Before you buy more gold you need to make up your mind about something.
Are you buying gold coins and bars as a hedge against future events?
Or are you buying gold as an investment?
If you are buying and taking physical possession of gold as a hedge against some future downturn in the economy, then weekly or monthly fluctuations in gold prices should mean nothing to you.
If you do find yourself fretting about the ups and downs in prices, you may want to sit back and reevaluate your intentions.
Here is a checklist for you.
I buy and own physical gold because…
– I don’t entire trust the global financial system and markets, and want to protect at least part of my wealth.
– I may not be an investment expert, but common sense tells me the economy is still in a bad way, and could easily get worse.
– While the experts have always told me to trust in stocks and bonds, I suspect they say this for their own benefit more than for my own.
– I own gold as long-term insurance against a future downturns or catastrophe. I don’t worry about the ups and downs in gold prices along the way, because I know that if a real catastrophe does hit the world’s financial markets, the gold I own will leap up in value. In other words, its value will increase at exactly the time I need it the most.
If this is how you think, you are a gold owner, not a gold investor. You are not buying gold to make quick profits, you are buying gold as an insurance policy. If gold does go up in value, without any catastrophic events taking place, so much the better. That’s pure gravy.
However, if you can’t stop watching gold prices, and wondering which way they will go, maybe you are a gold investor. If that is the case, you may want to review your strategy.
Should you be putting all your money into gold coins? Or should you also be investing in ETFs and in gold mining stocks?
Bottom line…if you are a gold owner, buying coins and bars as a hedge, stop worrying about ups and downs in gold prices.
The only reason you might want to keep an eye in prices is to identify the best times to buy more gold, which is typically during price corrections.
You can buy gold coins and gold bars online at GovMint.com.