On my main page I’m pretty sure I said something about the fact that I had planned to show all my readers what I am doing to make money. So far I haven’t been doing that. Well I am not going to make it up to you (sorry), but I do plan to start telling a little more about my investing strategies I use to make a few extra dollars.
Right now the economy is sort of on the fritz. Things are jumping up and down from day to day based on daily news and such. For the people with a little extra cash to play around with, this is the perfect time to make a little extra cash. My brother started doing this before I did. He has had some good success with it so I have been trying it out too.
So what am I doing?
I am investing in gold. The main strategy may sound overly simplistic, but it is. I buy low and sell high. I wait for gold to dip down for a few days then I jump in. Usually within 1-3 weeks it will go back up and I will sell. The market is pretty volatile so it has been yo-yo-ing around like this for a while. Here is a 30 day chart of the price of gold.
Where to buy it:
Personally I buy from kitco. They seem to be the leader in tracking precious metals and they are a pretty safe place to buy and sell from. What I use are their “pool” accounts. This means that I am buying gold, but I don’t have to go through the hassle of shipping it to my house then shipping it back out when I am ready to sell (usually less than a month). With this type of account, you can buy and sell anytime, in real time.
When to sell:
This whole strategy might not be for you if you would freak out if you lost a few percentage points on your investment. Like I said, it is risky because the market is volatile. But with great risk comes great reward. The main reason I feel now is a good time to invest in gold is since the economy is doing poorly. This should drive up the price of gold (and already has). Once I think the economy is starting to turn to the good side, I will be out (like a fat kid in dodgeball). This is because the price of gold could go down and not come back up and then I would just be out of luck. I feel like I will be able to keep on playing the dips for at least a year though. I always keep up with financial news though. This way I get a general idea of how the market is doing.
How I have done so far
Well this was my first time doing it so I don’t have a lot of impressive results. But so far I am up about 3% over the last two days. Not a bad rate of return, but I have not sold yet so this return isn’t really locked in yet. It could go back down. I have only bought 6 oz. of gold which is a lot of money, somewhere around $5k. I will keep you posted on how I am doing on my investment later.