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The Role Of Gold Bullion Coins In Your Portfolio
by: Dean Brown

Are Gold Bullion Coins Worth It?

Today's world offers investors plenty of avenues for their money. Which ones are worth it and which ones just bring unnecessary risks with very low chances of profit?

Many people have turned to buying gold bullion in order to improve their financial situations. We know gold has been around ever since man first started living in a society. Gold has grown together with mankind, or vice-versa, depending on how you want to look at it. Let�s have a look at the process of investing in gold bullion coins and at some of the factors related to such a financial placement.

What Are Gold Bullion Coins?

A gold bullion coin contains one ounce of pure gold. The quality or origin of the gold may differ, however, so make sure to only acquire gold bullions from respected companies that have dozens of years of tradition and trust. Here are some of the most popular and trustworthy gold bullion coins: the American Gold Eagle, the Australian Nugget, and the South African Krugerrand.

Buy Gold Bullions! � Here Is The First Reason Why

Listed gold bullion coins are internationally renown and recognized. When compared to gold bars, coins are much more versatile. You can travel to any part of the world and find a gold dealer who will exchange your bullion coins. Bars take longer to sell, as they need to be cleared and checked for accuracy and authenticity. Also gold coins are a lot easier to carry and store in a safe place. This feature becomes especially useful if you are storing gold inside your own home.

Gold Bullion Coins Are Easily Divisible

This option may not seem important at first, but it becomes really useful in some situations. If you just want to sell a small part of your gold reserve you can always just select a few coins, as compared to gold bars, which can only be sold whole. This increases the versatility of your gold reserve, as you will never have to worry about selling it all at once. You can also benefit from market forces. If the price of gold suddenly skyrockets you can sell a quarter or half of your bullion coins and still keep a safe quantity of the precious metal.

Gold Bullions Are Safe

I have saved the best for last. There is no more persuasive factor than the security offered by an investment. You can try to go with mutual funds, real estate investments, or overseas placement, but gold bullion remains one of the safest alternatives for your cash.

If you are looking for spectacular investments and immediate profits, maybe gold bullion coins are not the answer for you. On the other hand, if you are trying to establish an investment that offers equilibrium and security, gold coins should be right on top of your list! They are probably the best method you can choose in order to protect your wealth in the unfortunate case of an international economic collapse.

International financial problems are often brutally reflected in our everyday economy. Gold coins are almost immune to such incidents, as they have been for centuries. Even if many people associate gold bullion with pirate stories or fairytales, the fact is that investing in gold coins can make the difference between a smart and a risky financial position.

About The Author

Dean Brown is the Author of "A Guide To Investing in Gold", an e-book decidated to helping people understand that gold is an essential part of any investment portfolio. To get more details and enroll in Dean's free mini-course on Gold Investing, go to http://www.goldinvestingbook.com.

This article was posted on November 05, 2005

10 Commandments For Investing In Bullion
by: Mark Walters

There are some ways to protect a stock portfolio, and increase leverage, through investing in bullion, which cannot be found in any other investment. For one thing, bullion can be kept at home and traded at the local store. Many of the investors who survived the 1920 stock crash did so by using their gold. The more volatile the economy becomes, the higher the demand for bullion grows. The more risk banks� take one, the higher the price of bullion grows.

There are two main bullions traded in North America, gold and silver. Silver is starting to interest many investors because the stock piled supply is gone. Every year the demand outstrips the supply by a larger percentage.

However, investing in bullion is not risk free. An investor can lose if they do not manage their portfolio wisely.

#1 Volatility Increases the Value of Bullion

In most cases, when fears increase, inflation climbs, banks fail, stocks spiral in a bear market, and the gurus stop making predictions then bullions increase in value.

#2 Timing is Everything

Many investors like to follow the reports, however, most of the time the moment has passed by the time the report is released. To pick the right time to buy and sell bullion the investor needs to take a global look at the markets. The central banks are not the ones to follow � in fact, they are the ones following the trends.

Bullion investors should be leading the markets, taking advantage of the economy dynamics, and paying attention to the non monetary considerations.

#3 Do Not Trust Strategies

Bullion does not follow the strategies and trends the way other markets do. Returns from a "buy and hold" strategy can overcome inherent volatility. Many investors try to outsmart the market by hyperactive trading. Success depends on the occurrence of "fat tail" events that lie outside the trading models.

#4 Beware Passive Investing

Many investors sit on bullion as if it was cash that can be sold at a profit when they want to sell, whenever that is. This is not true. It is impossible to decide one morning to sell some bullion and earn a bit of extra cash without understanding what is happening in the world.

#5 Invest in Mining

Equities of mining companies offer more leverage than ownership of a metal. Metal equities appear expensive in comparison to regular companies because they contain an imbedded option component for a possible increase in the metal�s price.

The share price sensitivity to a possible increase in metal price is related to the cash flow from current production.

#6 Gold Fever

Bullion is a solid investment, but being caught up in gold fever. Avoid offbeat "exploration" mines with little or no current production and large appetites for money. Speculate only with solid companies who have done their research.

#7 Bullion Coins

When buying bullion, do not accept certificates. If the gold is to be stored, then expect it to be stored in a segregated vault, subject to unscheduled audits. Better yet, if possible, store the gold yourself.

Do not value a coin on the �mint� value it has. Dealers may try to increase a coin�s value based on the year it was minted, or a certain face value it may have. Bullion is invested based on its purity, not its face value.

#8 Bullion Purity

Not all bullion is the same quality. There are different purities. Buying bullion from a less than reputable dealer may have the investor with a greatly depreciated portfolio.

#9 Do Not Trust the Gurus

Gold is a controversial, anti establishment investment. Its value is not controlled by the banks, or by a single government. Conventional financial media and brokerage house commentaries will not help the gold investor.

#10 Observe the Intangibles

A natural disaster, a pandemic, an airline crash, can send the price of bullion far higher than its current price � by several multiples. This is what gold investors wait for.

These 10 commandments of investing in bullion can help an investor build wealth and protect their portfolio through the next few decades.

About The Author
Mark Walters is a third generation entrepreneur and author. He offers free training and investing videos designed to speed you towards financial independence at http://www.CashFlowInstitute.com