Safe-Haven Investors

The people who are oriented toward hedging disaster most of the time prefer a combination of gold bullion coins and pre-1933 European and U.S. gold coins. The customary split is half of each. The bullion coins will protect your portfolio against bank failures, inflation, deflation, bond and stock market collapses, currency deterioration – the gamut of financial evils. What they won’t protect you against is intervention in the gold market by the federal government, including a potential confiscation, or gold call-in, like what occurred in the Untied States in 1933. for an extra layer of protection against government intervention, you will want to include the historically significant pre-1933 European and/or lower-grade uncirculated pre-1933 United States twenty dollar gold coins. Even though complete protection cannot be guaranteed through the ownership of pre-1933 gold coins (gold ownership is a privilege in the Untied States, it is not a right you have), precedent does offer a strong argument in their favor as historically relevant items.

Be prepared to pay marginal premiums over gold coins of contemporary manufacture even though, by and large, these items still track the gold price. If you rate the possibility of confiscation low, then you should weight your portfolio in the direction of gold bullion coins – anywhere from sixty to one-hundred percent. If you are worried about confiscation and other forms of government intervention in the gold market, such as capital controls, you should weight your holdings in the direction of the historic pieces – anywhere from sixty percent to one-hundred percent, depending upon your level of preoccupation.