Investing in Gold
By: Nancy | January 24, 2008 | Category: Money
On January 24, 1848, a few glistening flakes of rock, plucked from the water near a California sawmill set off America's first gold rush. But I've been noticing a new gold rush under way. TV news shows, infomercials and newspaper ads are popping up all over encouraging people to invest in gold as an alternative to stocks.
During changing or uncertain financial times when stocks and the value of the dollar go down, gold prices often tend to go up, as people see gold, a commodity they can actually hold in their hands, as having ultimately more value to them than less tangible investments like stocks. And as more people buy gold, the demand drives up the cost.
Financial experts disagree on whether gold is a good investment. Some recommend buying just a small amount as part of your investment portfolio because of the highly fluctuating nature of its value. Others say buy lots; and others say don't bother with gold at all. The choice is yours.
There are a number of ways you can invest in gold, including bullion, certificates and coins. Most people look to an investment advisor or company to guide them in making a choice. But before you entrust someone to invest your money in gold or anything else, check to be sure they're licensed with your state securities administrator. If an individual broker or an investment company won't give you a thoroughly prepared prospectus--a formal document detailing the plans, risks and cost of their services--or promises you a quick or high return on your investment, be suspicious. See ConsumerAction.gov for more ways to tell if an investment broker is on the up and up.
If you're considering buying gold coins, the U.S. Mint's American Eagle Gold Bullion Coins are the only gold coins that are guaranteed by the U.S. government in terms of purity, weight and content. They're available from precious metal or collectible coin dealers, certain banks and brokerage houses. If you're considering investing in coins produced anyplace by the U.S. Mint, read up on buying gold coins and investigate the seller and the coins carefully to help ensure that you're getting coins that match the value the seller is promising.
Don't have a stomach for investing in the gold market? You can still look for it the way they did 160 years ago at Sutter's Mill. Go west, young man or woman and start panning.
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Thanks for all the info on gold.
Posted by bettybaldwin on January 25, 2008 at 03:59 PM EST #
Posted by srob1209 on January 28, 2008 at 12:57 AM EST #
Posted by Citizen Jmaximus on January 28, 2008 at 07:33 AM EST #
Some times it would be smart to find the really limited supply of gold coins as a hedge against falling gold prices. I think the WTC coins made of gold silver and platinum could be this kind of investment.
wtc911coins
Posted by wtc911coins on June 19, 2008 at 08:38 AM EDT #