HOW TO BUY GOLD COINS
Buying gold sounds complicated, however in reality it is a fairly simple process. Many people can’t wrap their head around the idea of owning Gold, physically, because they have no idea where to begin.
Jewelry, Diamonds and Coins – also known as Gold and Jewelry Direct – has 40+ years experience tailoring coin packages for investors of all portfolio sizes.
During that time we routinely here the same questions:
WHAT KIND OF GOLD SHOULD I BUY?
Answer – That depends upon your goals. If your goal is to preserve financial uncertainty or capitalize on price movement, then bullion coins will serve your purposes.
WHEN SHOULD I BUY?
Answer – Gold, first and foremost, preserves your wealth. Approaching it the way you think about stock or real estate investments isn’t relevant. Timing is not the real issue. Whether you think you need to own Gold is the real question. If the answer is yes, we see no benefit to delaying your actual purchase. The real goal is to diversify your overall wealth so it is not compromised by economic dangers and uncertainties like the kind generated by the 2008 financial crisis, or those unfolding around the world today.
SHOULD I WAIT FOR THE NECESSITY TO APPEAR AND THEN BUY GOLD?
Answer – As concern about a financial or economic breakdown spread, as in the past, periods of gold coin bottlenecks and actual shortages occurred. At the height of the 2008-2009 financial crisis, demand was so great that the national mints could not keep up with it. Premiums increased on all gold coins and a people clambered for what was available.
WHAT IS YOUR OPINION ON GOLD STOCKS?
Answer – Gold stocks are not a substitute for real gold ownership, in its physical form, as coins and bars. Instead, stocks should be viewed as an addition to the portfolio after owning physical gold coins or bullion.
WHAT ABOUT GOLD FUTURES CONTRACTS?
Answer – Futures contracts are considered one of the most speculative arenas in the investment marketplace. The investor’s exposure to the market is leveraged and the moves both up and down are greatly exaggerated. For someone looking to hedge his or her portfolio against economic and financial risk, this is a poor substitute for owning the metal itself.
HOW DO YOU FEEL ABOUT ETF’S?
Answer – It is difficult to take delivery from any of the ETFs, they are generally viewed as a price bet and not actual ownership of the metal. If it’s on paper, that is all you have – paper. Most gold investors want possession of their gold because they are buying as a hedge against an economic or financial disaster. Should disaster occur, it won’t be beneficial to have your gold stored in a distant facility by a third party. For this reason, over the past couple of years the trend even with hedge fund operators has been away from the ETFs. In 2011, ETF sales plummeted while purchases of physical coins and bullion for delivery skyrocketed.