Recently we brought you a blog  filled with tips and advice for investing in silver.  Today’s blog is going to be similar and yet quite different as it focuses on  the precious metal gold, including gold coins and gold bullion. If you’re looking to diversify your portfolio and invest in a bit of one of the world’s most famous and popular metals then you’ve come to the right place. So sit back, relax and as usual,  enjoy.

Investors who  love gold will tell you that, if you want to protect your investment against inflation, weakness at the stock market, currency fluctuations and many other financial uncertainties, there is one item that you must have in your portfolio and that is gold bullion and/or gold coins. Most experts will say that, if you’re going to invest in gold, you should do it  as a long-term investment and be prepared to hold onto it as long as possible.

The type of gold that you should invest in depends on the reason that you’re interested in investing in it in the first place. If you want to hedge financial uncertainty or take advantage of a price movement then you would do well to invest in contemporary gold bullion coins. Most experts agree that both this type of gold coin and historic gold coins normally trade at modest premiums over their melt value and enjoy internationally strong  liquidity, so interestingly neither one is probably an equal bet.

Some investment experts will tell you that gold is ‘ wealth insurance’  and that the best time to buy it is when you can. They will also tell you that you can’t approach gold the same way that you would stocks or investing in real estate. Even further, some will say that the best reason to buy gold is to make sure that, when economic catastrophe looms like the kind were seeing in Europe and Japan right now, gold will suddenly appear like a very intelligent investment.

As far as who is investing in gold you might be surprised to know that it’s not the super-rich by any means. In fact, teachers, dentists, carpenters, attorneys, small business owners and university professors own gold, usually in the form of bullion or coins as we mentioned,  which has made gold a  very popular part of many portfolios. Recently a Gallup poll showed that gold was rated the best investment by 34% of American investors, higher than stocks, bonds, bank savings and real estate.

One of the biggest differences between gold and the vast majority of capital assets is that gold is the only one that does not rely on someone else’s ability to pay in order to get its value. Unlike bonds, stocks and other investments, gold is always an asset for you but never a liability for someone else. Even more, no matter what happens with the dollar, the stock market or the economy, gold is tangible and has an intrinsic value that cannot be overstated.

As far as how much of your portfolio should be made up with gold investments the general rule is between 10% and 30%. A recent analyst on CNBC advocated investing 20% of your portfolio in gold if you’re keen on protecting your investments from the current economic, financial and political situation happening all over the world.

There are also in gold stocks that you can invest in but most people make the mistake of thinking that they are an exact replacement for physical gold in coins or bullion. If you ask some mine owners about their recent experience with gold stocks they will more than likely express their dismay that, even as the price of gold rose, their stocks failed to do the same. Keep that in mind if you’re keen on purchasing gold stocks.

Well, we sure hope this information has been golden (excuse the pun) for you. Good luck with your adventures in gold investing and always remember to invest intelligently. See you back here soon

Filed under: Gold

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