Gold as an Investment

in Gold

If you were to speak with an investment advisor they would probably advise you to stay away from highly correlated portfolios. History has proven the dangers behind having portfolios that consist only of one particular investment or investments that are affected by the same factors. When the market is faced with turmoil those people who have a portfolio that is not diversified typically experience adverse effects. By investing in gold bullion you can provide your portfolio with the stability it needs when the economy is faced with difficult times. This can help you avoid such huge losses if faced with an economic downturn. A portfolio that consists of gold bullion coins and bars is more manageable then working with a portfolio that only consists of stocks.

Unlike currency, which can feel the affects of inflation, gold does not. History has shown us that when the country is faced with a crisis the value of gold tends to rise. Sadly the dollar does the opposite and is constantly depreciating in value and losing its purchasing power. Take a look at a quarter for example; a quarter today cannot buy what it could buy years ago. By investing in precious metals you are protecting yourself from the instability and fluctuations of the stock market.

If you have decided to invest in gold it is important for you to know that not all gold is the same. Collectible gold can increase in value beyond market averages. Collectible gold receives its value beyond its gold content. The better the condition of a collectible gold coin and the more rare it is the higher it is in value. Gold bullion on the other hand receives its value from its gold content and therefore is subject to the market price, which is determined by whether or not the greater portion of the gold is being bought or sold.

Certified gold coins receive their value based on their rarity, grade, and historical value. A coins rarity is based on how many of the coins were minted and how many are still around and available today. So the less coins that were minted and are available the more valuable the coin is. A coin receives its grade based on its condition, which is usually determined by a professional grading company such as PCGS or NGC and is given a grade off of the Sheldon scale.

With a diversified portfolio you can experience value during both the good and bad times. Invest in gold today!

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Mikeflower has 3 articles online

For more information about Investing in Platinum and Palladium and online gold and silver visit my website

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Gold as an Investment

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Gold as an Investment

This article was published on 2013/07/10