Gold can be one of the most important and protective elements in your retirement portfolio. Beyond its most common importance as a means to diversify a portfolio, because of gold’s relative rarity and its special qualities as an asset class––in a way unlike most other investments––gold doesn’t move in line with other assets such as equities or property.
Consider gold like insurance for your portfolio. Most investment experts recommend that investors allocate anywhere between 5%–15% of their portfolios into gold.
You wouldn’t trade an insurance policy, so don’t trade your gold.
Gold tends to hold its value against inflation––i.e. Gold can go up during periods of inflation and drop during periods of low inflation. Currently, the inflation rate is very low––in fact, many argue that it’s too low and worry about potential deflation. Gold will hold against deflation as well.
Over the long term, gold is still considered one of the best hedges against inflation or deflation available.
Other factors that favorably act on gold’s value are low growth, big public debts, and high unemployment – all things that have not subsided since the Great Recession. Precious metals continue to find support in both retail and institutional investor portfolios. This support recently got another boost from another class of investors – elite billionaire hedge fund managers.
Physical gold is a universal finite currency. Did you also know that it is coveted and held by most central banks?
Gold is a good way to ensure wealth preservation and for passing wealth from one generation to the next. The true benefit of gold is best realized in owning the physical product: gold bullion. Only once you’ve got bullion in your portfolio, then can other investments such as mining shares, investment funds, and other more speculative gold investments be considered.
Bullion coins allow investors to own investment-grade gold legal tender coins guaranteed by the integrity of the governments that produce them.
While bullion coins can also have numismatic value which can add to the investment value of coins––case in point, the rise in value of previous issues of Chinese Pandas––the value of bullion coins and bars is more often determined by the price of gold, and thus follows the bullion price.
Gold, silver, and platinum are all available in the form of bullion coins, minted in the U.S., the U.K., in Canada, Austria, Australia, China and other countries. Most bullion coins are minted in a variety of sizes and denominations but for investment purposes one ounce coins are most recommended as having the most value and lower premiums. One-ounce gold bullion coins such as American Buffalos or American Eagles are by far the most popular for both small investors and larger scale buyers who see the advantages of owning legal tender bullion coins, either in their possession or in depositories, and recognize the advantages of the divisibility and liquidity afforded by them.
Now that you know where to begin you’ll want to know more about understanding the basics of precious metals investing, the pros and cons of investing in gold, how to start investing in gold, and more. The best place to start finding answers your questions and discovering the vital information that could save you thousands of dollars is in our new mini-course. This valuable guide is available for FREE download and is certainly worth a minute of your time to acquire.
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