What is money? I mean, Real Money. It isn’t a piece of paper. It isn’t a promise to pay on demand. Real Money is something that has intrinsic value. It’s a hard asset.
While no paper currency throughout history has survived in its original form, gold has represented real money for thousands of years.
When paper money fails, those who own gold still have a currency which holds its value despite whatever the banks or Wall Street are doing. If you need an example, think of Iceland––its money lost its value almost overnight.
With the massive levels of debt and the excessive money printing in many countries, including the U.S., the risk of a similar default happening in other countries is very high.
More importantly, gold is an asset that is stored outside of the banking system. Therefore, investing in gold and silver coins should be seen as probably the safest and most attractive investment for storing and preserving wealth.
When choosing gold you have several options for investing. You can buy gold bullion, gold coins, or shares of companies that buy gold stocks or ETFs. If you’re looking to diversify your portfolio with broader range of asset classes, gold stocks and ETFs have all of the same issues as the stock market, the very thing that you invest in gold to protect you from. If the price of gold remains flat, as it has for the last year and a half, gold still holds its real value. Gold stocks and ETFs on the other hand will not invest in new mines because it will no longer be profitable. ETFs are made up of contracts and derivatives, which can be, well, this is what
Warren Buffet had to say about them:
“Derivatives are financial weapons of mass destruction, carrying dangers that… are potentially lethal.”
Enough said?
Bottom line is gold stocks and ETFs are just not physical gold. And the best way of holding gold is in gold coins.
Are you a large scale investor? Then gold bars may be for you. They’re not flexible when it comes to selling because of the gold quantity and price. Coins come is smaller values and are therefore much easier to sell. Coins can also have an added numismatic value beyond the spot price of their constituent gold or other precious metal. This is not just true for collectors’ coins but for investment grade coins as well.
Investment grade coins are of the highest grades and rarity. These are not to be confused with “collectable coins,” these coins are purchased primarily as an investment. The best gold coins for investment are government-minted bullion coins and with low premiums and high liquidity. A gold bar, on the other hand, is much more difficult and time-consuming to liquidate.
RC Bullion has created a new and comprehensive FREE mini-course created to help answer all your questions and offer tips and advice regarding gold and silver investing. In this course you’ll learn how to convert an IRA or rollover a 401(k) into gold coins, how do buy gold or silver in an IRA or direct purchase, what are the pros and cons of investing in gold coins, what are the best coins for investment, and other gold and silver coin investment tips.
Learn how to invest like an expert and make the decisions that could save you thousands of dollars.
