When the US dollar weakens, many investors flock toward gold. The gold merchants always stress gloom and doom no matter how good the economy or world looks.
The possible end of the world makes people feel safer with gold. Perhaps they think they can trade it for food in a crisis. If hyper inflation comes, it would be good to have some of your retirement funds in gold. In this article I'd like to give you some of my favorite gold plays. Before we do that, I'd like to give you my gold warning.
In my opinion, the biggest signal to stay away from gold is when everyone is buying it! So, if the crowd is flocking toward gold, stand back and put your gold plan into action after the gold price plummets (unless you are wanting to cash in on the dropping price of the commodity - more on that in a minute). You don't want to get caught with the herd when the bubble burst. Over the years, that has always been the pattern with gold. It runs up in price, just before the blow up. That being said, my number one way to invest in gold is with rare gold coins. Some advisors will tell you that you can't have coins in your IRA or other qualified plans, but you can. The caveat is that you have to let a 3rd party administrator hold onto the coins for you. One company who specializes in IRA gold is IRA custodian Goldstar Trust (goldstartrust.com).
If you can buy a rare coin when it's gold content is about equal to or less than the rare coin value, that is the best (especially with coins that are.999 ounces)! It does not happen very often, but that opportunity does exist at times. This way, if the gold price tanks, the rare coin value keeps your investment fairly safe. Also, rare coins generally go up in value over the years, so if you need to cash in you can. If the gold price goes up over the value of the rare coin, you get the best of both worlds! Of course, you need to stick to quality coins from reputable dealers.
The next way I would invest in gold is inside of an ETF. Here are a few to consider.
There are even ETFs that make money when the gold price is dropping. If you spot a big bubble in gold (like when everyone and their brother has been buying gold) you might really do well with bearish ETFs like:
FUND & Ticker
PowerShares DB Gold Short DGZ
UltraShort Gold ProShares GLL
PowerShares DB Gold Double Short DZZ
Just make sure the price is dropping, and not just temporarily pulling back (you can see that by pulling up a simple chart on gold, and familiarizing yourself with price patterns).
Gold is not my favorite thing for retirement planning, but if you must have gold in your retirement savings plan, these are my favorite ways to do it.
The possible end of the world makes people feel safer with gold. Perhaps they think they can trade it for food in a crisis. If hyper inflation comes, it would be good to have some of your retirement funds in gold. In this article I'd like to give you some of my favorite gold plays. Before we do that, I'd like to give you my gold warning.
In my opinion, the biggest signal to stay away from gold is when everyone is buying it! So, if the crowd is flocking toward gold, stand back and put your gold plan into action after the gold price plummets (unless you are wanting to cash in on the dropping price of the commodity - more on that in a minute). You don't want to get caught with the herd when the bubble burst. Over the years, that has always been the pattern with gold. It runs up in price, just before the blow up. That being said, my number one way to invest in gold is with rare gold coins. Some advisors will tell you that you can't have coins in your IRA or other qualified plans, but you can. The caveat is that you have to let a 3rd party administrator hold onto the coins for you. One company who specializes in IRA gold is IRA custodian Goldstar Trust (goldstartrust.com).
If you can buy a rare coin when it's gold content is about equal to or less than the rare coin value, that is the best (especially with coins that are.999 ounces)! It does not happen very often, but that opportunity does exist at times. This way, if the gold price tanks, the rare coin value keeps your investment fairly safe. Also, rare coins generally go up in value over the years, so if you need to cash in you can. If the gold price goes up over the value of the rare coin, you get the best of both worlds! Of course, you need to stick to quality coins from reputable dealers.
The next way I would invest in gold is inside of an ETF. Here are a few to consider.
There are even ETFs that make money when the gold price is dropping. If you spot a big bubble in gold (like when everyone and their brother has been buying gold) you might really do well with bearish ETFs like:
FUND & Ticker
PowerShares DB Gold Short DGZ
UltraShort Gold ProShares GLL
PowerShares DB Gold Double Short DZZ
Just make sure the price is dropping, and not just temporarily pulling back (you can see that by pulling up a simple chart on gold, and familiarizing yourself with price patterns).
Gold is not my favorite thing for retirement planning, but if you must have gold in your retirement savings plan, these are my favorite ways to do it.
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