Investment in gold?
I recently retired and my wife and I are comfortable but by no means wealthy. Have zero credit card debt but was wondering if buying some gold is a good idea? I’m actually scared of the next four years.
Terry Says
Well, gold has a long tradition of protecting against currency devaluation. But in recent years, it hasn’t performed that well. And it is very volatile. Also, if you buy gold bullion, you don’t get any interest, while money in the bank (or T-bills) is now earning 4.3%. That’s kept pressure on gold prices.
There’s no reason not to diversify, but you might want to look into a gold shares mutual fund. At least those companies make more profits when gold bullion prices rise — and they pay dividends. Or if you want to buy a stock that absolutely tracks the price of gold you can buy GLD — the exchange traded fund listed on the NYSE.
If you’re going to buy coins, do so from a reputable dealer. Find one at Money.org — the website of the American Numismatic Assocation.
