Gold Coins, Bars, Certificates & Accounts

Why to Invest In Gold Coins, Bars, Accounts & Certificates

Gold Bars & Coins There are many reasons why you should invest in Gold Coins, Bars, Accounts and Certificates now. Some reasons are more convincing than others.

Gold Coins : Physical gold is the basic form of gold investment where investors are known to hoard them up as a defence against inflation. You can invest in gold in the form of bars and coins.Gold Bars include the Credit Suisse bars which are well-known all over the world. However, such bars are known to be selling above the prevailing gold price and may not be a wise choice in the long run as they can be hard to dispose off when you really need the money.

Gold Bars : My recommendation will be to go for Gold coins like the American Eagle or the Canadian Maple Leaf as they usually trade closely to the gold price. Many people will feel that the hoarding of these coins are an hassle and we should go for gold accounts set up by banks instead. I will like to remind all that history has showed us that in times of turmoil ie the Vietnam War, only physical gold bought people a safe ticket out of the war zone. For the sake of your family’s future, I will advise keeping ten percent of your networth in physical gold In the form of Gold COins & Bars.

Gold Accounts : Another way to invest in gold will be using the gold accounts of banks. The units in the gold accounts in the banks are backed up by physical gold held in the banks and the banks will give the assurance that you can convert your gold back to cash anytime. The only disadvantage is that the fees for such services can be as high as 1 percent each year and over the long run, you may be making your bank richer than you. In another worst case scenario that the bank collapses, it will definitely be a challenge getting your gold back. Most Swiss banks offer gold accounts where gold can be instantly bought or sold just like any foreign currency. Digital gold currency accounts and the BullionVault gold exchange work on a similar principle.

Gold Certificates : A Gold Certificate of ownership can be held by gold investors, instead of storing the actual gold bullion. Gold certificates allow investors to buy and sell the security without the hassles associated with the transfer of actual physical gold. For the passive investors, you may like to consider buying into gold certificates but do note that these certificates usually invest in companies that are involved in gold production. This means that you are also investing in the management of these companies placing faith that they are upright. Gold funds offers diversification to most investors and is a lazy way to gain exposure to different gold companies all over the world. Of course, you will have to factor in the management fees as well as the possibilities that the under performance of the fund managers.

Six (6) Reasons to Invest in Gold Markets
1. It's super cheap. Gold is cheap, while stocks are expensive. In January of 1980, both the Dow Industrials and the price of gold were at the same level: 800. Now, nearly 24 years later, the Dow is near 10,000, while gold is less than half its January 1980 value. There are some great opportunities in gold stock, as we'll report below.

2. Governments will make our money worth less to pay off their record debts. Governments can print money to pay off their debts. But they can't create gold. The supply of paper money can be infinite. But the supply of gold is extremely limited (they say that the entire gold production in the history of the world could fit on the basketball court at Madison Square Garden). And it's difficult to extract. Bill Gates could buy all the gold mined in the world in a year from his checkbook.

3. Gold should do well in major international conflicts. The price of gold was fixed during World War I and World War II. But silver, for example, rose by over 100% in both world wars. It's been rising for the duration of the War on Terrorism. It all comes back to #2, above...governments ultimately print money to pay for wars.

4. Gold should do well in extreme bear markets. Silver more than doubled in value from 1932 to 1936 during the Great Depression (the price of gold was fixed by the government). The next long bear market was 1968-1980. Silver rose from around $2 in 1968 to a peak near $50 in 1980.

5. Gold stock will rise during inflation... and during deflation. Investing in gold is good inflation protection... gold rises as the value of the dollar falls. But what many people don't understand is that gold stocks will do even better during deflation, as the government lowers interest rates significantly and wildly prints money (creating inflation) to offset that deflation... leading to substantially higher gold prices. This is where we are now, and gold has done what it's supposed to do.

6. When you buy gold investments, you lower risk in your investment portfolio. In the past, gold has tended to do the opposite of stocks...it skyrocketed in the 1970s, when stocks did horribly. Then in the 1980s and 1990s, when stocks soared, gold lost over half its value. Now in the new millennium gold has soared while stocks are still below their year 2000 highs. Holding a portion of your portfolio in gold stock will smooth out your portfolio fluctuations.

Gold Coins, Bars, Accounts & Certificates

Why to Invest In Gold Coins, Bars, Accounts & Certificates

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