Tips for Best Portfolio Diversification with Gold Bullion

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Tips for Best Portfolio Diversification with Gold Bullion

Tips for Best Portfolio Diversification with Gold Bullion

So you’ve done your research and you’ve decided that gold bullion’s the direction you want to take things. You’re looking at the unstable economy and the uncertainness of many people’s retirement savings, and you know that you’ve made the right decision. There’s just one problem: you’re not sure exactly where to go next.

When it comes to Gold bullion Best Investments and Collecting ,the process can be evaluated with relative ease. Want to know how to spot the good deals?

Quiz yourself and see how many questions you get right .

1 . If your goal is to hedge your portfolio investment, what’s your best option ?

a) GLD
b) ETF and gold mine shares
c) Gold bullion

The right answer is C. Many ETF and stock positions don’t track as closely with the true price of gold the way that gold bullion coins or bars will. When you’re using gold diversification with the intention of bringing stability to your portfolio, gold bullion is your best bet at producing results. Remember that it’s not about sticking to one type of gold. It’s about making sure that your goals and your portfolio are inline .

2 . The Gold Canadian Maple Leaf weighs 1 troy ounce and is composed of .9999 gold .

The Gold American Eagle’s closest equivalent weighs 1.909 troy ounces and is .9167 gold .

Between the two of these coins, which one has more value on the market ?

a) Neithercanadian maple leaf
b) The Gold Canadian Maple Leaf
c) The Gold American Eagle

The right answer is A. Although you might think that weighing more or using finer gold would tip the scales in favor of one or the other, the truth is that gold bullion coins aren’t evaluated that way. What matters is how much gold was used. If you were to melt these coins down, the gold content would be the same. That’s what makes these coins equal .

3 .  As an investor you’re on the market for new coins in light of what you’ve been hearing. The newspaper has been reporting rumors of new regulations and the possibility of a gold seizure hasn’t been taken off the table as of now .

In order to maintain the best chance of keeping some of your gold acquisitions you opt to purchase ?

a) Gold bullion coins that have been produced within the last 10 years
b) Historic gold bullion coins
c) A mixture of everything. You have to cover all your bases.
d) Gold bullion bars

The answer is B. While more modern coins are certainly fantastic when it comes to hedging your portfolio and generally protecting your assets, contemporary bullion coins and gold bullion bars can be risky if the government approves a gold seizure. Since you never know when the government might go mad, many investors like to have a supply of historic coins on hand. Just in case the unthinkable ever happens (again) .

4 . You’re browsing through various coins when you notice that the Franklin Mint has issued some truly stunning ones.

You can hardly take your eyes off of the obverse. You’ve seen such coins as the Chinese Panda and the Gold Mexican 50 Peso, but there’s just something about the way this other coin absorbs your attention .

As a collector, it’s clear that it only makes sense for you to buy ?

a) Gold Mexican 50 Pesosgold mexican 50 pesos
b) Chinese Pandas
c) Franklin Mint coin
d) all of the above

The correct answer is D. Although their coins may be valuable and their collections priceless, collectors purchase coins mostly for the sake of having them. This is perfectly fine if collecting coins is all that’s going on.
For a moment here though, let’s think about this from an investor’s standpoint.

Of the 3 coins discussed in this question the Franklin Mint, the Chinese Panda, and the Gold Mexican 50 Peso, the Chinese Panda’s the coin that best fits these criteria .

5 . You’re an extremely premium-conscious investor. You strongly believe that the best way to maintain your portfolio is by filling it with low premium gold bullion coins. You casually browse through the coins that your company has to offer and you stumble across a ¼ troy ounce Gold American Eagle, the 1 troy ounce Krugerrand, and the ½ troy ounce Gold Canadian Maple Leaf.  

 As a serious believer in low premiums, what’s your order of preference ?

a) 1 oz. Krugerrand, ½ oz. Gold Canadian Maple Leaf, ¼ oz. Gold American Eagle

b) ½ oz. Gold Canadian Maple Leaf, 1 oz. Krugerrand, ¼ oz. Gold American Eagle

c) ¼ oz. Gold American Eagle, ½ oz. Gold Canadian Maple Leaf, 1 oz. Krugerrand

d) 1 oz. Krugerrand, ¼ oz. Gold American Eagle, ½ oz. Gold Canadian Maple Leaf

The answer is A. The smaller the coin, the higher the premiums associated with it.

Why?

It all comes down to production costs. No matter how big or small the coin is, the production cost is the same. So on a per oz. basis, the ¼ oz. coin is more expensive than the 1 oz. coin. Who would’ve guessed ?

Why do investors and those saving for retirement gravitate towards gold in the first place ?

Is it simply the thought of having precious metals in your IRA ?

Is it a means of stabilizing your interest rates ?

To a large extent, the answer is “both”.

How did you do on the quiz? In real life, spotting which are the Best gold bullion Investments and Collecting is likely to come from takes practice. However with the trained eye of a professional, diversyfying your retirement account with precious metals doesn’t have to be rocket science.

 

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