How can I Buy Gold?

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With the daily news reports of gold and the market, it is a little-understood fact that the actual price of gold is more static than just about any other investment vehicle or commodity. All of these market trends really just reflect the value of currency when compared to gold, in any country, at any time. Because of this singular fact, that the worth of gold today is similar to what it has always been, its value is always consistent and reliable, and buying gold is rarely a bad idea. In fact, for the savvy investor, gold is purchased at regular intervals, in order to hedge against economic declines of all natures, from war, inflation, failure of other investment vehicles, etc. Gold is highly valued in all countries, and this makes it far less dependent on the fiscal health of other commodities.

Gold is almost impervious to recession and inflation, which means that if you were to buy gold steadily; you would be well-protected against future economic crises, where the strength of the dollar is weakening. Especially in today's United States economy, where the national debt has led to more and more dollars being printed, which actually weakens the dollar, because there is less and less gold to back it up. Government deficits happen periodically, and you should expect that they will always be the reality for a society from time to time as wars, currency devaluation and other factors require an artificial infusion of cash. The one commodity that almost always stands strong against these problems is gold, and it can serve as a trusty source of capital during a national recession or even depression.

In fact, another good reason to purchase gold comes to you from history; the Great Depression happened when everyone ran to the banks all at once to withdraw their cash during an economic downturn. The banks, of course, can't possibly - in any century - cover this kind of expense, and the dollar collapsed. The president at the time ordered the hoarding of gold as a federal offense, which means that you could be arrested and jailed for trying to gather gold, because it was the one commodity that was still worth something and could buy anything - food, shelter, clothing, etc. Despite the century difference from then to now, the exact same thing would happen if the dollar became too badly devalued to be of practical use; gold would still be worth as much as it always has been, minus inflation.

Ideally, whenever you feel that war may be on the horizon, see the prices of common goods skyrocket or rise significantly, or any other sign that currency is devaluing, it might be a good time to get some gold for protection. However, in a more practical sense, these things tend to jump up quickly, before you are prepared for them or can even see them coming. As such, the best advice that a prospector can give is that it is never a bad time to purchase gold.

Years back stocks were skyrocketing. Now, stocks aren't doing so hot, but gold is. Yes, the price goes up and down now and then, but it's trending up which means getting in now could prove to be very lucrative in the future. If you're new, follow these guidelines to start investing in gold. It's fairly easy to get started in and doesn't require a lot of study and research. However, I do recommend reading a book or two on gold or precious metal investing.

Asset Allocation

Diversifying your portfolio is an important way to maximize your return and protect your investment. Gold is a somewhat safe investment, but it's not good to put your money all in the same place. Start investing in gold but allocate your assets into other categories, too. Asset allocation is when you set up a plan for how much money you want in several different categories. For example, your asset allocation plan could look like this:

• 10% cash
• 40% stocks
• 20% bonds
• 30% gold

Of course, this is just an example. The allocation plan you use should be done through researching your own situation and determining your own risk tolerance.

Funds or Physical?

There are a few ways to invest in gold. You can buy physical gold and either keep it yourself or have a company hold it for you. Or, you can purchase gold exchange-traded funds or mutual funds. You won't have to worry about holding on to your gold and it's easy to sell, but you won't have it if a catastrophe happened and you needed the gold on you. Some people buy gold only for this reason. They want to be sure they can buy things if the dollar crashes and precious metals are the only way to get what they need. Will this ever happen? There is no way of knowing. Being prepared is good, but don't get paranoid.

Protect your Gold

If you purchase funds, protecting your gold is fairly easy. Maintain a safe brokerage account as you would to invest in any other investment. However, if you choose to hold the gold in your possession, protect it. Keep it in a safe deposit box at the bank or buy a home safe and hide it. Preferably get a safe that you can somehow attach to your home. The safer the better.

Regular Investments

Invest in gold on a regular basis just as you would any other investment. The more you invest now, the more valuable your gold investment will be in the future. Set up a regular monthly or quarter investment plan investing as much of your money as you can into gold. Maintain portfolio variety, but continue to build your net worth as a whole through saving and gold.