Combining Speculative
Investing and Safe-Haven

If you would like to combine speculative investing and safe-haven, the process becomes a little more hectic. You will need to  decide many portfolio weightings. Another important issue is timing. You are going to need some combination of pre-1933 gold coins, gold bullion coins, and/or silver, palladium, and platinum bullion bars to fulfill this objective. Additionally, you must review the merits of each investment with an advisor with experience and who is a professional, and then, determine personally how your portfolio should be structured, using te guidelines mentioned here as a template.

Miscellaneous Portfolio Concerns
If you believe that there is the chance that you might use gold as money, it would be advisable for you to add ¼-ounce bullion coins and/or pre-1933 European gold pieces that contain approximately ¼ and 1/5 of an ounce of gold. These versatile  pre-1933 European gold coins fulfill two functions: utility as a form of money, along with the protection offered by historic items. An addition or alternative would be the one thousand dollar face value bags of pre-1965 silver coins that contain seven hundred-fifteen ounces of silver and trade relatively close to the content in silver.

If you would like to hedge both inflation and deflation simultaneously, gold is your best option. Gold tends to rise as the currency depreciates in inflationary times. In deflationary times, it tends to least hold its value as the price level drops on most other items, this way preserving the gold owner’s purchasing power. At the same time,  some analysts argue for much higher gold prices during deflation simply because gold is one of the few investments that could survive a massive debt default and bank panic. Such scenario would generate unprecedented demand, which would drive prices higher. If you believe that inflation is the most likely future scenario, platinum and silver must be added to the combination. Another possibility for inflation hedgers is graded rare coins, which have worked fantastically well during past inflationary episodes.

Know Yourself
A critical elemental to a successful portfolio approach is defining your particular needs and goals before you buy your first ounce of gold. Having that in mind, a couple of words are helpful concerning the mind-set with which you pursue your interest in gold ownership.

Some people join the gold market to make a profit, other people to hedge disaster, and some others join with the purpose of accomplishing both. It doesn’t matter into which category you include yourself into, make sure you understand why you are going into the gold market. Convey that understanding to the person with whom you are structuring your gold portfolio. The reasons why have a lot to do with what you own in the end.

Most of the time investors will tell you that any kind of gold will be sufficient because gold is gold after all, right? This type of behavior has helped a large amount of coin shop owners unload unwanted inventory that they hadn’t been able to get rid of for quite some time – bullion manufactured by little known refiners, commemorative coins, art bars, and so forth. It has also assisted more than one boiler room operation meet its sales targets, selling leveraged precious metals positions, exotic coins, and gold stocks which aren’t known to just about everyone in the industry except the promoter making the offer. This is probably a good deal for the seller, but it could mean disaster for you, the buyer in the same vein. Very often, potential investors do not have any more reason for buying gold than “everyone else is doing it.” If the recent stock market debacle is an example, this isn’t really the best approach to owning any investment, and there is no exemption to gold. To start, consider the inscription over the entrance to the temple of the ancient Delphic Oracle: Know Thyself. Know why you want to own gold. Read. Study. Isolate the primary reasons why you have an interest in gold. Contact a few gold firms and ask them questions. There’s nothing like conversation to stimulate thinking. Take time to lay a little groundwork then make your move. The economic and political situation being what it is, there is no better timing than to start now. Know yourself – your needs and goals. Be sure that the gold items you buy match those needs and goals, and you will be a happier, more confident gold investor in the long run.