Gold investing has been a staple for investors since the early 1900’s. Investors have always looked to gold to be the backbone of their investments. This was considered a very wise move by most economists, because even though the stock market can rise and fall drastically, gold retains at least some value at all times.
When someone is investing in gold, the question they need to ask is not what to invest in, but how do I want my investments to work. This means that if the investor is looking to capitalize on the increases reported in the gold market, then they may need to look at purchasing gold as a commodity. If they are looking at long-term investments, then gold coins may be a better choice for the wise investor.
The second question most investors ask is when should they purchase the gold coins. This question is easily answered by stating that they should be purchased when you can without putting yourself into any type of financial distress. According to an article published on November 5th in the Wall Street Journal, gold coins should be purchased when there is opportunity and desire. Gold coins should only be considered for investment when the buyer is financially stable and when they wish to diversify their portfolio.
The other factor involved in when to purchase gold coins is that there are periods of shortages when the national mints cannot keep up with the demand of the collectors. This is because during periods of economic crisis, investors will try to protect their assets by purchasing collectable items. This strategy helps the investor to still be solvent after the crisis has passed.
The final question is how much of my assets should be invested into the gold market. The answer to this question is not as straightforward as the first two questions. According to the Wall Street Journal article, persons who are looking at moving some of their portfolio into gold coins should consider how much of their investments they can have tied up for the next 10 to 15 years. This is the average time to hold gold coins to get the highest yield to your investment per time spent in the market. If you can hold the coins longer, then the price will naturally increase, due to coins taken out of circulation. The overall answer seems to be that you need to invest what you can for as long as you can, then work with your portfolio to keep it diversified.