These are dangerous times for the average investor and replacing depreciating dollars with gold may be your best form of asset insurance.
When you own gold you have a true currency, the only one recognized and honored the world over. When you own gold, no matter what happens to the economy, whether local or international, your wealth is protected. If tomorrow the dollar were to collapse, the stock market crash, or inflation suddenly skyrocketed, you could go to sleep at night knowing that your personal capital is safe.
Through the many economic catastrophes in human history, one thing remains consistent: those who survive financially do so because they own gold. Gold remains the only universally accepted medium of exchange, the ultimate currency by which one nation, whether capitalist or communist, can settle its debts with another.
The need for gold will be with us for as long as we have a need for freedom and safety from the financial, political, and social storms that have afflicted civilization since its very beginnings.
There are many ways to invest in gold, from exchange-traded funds (ETFs) to gold stocks, but the simplest way is to just buy physical gold – or bullion – outright.
Take a look at some of the options below.
Gold Coins and Bars
For small-scale gold investors, or those looking for the safety of a hard, tangible asset, gold coins and bars produced by government mints can be purchased in a variety of sizes. Bullion coins offer a convenience of portability and scale that makes them the most practical choice for most private investors. Keep in mind that smaller denomination coins carry higher premiums. Your best bet is single-ounce coins. For these coins your most popular choices include the American Eagle, Canadian Maple Leaf, and the Chinese Panda. Numismatic coins or collectibles are another type of gold coin, but unlike bullion, which is worth roughly as much as its pure gold content, numismatic coins are priced based on their collection value.
Another advantage of coins over bars is that they allow you to be more flexible. After all, it’s easier to sell 20% of your gold if you own ten gold coins rather than if your whole investment is in one gold bar. By the same token, given this flexibility, you’ll probably find that coins are much more liquid (easy to sell) than big bars. That said, if you want to buy a sizable amount of gold, say, on the scale of industrial investors or Warren Buffet, then only then would bars make more sense.
Direct Delivery or Vault Storage?
Whether you should take direct delivery depends on your reasons for buying gold and your personal philosophy.
To keep your gold in a bank’s safe deposit box could provide you little protection from the monetary problems that you buy gold to avoid. In the event of a bank failure or nationalization, you accept the risk of losing access to your gold for weeks, months, or potentially forever. This doesn’t even take into account the possible time and effort that will be required to get access to and ship the metal should you want to trade between metals.
Although, while keeping your gold in your own home safe may seem like a good idea, depending on how much you own – especially if it is more than a small amount, home storage may be no better. You’ll need to consider such risks as natural disasters, theft, mobility, and liquidity are all things that could effect your savings.
Vaults, on the other hand, are in many cases run by the world’s most recognized security professionals. These facilities are the same ones used by international banks, governments, and others who require absolute security and complete audit-ability. These vaults also feature round-the-clock armed physical security, state-of-the-art electronic protection, and insurance for the full value of your deposit from Lloyd’s of London. You rest assured knowing that your wealth is being kept safe.
While physical ownership of gold assets by IRAs may not be for everyone, it has become more popular in recent years. Is now a good time to invest in gold? Due to the current low gold prices, the answer is a resounding yes. But even with gold’s current undervaluing, it’s estimated that only about 2% – 5% of IRAs own precious metals. Many investors are missing out on what could be a golden opportunity.
Why should you consider holding physical gold in an IRA? The most compelling reason is because your very retirement is at stake. What could be more sacred to your financial future? In these troubled times gold has always been the ultimate hedge against economic volatility and crisis.
Traditionally, IRAs are dependent on a select group of stocks, bonds, or mutual funds which are themselves dependent on the health of the economy. When the economy suffers, as it has most recently, the value of your IRAs may suffer as well. For its part gold has outperformed the Dow by over 400% over the past decade. No other investment can make that claim.
Therefore, you have to ask yourself: Why wouldn’t you protect a portion of your retirement and secure your accumulated savings with the intrinsic value of physical gold?
To learn more about gold and the many reasons why your portfolio could benefit from gold and silver investing, download our mini-course and gold investing guide. It’s absolutely FREE and is full of tips and information that could save you thousands of dollars. You can also learn more by speaking to one of our experienced investment specialists by calling us at 213-465-4835 or visit us at www.RCBullion.com.
