Putting together an appropriate investment portfolio is something we should all strive to do, but it’s not all that easy.
For many people, the challenge is pronounced because you have to be able to balance your own aversion to risk along with your desire to watch the money grow. With that in mind, many investors seek out a portfolio that includes stocks, bonds, mutual funds, and a host of other traditional investment products.
The smartest investors are going one step further, though. They are investing in gold and one of the most popular means of making that happen is by purchasing gold coins. So is this a good idea? It certainly is and here are three reasons why everyone should be on the gold coin bandwagon.
1. Long term economic viability
If you have been paying attention at all, then you have probably heard about the value of gold and how it is at a high point right now. What you might not realize is that gold is something of a steadying force for people who want to have a balanced portfolio. Stocks and mutual funds can falter on occasion, especially with the stock market in its current condition. With gold coins, you are adding something that will help you feel much better about the long term health of your financial situation. You are adding a measure of economic stability that no one can take away from you and no CEO can destroy.
Those who buy gold coins have an investment product that is sure to have at least some long term growth. Though it will grow at a slower rate than many of the risky propositions out there, the growth will be real. You will be able to sleep easy at night, because at least one part of your investment package is safe from the troubles of the markets.
Many things can impact the price of a given stock. Consumer speculation can play a role, corporate irresponsibility can play a role, and lots of other factors that you haven’t even considered can force the price of a stock down in this economy. If you are are going to have a viable portfolio, you need some things that are not going to fluctuate based upon these factors. Gold coins are that choice.
The reason why gold coins are not going to fluctuate in that way is quite simple. The market for gold is a standard around the world. Every single country values these coins and all banks use them as backup for the currency that is coming in and out.
Though the market can crash and leave some stocks hurting in a big way, the only way for the price of gold to go tumbling is for the entire global economy to fall apart. That should provide you with some security and some peace of mind, which is valuable in itself.
2. They are a tangible investment product
When you invest in stocks and bonds, you are throwing your money out there on the market and you don’t get anything tangible in return. Though you know exactly where your money is going, what do you really get that gives you some feeling of ownership? The answer is that you don’t really get much. The stockholder materials might come in the mail once per year, but is this really what you are looking for?
There is no doubt that these investment products have to be a part of your equation, but you should still leave room for some tangible investments, too.
Gold coins can be held in your hand. They can be put in your safe or stored in your closet. If you want to, you can carry them around in your pocket. What you do with the coins is completely your decision and that is what makes them a valuable investment product. If the market were to completely crash, who knows what is going to happen to the money that you have sent off into space? If you had bought some gold coins, you would have some value that you knew was real, though.
Finding and purchasing gold coins is not difficult, which adds to the why people should buy at least a few of them. You can purchase them online or you can buy the coins from a host of different tangible sellers. This availability factor and the fact that you can purchase coins without ever having to go through a broker is a definite plus in their favor. It might cost $10 to buy a stock online, but it will cost you only the price of the coins to make that sort of purchase. This helps to allow you to put more money into the investment itself.
3. The value of coins isn’t necessarily tied to the US dollar
Too many of today’s popular investment products are tied to the struggling US dollar. When you own various stocks or you own government bonds, you have to wonder about just how powerful the dollar is going to be. This adds another factor that must be considered in your investment. The idea, of course, is to make things easier instead of making them harder. You shouldn’t have to speculate on whether your investments are going to have financial viability in the coming years as the dollar fluctuates in value right now.
With gold, the value of your investment is tied much more to things like pure demand for the metal and the global economy. Though the value of the dollar does factor into that to some extent, it isn’t nearly as important as it is when talking about other investment products. This simplifies things and most people are looking for something a bit more simple to add to their portfolio. Given the basics behind investing in gold coins, they make solid financial sense in this way. They are the ultimate diversification tool and they are a bit of an insurance policy at the same time.
All of these reasons should combine to show you that investing in gold coins is a good idea for just about everyone. If you are currently throwing your money into stocks, bonds, and the like, you are taking one step towards solidifying your financial future.
The next step is to actually make your investment portfolio one that is balanced, safe, and full of growth potential.
As many investors will tell you, gold is an excellent product for this purpose and it does not get much easier than investing directly in gold coins. They are tangible products that top most of the other available options.