in what form to purchase gold
I have been interested in purchasing some gold for ten or so years(when gold sold for $800 per oz.). Each time that I made inquiries to investment advisors or companies selling gold, by the end of our conversations I no longer wanted to commit to the purchase. My biggest problem seems to be that I would like to purchase gold by the bar or one-ounce size, but most of the people that I converse with attempt to talk me into purchasing coins or a gold annuity.
I look at things like this: If the economy were to go belly up, and most of my savings, investments, etc. were erased and paper money was no longer useful, wouldn’t this country, as well as other ones, be melting down gold coins into bars making that type of gold possession more feasible?
Terry Says
Gold is the one commodity that has held its value over centuries — and forever mankind has tried to figure out how to make it (think Rumpelstiltskin!) It’s possible that global currencies will break down over too much money creation, and the world will return to a gold standard.
But there are two problems investing for that apocalypse. First, in the mentime, while you hold gold in coin or bullion form it earns no interest. And second, in the event of such a crisis the government will confiscate your gold, just as they did in the 1930s when it became illegal for U.S. citizens to own bullion gold or bullion gold coins.
And finally, when that apocalypse comes, a can of soup or a loaf of bread might be what you want even more than a gold coin!
But I think having a small portion of your assets in gold coins or bullion is not necessarily a bad idea. Store it safely in a bank vault, not as a temptation for burglars at home. Go to www.Money.org — the website of the American Numismatic Association to find a trusted con dealer near you. You’ll likely want to buy bullion coins like the American Eagle or the Canadian Maple leaf, which on any day trade at the price of gold, plus a small service fee.
