Monday, September 27, 2010

gold is where you find it

Gold, even the word itself conveys a certain meaning of value or worth. You know gold has been globally recognized for well over 6000 years by people and countries both as a means of trade as well as a hedge against inflation or a temporary financial crisis.

Several nations mint bullion coins. Minting coins by a national governments gives the coins a numismatic value to collectors in addition to their value in terms of the sheer raw material. Buying gold coins from a reputable nation state also serves as a way of certifying purity and actual weight. While the level of purity can vary from issue to issue, 99.9% purity is common. Some of the purest mass-produced bullion coins are in the Canadian Gold Maple Leaf series which is convenient for Americans both in terms of the dollar's customary advantage to the Canadian dollar as well as the locational advantage.

When one decides to buy gold bullion coins you have the choice of holding them in trust or often more preferably to most investors, to take physical possession of the coins and having them shipped direct to your home or office. Bullion gold coins are minted for the investment purposes and are commonly preferred because they are tied closely to the daily spot price of gold making it easy for the buyer to monitor their value and trade. There are three commonly traded gold bullion coins used by most investors, they are the South African Krugerrand (in many ways the 'grandfather' of gold coins and the one even casual investors are most familiar with), the Canadian Gold Maple Leaf, and Austrian gold coins. The Chinese Gold Panda is another coin option and is becoming much more prevalent as that nation grows in prosperity and international prominence.

Buying into a gold ira can serve to reduce the volatility of your total retirement portfolio. While historically gold moves counter to the direction of stocks, bonds and mutual funds, this means the technical term is that gold is negatively correlated to the movement of stock prices. $10,000 of gold bullion coins purchased in the early 70s and held (during the oil crisis, inflation, devaluation of the U.S. dollar, Savings and Loan scandal, recession, tech and internet bubble, 9-11, and the real estate bubble, and current recession) would enable you to turn that investment today for something like $305,715.00 given today's spot prices for precious metals.

Whatever you decide and who you choose to hold your bullion purchases, you owe to your portfolio, yourself and your children to take a look into the benefits of precious metal investing. As always, with any typer of investment: do your homework and never invest more than you can lose.


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