by admin on August 1, 2014

Investing in gold is smart, and when you really do it right, you make money both short and long-term. Lets discuss the various benefits vs disadvantages of all the ways which you can invest in gold.

Owning Shares in a Gold Mining Company or Gold ETF

Essentially you hold paper notes that represent the price of gold in an exchange traded fund. So you get a piece of the action with gold but without the hassle of ownership and storage, at least in theory. The returns are pretty consistent but nothing incredibly great, and theres no safety against a stock market crash.

After all, its just paper that represents a theoretical stake in gold. See how long that lasts in the event of a financial market crash.

Another way is to buy stock in mining companies. This can be potentially profitable, but also very risky. Theres too many factors outside of everyones control, and all the variables tend to cause price volatility. I see these types of stocks as get in, get out stocks in a sense that you buy them over the course of 3 to 6 months and then get out with your profit, but thats just my strategy with these types of stocks.

Honestly, Id stay away from both these kinds of stocks. Theyre not real ownership of gold, theyre highly speculative and not that valuable in my opinion.

The US Gold Eagle

Gold You Can Hold

Another way to invest in gold is to randomly buy gold coins. This is another shaky way of going about gold purchasing. You may never know the quality if youre not buying from a registered dealer, and it can get downright frustrating.

If you want gold you can hold, make sure to buy only the gold that meets the standards for a Gold IRA. whether or not you intend to get a Gold IRA or not. Gold IRAs demand only the highest purity gold and theres a short list of coins that meet the requirements. Having physical gold is both a hedge against inflation, financial collapse and societal hardships.

Maybe Im an optimist but I dont see another financial crash. I see a long slow road to poverty for the United States, but I see tremendous opportunity for the investor that gets it and makes good decisions now. These decisions shouldnt be made out of the fear of headlines or Federal Reserve statements, they should be made wisely with a 20 year shelf life in mind.

You can roll over your pre existing IRAs once each, and whatever Gold IRA company you go with can take care of all the details for an easy, seamless and worry-free process. I think the best part is you get to take a significant position in gold that protects your overall savings and wealth while staying off the radar and avoiding all the market drama and instability. I dont think gold is going down long-term if youre a Westerner, Ill just say that.