mardi 27 septembre 2011

Why Invest On Gold Coins? - Find Out The Major Reasons With This Read

By Harry Lee Anderson


Gold coin investing seems like a reasonable thing to do. After all, there are a lot of reasons why you should consider investing in gold coins. For instance, gold is affordable even though stocks are expensive. In 1980, the price of gold and the Dow Industrials went to the same level of 800; but in 2003, the Dow went to level 10,000 while gold was less than half its previous value. Hence, you will find good opportunities in gold stock.

Another reason why you should invest in gold coins is due to the fact that the government makes money worth less so it can pay off its debts. The government has the ability to produce more money but it cannot produce gold. It is easy to acquire paper money, but it is difficult to acquire gold. Remember that gold can do well during international conflicts. In fact, during World War I and World War II, gold price was fixed.

Gold coin value is the same throughout these years; but silver has risen in value. Even so, gold can still do well in bear markets. During the Great Depression, silver has doubled in value. In 1968 until 1980, another bear market transpired and the value of silver went from $2 to $50. Each time inflation or deflation occurs, gold stock goes up. Hence, you can say that investing is gold is indeed a good idea. Even if the dollar goes down, it still goes up.

When there is inflation, interest rates go up and a lot of paper money is printed. So, the price of gold rises and if you buy gold investments, the risk in your investment portfolio goes down. It is during these times when investing in gold is most appropriate. During the '70s, '80s, and '90s, however, investing in gold may not seem like the best idea; but during present times, the value of gold is high, so you can easily smooth out any fluctuations in your portfolio.

There are a variety of ways on how to start gold coin investing. You should take this step seriously for hundreds or even thousands of percentage can be made from futures and options. However, you should remember that you losing everything can also happen. Other than the gold bull market, you may also opt for junior mining stocks and blue chip mining stocks. Junior mining stocks can be risky but blue chip mining stocks can be a good way for money-making.

If you go for blue chip mining stocks, you will find plenty of operating mines. This means that you will get a chance to make more money. Nevertheless, gold stock mutual funds, raw gold, and investment grade rare coins are other feasible ways on how to start gold investing. Of the three, gold stock mutual funds is perhaps the best option. If you choose it, you can have a chance to succeed even if you are not an assay expert.

Nevertheless, with investment grade rare coins, you will be able to benefit from a limited downside. You may want to choose the least expensive but with the highest gold content, though. If you want to directly own gold, you may result to gold bar or gold coin buying. Choosing this option will give you neutrality since there are no outstanding upsides or downsides involved.




About the Author:



Aucun commentaire:

Enregistrer un commentaire