John “THE GREAT” asked:
I looked at an ad in the newspaper about buying gold coins from the government , I’m a little unsure about the whole buying gold as an investment thing, but several people have recommended it as a safe security. What do you think?
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{ 3 comments }
Gold… Safe????? Not if you bought it in 1980 @ $800. After that peak in 1980, the price of gold mostly stayed between $250 and $500 an ounce until 2006. That’s 26 years of not being “safe”.
Buying gold as an investment makes some sense. But never buy something like gold & think it’s “safe”… that’s just nuts. I would suggest that gold be no more than 2% – 3% of your total portfolio.
Look at your asset allcation model. See how you can fit it in. Don’t buy the metal. Buy the ETF GLD. No shipping or storage fees. A decent on line broker can sell you $100,000 worth for less than $20 in commissions.
Good luck.
Gold is not an investment. All that stuff you here in the media about gold is all garbage. They are just companies trying to sell gold to you whether its good or not for you. Gold should be bought as protection against inflation by people such as yourself. Trading in gold should be left to the pros.
If you hold physical gold at all, a percentage of your portfolio should be in certified rare gold coins for the sake of diversifying to preserve your investment.
As an investment, rare gold coins certified by NGC or PCGS offer more security than relying on the up and down movements of the current price of gold.
When you decide to liquidate, you can sell them back to the company you bought them from or to any of thousands of authorized gold dealers around the country. This helps make your investment more private as well.