"The rich old speculator Bernard M. Baruch forehandedly bought gold and gold shares after the 1929 Crash. Years later a suspicious Treasury Secretary asked him why. Because, Baruch replied, he was 'commencing to have doubts about the currency.' Many are beginning to doubt the the strength of the dollar as they well might. Following Baruch's example, they should lay in some gold as a hedge." -- James Grant, Grant's Interest Rate ObserverWe probably get that question more than any other -- pretty much on a daily basis. The answer, however, is not as straightforward as you might think. What you buy depends upon your goals. We usually answer the "What should I buy?" question with a question of our own: "Why are you interested in buying gold?"
If your goal is simply to capitalize on price movement, then bullion coins will serve your purposes. If you are interested in long-term asset preservation and you have additional concerns about capital and/or monetary controls -- a more complicated scenario -- then you might want to include the lower premium variety of pre-1933 European and American gold coins in the mix. These have been treated by the U.S. government since the 1930s as historical items, and, as a result, afford the privacy-minded investor a greater degree of safety than gold bullion.
But what I just gave you is a rough sketch. To develop a more refined strategy, we recommend spending time with your broker here at USAGOLD-Centennial Precious Metals. We can help you design a portfolio capable of weathering these uncertains times and in keeping with your long-term goals.
The short answer is 'When you need it.' You cannot approach gold the way you approach stock or real estate investments. Timing is not the real issue. The first question you need to ask yourself is whether or not you believe you need to own gold. Once you answer that question in the affirmative, there is no point in delaying your actual purchase. The real goal is to diversify so that your overall wealth is not compromised by economic dangers and uncertainties.
No comments:
Post a Comment