If you watch any of the cable news channels, you have undoubtedly seen a plethora of commercials by companies hawking gold. Should you add gold to your own investment portfolio? For the average investor, the answer is probably yes. Here are a few things to consider:
1 - Gold has been a rock-solid form of currency for thousands of years. Currencies come and go, sometimes even becoming completely worthless overnight (i.e. Confederate money after the Civil War). Gold on the other hand has never been worth zero at any time in recorded history.
2 - Gold is typically worth the most when other assets are worth the least. That's why the current price of gold is approaching the stratosphere even as the rest of the American economy is in the tank.
3 - Gold is a hedge against inflation. With the U.S. Federal Government borrowing money at a record-setting clip it's virtually guaranteed that inflation is going to go through the roof at some point, and probably in the not so distant future. Gold typically increases in value as inflation heats up.
4 - Gold is a tangible asset that can be used as currency in virtually any economy in the world.
There you have it, four reasons for adding gold to an investment portfolio. If you decide that you want to add it to yours, below you will find a list of some of the most well-known companies that sell (and buy) it. Just be sure to do your homework by checking out the facts about buying and selling gold before you invest. All of the companies listed below have excellent tutorials on their websites.
- Monex
- Goldline
- Blanchard
- USA Gold
- Rosland Capital