Running on fumes?

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Above is the chart that I am watching for the Dow Jones Industrial Average. The market seems to be going up on fumes right now, and I am very cautious about the stock market in general.

I have been out of the market for some months now, and my strategy is to accumulate cash for what I think is a significant top that should last for a long time. Looking at the sentiment in the market, everyone is way too optimistic right now is my guess!

A few tips on buying gold

My analysis tells me that most assets could see a drop in value compared to cash, and thus I am not fond of investing in gold either. However, depending on which currency you are holding there can be a reason for having some gold anyway as diversification.

Now, how do you go about investing in it? Well, you could buy an ETF like GLD but if the storm hits you will not really have any physical gold anyway so that is not a good idea.

If you don’t want to store your precious metal yourself you can use a service like www.goldmoney.com where you pay a fee for the storage and a spread for your purchase. With this service though the spread is only 0.5% which is good enough but then you also have to pay for storage. Overall Gold Money is a good service which I have used myself and I recommend it.

If you would like to store your own gold and be able to look at that shiny piece of art each day then you can find various services on the web. Beware though for service providers that want to fool you on the spread. Living in Sweden I have looked at a few suppliers and the cost varies quite a bit.

One example is Gold Direct where you pay a spread of 3.18% for a 100g bar and above 11% spread on coins. Coins are more expensive than bars and for pure investments, you should always go with the bars!

Another example is Norsk Svensk Guld AB where the spread is 2.56% on the 100g bar.

Happy investing!

 

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