Should You Buy Gold?
Should You Invest in Gold?
You may be asking yourself if you should consider gold as an investment. You are probably hearing mixed advice on this, with many on TV doubting gold as an investment. You may have heard someone say that gold pays no dividends and generates zero earnings so you are better off to just buy a stock.
In other words they say gold "makes no sense," because it is simply a metal. It's a rock so to speak.
Well, that is exactly why you should have gold in your investment portfolio. As a solid rock it is not going to disappear. Nothing bad is going to happen to gold. Therefore it can be used as a solid foundation to build a real investment portfolio around. In fact it should be at the core of your investments. I consider it my own personal investment fortress and you should too.
And as for those that say buy stocks and don't buy gold, most of those people are so in love with just stocks that they simply put down everything else to talk their own position up. The truth is many people do nothing, but chase stocks and if you do not pay attention to the price you pay for the earnings - or lack thereof - the company that stock represents is generating than you could be making huge mistakes.
And most people do not think of this and get caught up buying stocks at important market tops.
Let's face it since 2000 we have gone through a wild boom and bust cycle in the financial markets and a growing treasury bond debt bubble in the United States that when it busts will create inflation big time and cause the dollar to go down in value and gold to rise in value.
So at this moment in time you should consider gold as a critical hedge in your portfolio to protect you from this potential catastrophe - and even if the worst case scenario doesn't happen gold will likely continue to rise in value anyway. Investing in gold now is simply the smart thing to do.
Gold began a giant secular bull market in 2002. Secular bull markets can last for twenty years and within them you get occasional short-term cyclical bear markets that last from one to three years.
Well in 2011 we saw just such a bear market start and it came to an end in the summer of 2013. The gold chart suggests to me that going forward we are going to see massive gains in the price of gold in the secular bull market.
So there are two simple ways to get in the gold game. First you can buy into a gold ETF that trades on one of the US stock market exchanges. These are exchange traded funds that hold gold and go up and down in value with the price of gold. You can buy these in your regular stock brokerage account with the touch of a button.
There are some liquidity risks to these exchange traded funds. If too many buyers came in and the funds don't have enough gold the price could do something silly and conversely if all of a sudden one of the fund doesn't have enough gold on hand to meet sellers they can run into trouble. But they are simple to buy.
The next thing you can do, which is a bit more risky, is to buy some gold stocks in your account. These are companies that mine for gold and have earnings. Some such as Newmont mining and Barrick Gold are among the largest corporations in the world.
I buy gold stocks and recommend them on this website. There are so many of them out there that you really need someone to help you find the best ones to invest in. And you need someone who can do a good job of figuring out whether the price you are paying for a gold mining stock makes sense in the long run.
Now finally you can buy physical gold so that you can have it on hand or have it stored safely somewhere for you. In the end this is the absolute safest way to own gold.
I actually recommend that most people buy some stocks and own some physical gold too.
I suggest you closely follow my writings on this website to learn more about the gold market. I specialize in gold stock ideas and run a private high dollar private mastermind group for accredited level investors.
However, you can take a free membership to this site by scrolling down this page. Once you join I'll send you via email my PDF report on how I pick out stocks. I call it the Two Fold Formula and it can serve as your powerful guide in this market.
Just go and start now.