Have you looked at Gold as an investment?

Gold001Have you looked at Gold as an investment? I’ve always laughed at those gold coin commercials.  They seem about as legit as Billy Mays hawking the latest $19.95 invention.  It seems that I’ve been wrong about this.  Gold, like most investments, goes in and out of style as quickly as Brittany Spears but although it tends to be a bit of a fad, investors agree that gold should be a part of your investment portfolio no matter how much or little press it gets.


Why is gold considered a save haven?  The small little quarry on the side of the roaring rapids.  In very general terms, gold is a real item.  Stocks are pieces of paper that represent a company.  Cash is a piece of paper that is supposedly based on gold.  A bond is a piece of paper.  So many investment products are pieces of paper and pieces of paper are valued by sentiment rather than supply and demand.  (Again, this is an extremely basic explanation.  Supply and demand does come in to play with these products but in a different way)  All in all gold as an investment is a great idea!


Gold is a thing.  You can hold gold, and it doesn’t represent anything except itself.  Where the dollar is backed by gold for it’s value, gold isn’t affected by inflation or other market trends as severely as other products.  Even with our economy on life support, Gold was at $1000 per ounce in February of 2008.  As of February of 2009, Gold is at $1000 per ounce and has remained over $900 per ounce.  There was a dip in price November of 2008 but Gold has recovered.  It’s hard to argue that gold as an investment makes sense.


How can you invest in Gold?


The best is way is to invest in the ETF (GLD)  The ETF Fund actually owns gold so you are still owning the metal.  This is probably the best and easiest way largely because you don’t have to find a way to store gold.  Any type of gold as an investment will work over the long term but the ETF is the easiest way.


Next, Go to the U.S. Mint’s website (usmint.gov) and buy a coin or two.  There are some 24K gold coins worth looking at.  I have been looking at one for $1,339.00 as a long term investment.


There are other ways but these two ways are the easiest.


Take a look at gold and consider making it part of your portfolio.

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