Making Wise Gold Investments by Avoiding Coins

Most investors advise that you have a portion of your portfolio in gold. This is because the price of gold has been rising for decades, making it one of the safest investments. It’s also expected that gold prices will skyrocket in the coming years because of the shortage around the world. Take a look at the reasons why gold is a good investment and how you can be the most successful trading this commodity.

Make Gold Part of Your Investment Portfolio

Gold Investment Portfolio

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It’s never a good idea to invest all of your resources in one thing especially a physical commodity. However, you definitely should have a portion of your investment portfolio in gold. If there comes a point in history when the U.S. dollar no longer has any value, you’ll be glad you invested in gold because you’ll still be able to get the things you need to live. And, with the shaky economy, nobody can be certain about the future of the U.S. dollar.

There are a couple different ways to invest in gold. You can purchase gold bullion bars, invest in gold futures, or buy gold coins and jewelry. The best method is gold bullion bars, but gold futures, coins, and jewelry, are easier to store and acquire. You’ll have to choose the best method for you but don’t miss out on your opportunity to buy gold while it is still at an affordable rate. You’ll be grateful you made this sound investment even five or ten years from now.

Understanding Gold Futures

Gold Futures

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If you don’t want to store gold as a physical commodity, you can buy gold futures. This is the second best way to invest in gold, but it can backfire because you are given a dollar value instead of a physical commodity. So, when you go to trade your gold futures, you might not get their true value. However, gold futures are a good option if you don’t have the space to store gold bullion bars and you don’t want to pay for a safe deposit box at your bank.

Avoid Investing in Gold Coins and Jewelry

Gold Coins

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Even though gold is a good investment, gold coins and jewelry aren’t the best choice. This is because the gold in gold coins and jewelry isn’t as pure as the gold in bullion bars. Plus, some people don’t want to buy gold coins and jewelry because they don’t want to melt them down. Additionally some gold coins have historical value that prevents them from being sold at their true gold value. You’re better off investing in gold bullion bars, if you can afford it. They are the easiest form of gold to trade because the value is easy to determine.

Add gold to your investment portfolio for some variety. You’ll be glad you made this decision if the U.S. dollar ever drops to an all-time low. Do you have any other advice for people looking to invest in gold?

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