Sunday, March 29, 2009

Gold Investment FAQ

Q. What kind of gold should I buy?

A. What you buy actually depends upon your goals, or why you want to buy gold. If your goal is simply to capitalize on gold price movement, then gold bullion coins will be the best option for you. If you are interested in long-term asset preservation, then you might want to include pre-1933 European and American coins that carry small premiums, which offers even greater degree of safety than gold bullion coins.

Q. When should I buy gold?

A. With the world economy in turmoil, the best time to start buying gold is now. Gold has been proven recession proof. Buying gold coins is the most practical method of owning physical gold and protect personal assets from instable economy. It is better to be a day early than an hour late.

Q. What percentage of assets should I invest in gold?

A. The general rule of thumb is 10% to 30%; and how high you go within that range depends upon your analysis of the current economic, financial and political situation.

Obviously, the individual with a low level of concern about the current economic situation will tend toward the 10% level. Those with lagging confidence in the way things are going will gravitate to the higher end of the range. In recent months, we have had a number of investors go substantially over the 30% figure based on their own reading of the economy and the various investment alternatives available.

Q. What's the common mistake investors make when starting gold investment?

A. The common mistake that investors usually make at the begining is buying a gold investment that bears little or no relationship to his goal. Take safe-haven investors for example. Most often they simply want to add gold coins to his or her portfolio mix, but too often they ends up with a leveraged (financed) gold position or a handful of exotic rare coins instead.

Q. What's the best kind of gold as safe investment?

A. If you want to protect your assets against inflation, deflation, stock market weakness and potential currency problems -- in other words, if you want to hedge financial uncertainties, there is only one portfolio item that will serve you in all seasons and under most circumstances -- gold coins. With the world economy in turmoil and gold prices soaring today, I highly recommend you investing in gold coins.

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