Why Owning Gold Bullion Should Be Part of Every Investor's Portfolio

During uncertain economic times gold has been historically proven to be a sound investment. In times of crisis and inflation, people look for a safe haven to preserve existing wealth and to gain exposure to a potential appreciating asset. Owning gold bullion is a flexible and versatile way to invest in gold. In small quantities, bullion can be liquidated to hard currency relatively quickly and is actually considered legal tender in some instances. In large quantities, you can store gold bars in a vault and some companies or mints provide the ability to buy and sell at market prices.

Owning gold bullion is a tangible way to own gold. Gold storage programs are a safe way to own gold because your gold often insured or in a specialized case, can carry a sovereign guarantee. Having some physical gold handy is considered a very prudent move by some because if a crisis sets in that prevent access to cash, gold can be the next best thing because of its universal acceptance as a store of value.

International gold bullion can be purchased through various investment services, dealers and through the mints themselves. Mints have a number of different programs that provide a mechanism for owning gold bullion. In some cases, you can buy ingots or coins from the retail arm of the mint as either an investment grade product or as a collectible product. In other instances, you need to use the accredited network to complete the transaction. Larger bullion transactions are typically undertaken by a dealer and take longer to complete due to the size of the transaction.

Why owning gold bullion makes economic sense

The current economic crisis has left many people concerned about the potential for inflation. Governments around the world have been executing large stimulus programs and central banks have been printing large amounts of money. The amount of debt issuance that is taking place will require servicing for years to come. With most governments facing increased costs and diminished revenue streams, the ability to service this debt is a serious economic consideration. In the US alone, the monetization of existing debt is likely to place pressure on the US dollar. With countries such as Russia and China actively buying up gold and reducing treasury purchases, owning gold locally or in a foreign country is a prudent move.

Before you invest in gold it is important to know which program you are most suited to. There are different options depending on your objective. Bullion, coins, shares and ETF's are all different ways to invest in gold bullion or to gain exposure to appreciation in the gold price. For short term movements in the price of gold, highly leveraged products may be the best alternative provided you know how to manage your risk. For longer term or safehaven purposes, owning gold bullion either locally or through an international gold bullion program could be the best alternative.

Disclaimer: The writer is not a registered investment advisor and this article represents an opinion for educational purposes only. Do your own research and consult an investment advisor if necessary.
Anthony Frost owns and operates http://www.goldbullioningot.com. Learn more about the options for investing in gold bullion ingots including how to buy and sell gold bullion safely and securely.

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