GOLD
Is gold a “safe” option to purchase at this time?If so…….in what form ? Gold bullion,coinage,gold certificates?Not as a primary investment,but perhaps as a “ backup.”
Terry Says
Gold hasn’t performed as well as one might expect in a crisis. It rallied to $1700 as the stock market decline began, but since has dropped back to around $1500/ounce. That happened partly because gold mining stocks sold off along with the general market as the world searched for liquidity, not security. There’s actually a big difference between the two.
Now, that may change. The Fed has committed to creating a huge new pool of liquidity. In the end, that may be considered inflationary and could stimulate gold to higher prices. But in the meantime, you don’t need gold to operate on a daily basis.
I’ve long said that when the true crisis comes, no one will trade a loaf of bread for a gold coin. In reality, I think it’s turned out that no one will trade a roll of toilet paper for a gold coin!
Personally, I do expect gold prices to move higher at some point in the future. If you want to speculate on that, trade the NYSE-listed Gold ETF, symbol GLD. (Full disclosure, I’ve owned that for a long time.) If you want to purchase bullion coins, beware of ripoffs. Find a reputable dealer at the website of the American Numismatic Association, www.Money.org.
