Gold has been a symbol of wealth and used as currency for thousands of years. It is in fact the only asset that historically has maintained a relatively high value in good times and times that weren't so good.
In uncertain economic times, the value of many investments such as stocks and real estate tends to diminish, then go back up as the economy improves. Gold provides a "hedge" against the devaluation of your portfolio because its value actually tends to increase while that of other holdings decreases.
For this reason, investors have long recognized the value of acquiring and holding onto gold. And one of the easiest methods of doing this is buying gold coins.
The advantages of investing in gold coins are many, including:
Tips for buying gold coins:
- They are readily available from a wide variety of sources.
- They can usually be bought at a bargain when other investments are doing well.
- The worse the economy gets the more valuable your gold coins will be.
- Gold coins can be quickly and easily sold for cash when the need arises.
- They are easy to store.
- Gold funds (mutual funds that invest in gold) allow you to "buy gold" without actually having to purchase gold coins and store them on your own.
- Shop around because prices can vary widely.
- Look for bargains on the Internet (but be wary of scams).
- Compare the track records of several gold funds before choosing one to invest with, and be sure to consider the fees.
- As a rule of thumb, try to keep your gold holdings at around 25% of your total investment portfolio.
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