Is Investing in Gold a Safe Bet?

Is Investing in Gold a Safe Bet?

Purchase precious metals

Are you wondering what to invest in? The answer is: it depends. How much do you have to spend? Are you risk-adverse; when do you need the money back; is there an area you are interested in?

Experts like to recommend a diversified investment portfolio, because few would argue for putting all of one’s eggs in one basket. Slow, consistent building is preferred over lump-sum contributions. These are generic pieces of advice that while helpful, do little to really be of assistance when debating what to add to your portfolio.

For some (mainly those distrustful of the fluctuations of the stock market) the allure of having a physical representation of their investment is tempting. Gold bullion is perhaps the most popular of the precious metals used as an investment.

Wondering why someone would want to invest in gold? The U.S. gold mines alone extracted 211 tons in 2014. Roughly 80% of the total gold bullion in circulation in the U.S. is in the form of the American Eagle coin, which weigh about one ounce each. Coins are usually preferred over bars, because of the ease with which they can be stored. While small amounts of gold can be reasonably stored safely at home, larger amounts should be stored at a special facility.

If you dislike the idea of holding on to a bunch of shiny coins, the heaviest bar available for purchase at a typical gold-selling shop is a 10 ounce bar. Bars have a pure gold percentage of 99% to 99.5%, making them about 24 karats. The next largest standard size is a one kilogram bar, which is about 32 ounces.

No investment is 100% risk free. Gold has a long history of reliability, which makes it an attractive option to many. If you think you would like to invest in gold, now may be the right time to start.

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