When you buy gold, you are buying insurance for your future. The economy is at a low-point now and the dollar is not doing very well. However, the value of gold is still rising, inversely proportional to the value of the dollar. Diversification is the best way to ensure that you and your family are protected in the future, regardless of what happens to the economy. Investing in stocks, bonds, and precious metals is a way to cover all bases. Many people found themselves destitute after the stock market crashed and all their years of investments were gone. Investing in multiple areas can ensure you are not left penniless when retirement comes along. Doing your research prior to beginning this endeavor is very critical to the success of your portfolio.
So, now that you are ready to invest, where do you buy gold, how much, and from whom? Some people invest in stocks that invest in gold bullion or in gold-mining companies. This is in lieu of purchasing actual gold bullion. The investor does not have to secure gold, store it, and deal with liquidating the gold if needed. However, when the stock crashes, so does your investment, even if the value of gold is still going strong. So, in essence you are not primarily investing in gold bullion, but in a side business that is not solely dependent on the value of gold.
Bullion coins are gold coins assessed by weight. The value of bullion coins is determined by their precious metal contents and not by rarity or condition. Coin dealers and brokerages buy and sell bullion according to the market value at the time of purchase. The value of gold has been steady over the years and continues to be a great asset in any portfolio. Numismatic coins are valued by their rarity, year, and the quality of the coin itself. Only very experienced coin dealers and individuals well-versed in gold coin value should invest in coins in this manner.
Purchasing bullion should be done after a considerable amount of research. Finding a reputable dealer is very important when buying gold. Some dealers will overcharge on their gold bullion, so it is important to comparison shop when looking for coins. Get an independent appraisal of the bullion you are prepared to purchase to ensure you are not being charged inflation. Remember that the value of the coin is dependent on the melt value of the gold coin and it has nothing to do with the condition of the coin itself. Also, it is suggested to check with the Better Business Bureau to determine if there are any complaints about business practices.
How much should be invested when you are buying gold? When thinking about your available funds for investment purposes, gold bullion should just be a fraction of that amount. It should be one of several types of investments, including silver coins. Gold is a steady bet that continues to perform well over the years. Silver investment is much riskier and not guaranteed to perform in any certain manner. Other investments such as stocks and bonds should also be used to ensure diversification. It is best to have money invested in the dollar, so when the economy is high you are doing well. It is also wise to invest in precious metals, so when the dollar is low your value of gold is increasing. This is a balancing act that can ensure your portfolio is always in the green.
Investing in gold is a very smart decision in today’s economy. The value of the dollar is at a low and inflation can occur as long as the Federal Reserve continues to print dollars. If the Federal Reserve crashes, you can ensure that the value of your gold will not be attached to the U.S. dollar. The trading and bartering system will take place and the gold bullion will be accepted all over the world as a form of payment. Having several denominations of gold bullion and silver coins is a great way to diversify and ensure your life can continue, even if the economy crashes. Buy gold and secure your future.