Gold is the ultimate store of wealth. In today’s volatile investing climate gold is a safe harbor.
Figure out if you want to invest in gold bullion, virtual gold, or gold stocks. Maybe all three make sense.
It’s quite easy to buy bullion. Any coin shop should have some gold on hand. Know the spot price on gold before you walk into the shop. Expect to pay 1-3% over spot price. If they want more, go somewhere else.
Most retail level bullion is sold in single troy ounce coins or ingots. The most popular of gold coins, for bullion investing, is the Krugerand from South Africa which typically sells at the smallest amount over the spot price.
One can also buy “scrap gold” which is gold from jewelry and other sources. You have to seek out a scrap gold dealer to do this kind of business. I don’t like scrap.
Determine if you want to buy your physical gold online. There are many reputable dealers out there. Of course research anybody you are doing business with.
If you want to invest in virtual gold, GLD (the gold ETF), and egold good choices.
Virtual gold is actually gold but represented in digital form. If you want to play fluctuations in the gold spot price this is where you want to focus your attention.
Gold stocks are another good option for your portfolio. But gold stocks are stocks none-the-less and subject to the same issues as other stocks.
Every portfolio should have some gold in it. I like about 10%. Remember, as a general rule, when stocks go down, gold goes up in value, and vice versa. Think of gold as a hedge against the rest of your portfolio.