4REEE asked:
I heard this gentleman on the radio yesterday, Sunday. He talked about gold as a hedge against inflation.
The example he gave was that in 1920 if you had a $20 gold coin and a $20 bill, back then you could buy a nice suit with that.
Fast forward, today, that gold coin is now worth nearly $1,000 and can still get you a nice suit.
But the $20 bill today won’t even get you a nice tie and lunch.
I see his point.
I’m scared of the Obama health care plan. I’m scared of the size of our national debt. I’m scared when already they’re talking that Social Security is going to be running deficits possibly next year!
http://articles.moneycentral.msn.com/Investing/ContrarianChronicles/social-security-crunch-coming-fast.aspx?page=1
Then there’s the Medicare problem.
And then there’s our country printing more money. Aye yi, yi.
And to top all of that off, Russia, China, and many other nations are calling for an end to Petrodollars!
a.) So what do you all think about owning gold on paper?
b.) Owning physical gold? If you recommend physical gold, where in the heck would you store it?
c.) What percentage of a person’s portfolio should have gold? Silver? or other precious metals?
Please keep in mind, I AM NOT LOOKING FOR AN INVESTMENT! I’m just trying to preserve what little I have.
Thanks!
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{ 3 comments }
Gold is one of the few substances that will retain all of its value, or rather wont LOSE its value over time, in fact in most cases it increases in value as paper money becomes worth less. there are many ways to go about buying gold.
a simple google search and you should find many places that can help you.
such as goldline.
Owning gold bullion is cumbersome and expensive. If you have a decent amount of it you need to store it and insure it. Also the transactional costs can be a bit steep. Spreads, commissions, shipping, etc. I prefer to own gold stocks. May favorites are Kinross Gold (KGC) and Goldcorp (GG). Another good inflation hedge is oil stocks. My favorite is Marathon Oil (MRO).
And what percentage of your portfolio should be in gold? Normally no more than 10%. But if you want to be aggressive and you believe the Obama government is setting the stage for hyperinflation, maybe as much as 25-30%. Good luck.
a) go for gold – Cash is Trash
b) you don’t store it – it stays with the bank
c) 10% minimum in gold.