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Entry bubble Investing in Gold

By: Nancy | January 24, 2008 | Category: Money

stack of gold coinsOn 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.

| Comments [4] | envelope Email This Entry | Tags: gold   investments   nancy   stock  

Comments:

We welcome your comments and expect that our conversation will follow the general rules of respectful civil discourse. This is a moderated blog, and we will only post comments from bloggers over 13 years of age that relate to topics on Gov Gab: Your U.S. Government Blog. We will review comments for posting within one business day. You are fully responsible for everything that you submit in your comments, and all posted comments are in the public domain. We do not discriminate against any views, but we reserve the right not to post comments.


I'm really interested in investing in gold. I never really thought of gold as a good investment until I heard Johnathan Rose (sp?) from Capital Gold Group talking on the G. Gordon Libby radio show. I decided to do some research and came across your blog. I think that it makes sense to invest in gold. After all, people all over the world want gold. Even if the dollar is worthless, you can always trade your gold ring for something.

Thanks for all the info on gold.

Posted by bettybaldwin on January 25, 2008 at 03:59 PM EST #

I just came across an article by Addison Wiggins about investing in gold that is 100 percent backed by the government. It is in the outstanding Investments news letter. Has anyone else heard of this?

Posted by srob1209 on January 28, 2008 at 12:57 AM EST #

Gold is more of a store of money than an investment. It was good money 3000 years ago, and it will be good money 3,000 years from now [probably]. The dollar will be long gone by then, maybe ten years from now if things keep heading in the wrong direction.

Posted by Citizen Jmaximus on January 28, 2008 at 07:33 AM EST #

Gold coins or gold bars will be a save investment in the long term but could in the short term go down to the $450 level. As the dollar comes back gold will most likely fall in value. If oil price start to fall again gold could fall with it.

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 #

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