August 16, 2009 – Gold Coin Investing

The main thing about gold coin investing is this: Invest at your own pace.

It’s very hard to give too specific of advice when it comes to gold coin investing, because we aren’t psychic. We haven’t seen your tax reports, so we don’t know how much money you made last year. We don’t know how much of that money you have free to invest with, or what your specific goals are for investing in gold, but the beauty of the metal is that you don’t really need to worry about all of that too much.

The fact is that gold is always a solid, safe, secure way of protecting yourself in case of recession, and as such, you can simply invest at your leisure, buying coins when you want to, selling them when you need to, and investing in whatever way you’re comfortable investing.

That said, we do have some specific advice depending on your goals…

Gold coin investing for profit – The main thing with gold coin investing for profit is, as with any investment; buy low, sell high. Keep an eye on the spot price. When the metal has a slow week, feel free to buy, and then go ahead and sell some of your coins when the metal is back up. Ideally, you want to buy during times when the dollar is going strong and sell when the dollar is weak, but, unfortunately, the dollar has been weak across the board for several years. That said, if you have the money to invest in large amounts of gold at a time, you can still turn a profit on the small jumps and falls in the metal.

Gold coin investing for safety- Simply put, buy some coins now, and hold onto them for the time being. Sell some off if you see a substantial jump in the metal, but mainly, your coins are there to offer you a backup plan should other financial matters not go as expected.

Long term gold coin investing – If you’re hoping to retire on your gold coin collection, our advice is to simply add a little more to your collection whenever you have a little more money to invest, and then… just leave it there. Don’t worry about it, just let it grow over time.

The main thing you need to know about gold coin investing is that it offers investors peace of mind. While you may just get lucky with an odd stock or real estate (it is possible, if not plausible, even in this economy), the fact is that those options do not offer you any sort of security. If you lose money on stocks, your money is simply lost. However, gold never crashes and becomes worthless in any circumstance, because gold is a real, tangible commodity with literal, real value.

As such, when the dollar price of gold drops, it’s not really the value of gold that’s going down, but the value of the dollar that’s going up. Remember that the dollar was only ever a substitute for gold in the first place. So during a recession, it’s not so much that gold coins are worth more, but that dollars are worth less, and vice versa in times of economic comfort.

Again, the only advice we can give that applies across the board to every gold investor is to simply invest at your own pace in whatever amounts you feel comfortable investing in. If that means putting thousands at a time into your gold coin investments, or only buying a few tenth ounce coins when you have the money to spare, so be it. However you like. As long as you cover yourself, it really is difficult to go wrong with gold as a backbone for your financial plans.

Linda Hess

Aug 24, 2009

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