Gold coins are often considered during tough economic times. People are always looking for the safest place to place their financial portfolio to guard against the inflation or deflation of their investments. Gold has always been a strong contender for this protection.
Once the economy takes a strong position in altering someone's portfolio on short notice, gold coins are quick to be considered as the protection factor. The subsequent question is what kind of gold coins should you buy?
The current economy is so volatile you are probably not sure where to place or move your investment dollars at a time like we are currently seeing. Obviously, your best advice is to move the majority of your investments out of stocks and into the bond market, but precious metals should be another strong consideration. Precious metals are safer since they are a tangible investment and the market has always considered them to be essential in any economic conditions.
If you are looking to protect your longer term investments choosing gold coins that date prior to 1933 and can be a mixture of European and American gold coins. These type of gold coins have both historical and collector benefits which helps maintain their value over simple gold bullion.
Gold coins are often considered insurance against a person's portfolio, but just how much of a your portfolio should gold coins play as an insurance factor. The rule of thumb is a minimum of 10% and on the high end around 30 to 35%. This will give you an assurance that your ratio of diversity is well within the range of most gold coin investors.
The short term investors will often pass on the precious metals market if the economy is somewhat stable and the there are little swings going on with the economy. Now is not one of those times. Much like the oil market, precious metals seem to swing in union with the oil values. Investing wisely is to choose a commodity that regardless of the economy, your investments will not suffer dire consequences no matter how severe they swing.
Since gold coins and gold bullion are a safe investment, you should consider buying with your investment dollars to protect your financial portfolio. Buying gold is easy and selling is equally easy to sell. What more could make you feel better about any investment safeguard than that?
With any serious investing ask your financial planner how much of a percentage your investment should be in gold, but if they suggest anything less than fifteen percent, seek a second opinion, especially during these tough economic times.
Watching your gold coins or gold bullion values and how they continue to stay above most other investments you can check the current gold prices and values for yourself. Gold is not the highest valued precious metal, but when it comes to an affordable and safe investment that will see your investments safely through any economic conditions for the short and long haul, make sure you give strong consideration to adding it to your retirement portfolio as well.