How to Buy Physical Gold

It is therefore prudent to have some of this precious metal. Contrary to the notion that you should save money to create wealth, the reality is that the knowledgeable investors know that the real measure of wealth is in the amount of physical gold that you own – and not your bank balance.

Gold is a traditional hedge against inflation or deflation. Against currency devaluations. Against avaricious or incompetent governments or Central Bankers. Or shall I just say, in a less politically correct manner, that America is bankrupt and Gold is the only real money? If you invest in Gold, you no longer have to rely on the “full faith and credit” of the US government – which is declining sharply.

If you are reading this article, chances are that you are aware of the rapidly escalating worldwide credit and banking crisis and the crumbling fiat monetary systems. Most likely you are worried about inflation eating up your hard-earned savings, the stock market malaise, and the deflation in the housing bubble crushing your home value. Buying physical gold is an excellent hedge against inflation, and against almost any type of crisis. You wont find a single fiat currency throughout human history that has stood the test of timeĀ all of them went to their intrinsic value zero. Gold on the other hand is the ultimate form of money, because it cannot be destroyed through inflation and is nobodys liability.

Regardless, any gold investment at spot price is a good one. And in today’s economic climate, paying a little bit over spot price is even okay. Since the economic recession hit full gear in 2008, the price of gold is like a beachball underwater. The price can only stay low for so long – and someday you may be kicking yourself for not buy gold at anything remotely close to the current spot price.

Ultimately, I favor having a mixture of investment vehicles and storage locations. The old adage about not storing all of your eggs in one basket is certainly applicable. Split up your precious metal holdings between physical metal and shares of quality mining companies, while owning both gold and silver and storing part of your physical assets at home and the remainder with a company like BullionVault or GoldMoney. This gives you exposure to the leverage offered by mining stocks, the insurance offered by having the metals in your possession and the safety of having a portion of your assets stored professionally.