According to Michael J. Kosares, one of the country’s foremost gold experts and the author of numerous books on the gold market, gold should essentially be thought of as ‘wealth insurance.’
“You cannot approach [gold] the way you approach stock or real estate investments,” Kosares says. “Timing is not the real issue. The first question you need to ask yourself is whether or not you believe you need to own gold. If you answer that question in the affirmative,” he goes on to say, “there is no point in delaying your actual purchase, or waiting for a more favorable price which may or may not appear.”
In other words, gold is one of the most secure financial investments available, and if you’re ready to diversity your investment portfolio with the addition of gold, there’s not much point in waiting for prices to fall, which tends to happen during times of economic crisis. There were periods during the height of the 2008 financial crisis, for instance, during which demand for gold was so great that actual shortages occurred.
So yes, now certainly is a good time to buy gold, which, aside from its positive relationship with the US dollar, has been performing well in other currencies for a few months now.
One other words of advice: Don’t put too much stock (no pun intended) into the opinions of the analysts and portfolio managers who share their market outlooks in the media.
The truth, of course, is that no one really knows what’s going to happen to the price of bullion over the next week, or over the next year. As is the case with most other investments, gold will give you the greatest return when you take a longer-term view—somewhere between two and three years at a minimum.
If you’re interested in dipping your toe into the gold investing waters, Doylestown Gold Exchange is a great place to start. We often recommend that beginning investors purchase contemporary bullion coins or historic pre-1933 gold coins, and we’d be pleased to speak with you about our current gold coin inventory.
We’re located at 812 N. Easton Road in Doylestown, PA, in the Cross Keys Plaza shopping center. We’ll look forward to talking bullion and precious metals with you soon.
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