The 7 Golden Rules of Gold Investing
1. Buy Gold in Troubled Times � An investment in gold should be based on macroeconomic considerations and investment climate. Today, people are buying gold to protect their portfolio from a currency crisis, recession, and the fear of a crashing stock market should there be another terrorist attack of major proportions. Diversifying into gold prior to these events will provide the most protection from a crisis.
2. Dedicate A Portion of Your Portfolio to Gold � In our opinion, a reasonable allocation of gold in a conservative, diversified portfolio is 1 to 3% during a bear market in gold and 5% to 10% during a bull market in gold. This allocation will provide balance, diversity, insurance for your stock portfolio, and excellent long-term profit opportunity.
3. Buy the Real, Tangible Gold � Bullion gold or gold coins are a more conservative way to invest in gold than gold stocks. In addition, there is greater liquidity in physical gold for large pools of capital. Do not make the mistake of letting someone hold your gold for you or buying a so-called "gold certificate" or "structured note." Insist on taking physical possession immediately of your gold, gold coins, or gold bars. Only by taking physical delivery can you guarantee that you truly own the gold.
4. Keep Abreast of Gold News � Gold is sometimes a controversial, anti-establishment investment. Therefore, you generally can�t rely on conventional financial media, the Wall Street Journal or cable channels for your news. Their sole purpose is to promote stocks to investors. In the gold area, commentary is even more misleading and ill informed than usual. Gather all the information on gold you can before you invest.
5. Don�t Settle for Too Little Gold � Unlike other commodities, the demand for gold rises dramatically as the price rises. Should unexpected events that may seem unimaginable today actually occur, the target price for gold could be several times today�s price. Historically, the faster and higher gold rises, the more investors chase after gold. Buying gold while prices are still less than half the all-time highs allows you to buy low and sell high into a rising market. That's always been the best way to maximize your profits.
6. Gold Represents Financial Insurance � Historically, gold has provided the best protection against financial catastrophe and upheavals. In the case of the most severe circumstances like high inflation or currency deflation, gold offers you both safety and security. With past currency failures in Argentina and Uruguay, investors who owned gold still had currency despite the fact that banks and ATM's were closed and bank customers could not take their own money out of their own accounts. Naturally, the magnitude of the upside potential for gold is a function of the amount of paper assets that would be sold off and converted to gold, in the event a financial crisis.
7. Be Careful Buying Gold � Even though gold itself is a most conservative investment, "gold fever" attracts a crowd of investors, speculators, and want-to-be gold dealers. A firm like Austin Rare Coins & Gold Bullion offers you a variety of ways to acquire gold, gold bullion or gold coins while giving you the assurance of dealing with a reputable firm founded in 1989. We are proud to be a member of BBBonline, the Industry Council for Tangible Assets, and a leading dealer with the Professional Coin Grading Service and the Numismatic Guarantee Corporation. Reputable and established gold traders offer you the advantages of better liquidity when you�re ready to sell your gold.
You can buy gold directly online from the Gold Information Network by clicking the link below. For questions or orders over $1,500, please call us at 1-800-928-6468 to take advantage of price and quantity discounts.
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