Gold is a precious metal which palling precious in this world, gold prices always go up and up, will never fall, for the gold is good for us infestation, both in the long term or short term, Buying gold bullion is now cheaper and easier than ever before. And it's still, by a long way the safest way to own gold, Gold Bullion and gold coins are valuable precious metals - namely gold or silver. It comes in two main forms Gold bullion bars, coins and gold bullion. What makes it gold bullion is simply that its value derives entirely from its precious metal content, Unlike jewelry, or Numismatic coins, gold bullion has no artistic component in its value. Some people do not understand why that artistic component without a Relatively useless material like gold should have such a high value. To understand that you need to understand gold's monetary role.
I have with buying gold coins are the transaction costs. For example, based on some quick research, it looks like one faces a 5% premium over the price of gold plus shipping costs in order to purchase gold coin. I imagine that you'd lose most of that premium when selling, resulting in a significant bid/ask spread. gold coins is that you have to store them somewhere. You'll need to buy a safe, and that's still not a 100% guarantee that they won't be stolen or destroyed in a hurricane, earthquake, fire, or other disaster.
The most sensible way to buy gold is via the new gold ETF (NYSE: GLD). You can buy and sell instantaneously with hardly any transaction costs.
Perhaps some gold investors fear the ETF because they think that the financial system will collapse and their shares in the ETF will become worthless. But I don't understand why it's assumed that gold coins would be worth anything under these circumstances. If one is planning for the end of the financial system, perhaps a better investment would be a nuclear fallout shelter, guns and ammo, and a year of canned food and bottled water.
Even the gold ETF is a bad investment in my opinion. It's just not leveraged enough. If the price of gold goes up by 50% from here, that's really not such a great return on investment. I like to buy things that will at least double. That's why I own shares of DRD Gold (NasdaqSC: DROOY), a gold mining company. DRD Gold is highly leveraged to the price of gold and will increase in value many times if gold ever takes off.
