Bear Markets. In a previous post, I said that I thought the best way to invest in precious metals was to go through GoldMoney (read what I had to......

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