Gold is a universal currency that has been used for centuries; and is still being utilized widely today. Like anything that is considered a type of currency, gold is susceptible to dips in value and even crashes. But it has more stability than almost every other type of currency (including the other precious metals).
There are several different ways to invest in gold. Those interested in this type of investment should avoid the temptation to commit completely to one specific area of gold investment. Instead, as with all types of investments, the best strategy is one that embraces diversification.
But let’s take a step back and consider the importance of trend-following. For example, if the price of gold were to begin to plummet, that would be a good time to buy. Alternatively, if prices begin to shoot through-the-roof and projections expect the price to grow even higher, that’s when a wise investor might look to sell. If you bought low and gold is still crashing, wait until it rebounds before you look to sell it.
Every central bank on earth has physical gold on hand. So, if you are considering building a gold portfolio, this is one of the areas in which you want to invest. The underlying reason for this is that gold can be used as a backing to any currency. Think of it as financial insurance. Should you run into a ditch financially, you can always count on physical gold to bail you out. And, in the unlikely event that a currency completely crashes, there is almost nothing more valuable to have secured.
Gold coins should also be considered worthwhile investments. In some countries, including those in the European Union, bullion coins are completely tax-free. Gold coins can be traded for any of the world’s other currencies; and can also be used as legal tender in many parts of the world. The most popular purchase when it comes to bullion is one-ounce coins.
Gold Certificates are a must if you plan to buy gold; and there is only one certificate that is completely backed by federal governments: The Perth Mint Certificate. Perth Mint Certificates have an AAA rating by both Moody’s and Standard and Poor’s. It is considered by many experts to be the most safe and secure manner in which one can invest in gold.
All told, there are many different ways in which to invest in gold. Not only can gold be used as direct currency, it is also one of the safest and bubble-resistant types of currencies in the world. If ever there was a surefire investment, gold is it. Good luck with your investments and financial future; and as always, consult with a financial expert before you invest.