With an economic crisis looming over the horizon, investors have to be smart and turn to a reliable commodity that has withstood the test of time. The value of gold has been the subject of debate among experts and whether it adds value to one’s portfolio. If there’s one thing both for and against gold can agree on, is that it’s been here before the stock market and will continue to exist in the foreseeable future. Gold’s value has always been determined by supply and demand like any other commodity and the only thing that makes it different is that consumption doesn’t play any major role. Much of the gold ever mined is still in existence in its physical form today and this is one of the reasons why it’s very stable.
Experts like Jim Grant believe that by making the necessary steps in going back to the gold standard, America would be able to get out of its debt. If you’re unfamiliar with the concept and value of gold, his interviews and books are an interesting point of view.
If you’re looking to add gold to your portfolio, there are two popular ways of doing this. The first one is by ETF’s and the second is by buying physical gold. The first option gives you the convenience of any other stock and is a more diverse way of investing in the gold mining industry. It’s also a cheaper way of investing in gold since not everyone can purchase by the ounce. Some of the popular ETF investments out there are SPDR Gold Trust and iShares Gold Trust.
The second option is a more direct approach: owning gold for buying/selling or as a form of hedge against inflation or currency instability. While most investors think of owning gold to be tedious because of the inherent security risks and cost of storage, technology offers a solution. Investing through the internet is now the most popular choice if you want to own physical gold. You get all the benefits without the hassle of storage problems. According to Bullion Vault, the company was setup to clear two of the major obstacles when private individuals would like to own physical globe: Access to the professional bullion market (to get the best price for gold) and access to professional vaults. Bullion Vault is one of the few sites endorsed by the World Gold Council.
Like any investment, research and observing how the players behave in the market is crucial to make sure you’re making the right choice for your specific needs.