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Investing in Gold

Gold coins, gold bullion and other gold-related investments are popular as people are looking beyond the stock market for investment opportunities. In the current economy, there are widely divergent views as to what people should be investing in. This has extended to the idea of investing in gold, whether in purchasing a gold bar, gold coins or in companies which buy large quantities of gold. While some economists and investors are skeptical, many other investors and analysts are becoming increasingly convinced that gold is a great investment for the current economic situation. In late 2009, billionaire investor John Paulson -- who was one of the only investors to correctly predict the bursting of the housing bubble and who made $20 million from 2007 to 2009 as a result -- launched a hedge fund dedicated to gold. At the time it was launched, Paulson said that he personally invested $200 to $250 million into the fund, which buys up shares of gold mines, gold bullion and other gold-related investments. Investing in a fund like Paulson's is one way to get involved in the gold market. Another is to purchase gold coins from coin dealers. With gold trading for upwards of $1,200 an ounce, it's unlikely that most people will be able to afford a gold brick (like you would see in the cartoons). However, investing in a gold U.S. coin brings gold investment with real physical ownership into the reach of the average investor. In addition, investing in gold through coins can be profitable because the coins themselves can turn into collectible items which carry their own, intrinsic value. However, collectible gold coins will have their price marked up because of demand and cost far more than the gold they contain; a gold coin is not a great investment options if you are simply looking at owning gold. Why are people turning to gold coins and other gold-related investments? Many people feel as though gold is a recession-proof investment which has historically appreciated over time regardless of other market fluctuations. It's a great long-term investment -- the short-term price swings can make it a risky choice for the short-term investor but it's almost always a guaranteed winner for the investor with a long eye cast toward financial rewards.



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