Thursday 20 August 2009

Gold Stock or Gold Bullion

There are arguments about whether people should invest in stocks or bullion when buying gold. This is a very simple matter so far as I am concerned. If you have a lot of money to go around then you can afford to buy both, in order to spread your investments.

But if like me you are just worried that our current paper money may lose its value and you want some gold bullion stored away for that rainy day, then please just stick to bullion, and buy gold coins that can be easily sold off for cash, gold bullion bars are much more difficult to sell off and you may even have to sell these at a bit of a loss, if you have to produce proof of its authenticity.

Gold stocks and bonds are speculative investments, gold bullion coins and bars means you have the actual product in your possession or in the vault of your bank. I would therefore prefer to have the physical ownership than speculative certificates that could mean big losses or gains down the line.

1 comment:

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