The Ultimate Guide to Buying Gold –

How you choose to own gold is just as important as your initial decision to buy. Get the means of ownership wrong and you could end up in just as much financial difficulty as those people who never even attempted to buy in the first place.

Diversification is key. Putting all of your eggs in one basket in terms of gold ownership isn’t a good idea. But what should you diversify between? If safety is your paramount concern, then coins and bars, allocated storage schemes and closed end funds are the best options.

The threat of government confiscation and/or moves to curtail gold dealing also needs to be considered by all gold owners, but especially by those who have chosen to store all their gold in just one country. There are historical precedents for such confiscations and restrictions — most famously President Franklin D. Roosevelt’s decision to confiscate US citizens’ gold in 1933. Americans weren’t allowed to own gold again until 1975. It makes sense to diversify your assets — both in terms of what you own and where you own it — in order to mitigate such risk.

Gold offers a simple and time-proven method of protecting capital during periods of economic and geopolitical uncertainty. In the words of gold analyst Jim Sinclair, the yellow metal is “a barometer of fear and confidence” and an insurance tool. And as he rightly points out, you don’t trade insurance. So if you’re looking to gold as a safe-haven play, it makes sense to stick to the most conservative ownership options. When you buy gold as insurance, you are looking to at a minimum preserve your purchasing power — and hopefully increase it relative to many other consumer goods and services.

How much risk do you perceive there to be in the financial world? This is the crucial question to ask when assessing the desirability of different gold investment products.

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The Ultimate Guide to Buying Gold