The Pros and Cons of Investing in the various Gold Financial Instruments Part 1

canadian coins

The Pros and Cons of Investing in the various Gold Financial Instruments Part 1

If you are looking into diversifying your portfolio and protect yourself from the inevitable inflation, then 10%-15% of your portfolio should be in gold. It is possible to invest in the physical gold itself, gold mining stocks or god ETFs.

-Investing in Physical Gold Bullion

Other than buying the physical gold itself, you can invest in bullion through “pooled” accounts, or you could get a company like Brink’s to store the gold for you, at a fixed rate.

-Buying physical gold and storing it yourself.

Holding onto physical gold is the most tangible option as opposed to financial instruments like ETFs. The downside to that is potential theft and liquidity issues. Storage could also be an issue. You probably would want to get a safe. Liquidity could be an issue as obviously, no one accepts gold as payment, although that might change once the US dollar crashes.

-Investing in pooled accounts.

Dealers such as Kitco and Perth Mint are able to offer fungible gold to you. An audited amount of gold is stored in the dealer’s location and should you decide to sell it, they would pay it back to you at the prevailing spot price, minus their spread fee. Of course, if you opt to take delivery, then they would delivery.

-Buy physical gold directly, but don’t take storage.

A dealer like GoldMoney is able to store your gold for you. Their vaults are audited regularly and all your gold is accounted for. They also provide some liquidity as they can instantly pay you in 1 of 4 major currencies. Note that the storage of your gold has a monthly fee.

Part 2 coming up.

If you want to invest in physical gold bullion, why not give Canadian Gold Coins a look?

Catalogue of the magnificent collection of American colonial coins, historical and national medals, United States coins, U.S. fractional currency, Canadian … late Hon. George M. Parsons, Columbus, Ohio

This is a reproduction of a book published before 1923. This book may have occasional imperfections such as missing or blurred pages, poor pictures, errant marks, etc. that were either part of the original artifact, or were introduced by the scanning process. We believe this work is culturally important, and despite the imperfections, have elected to bring it back into print as part of our continuing commitment to the preservation of printed works worldwide. We appreciate your understanding of t

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