Articles - Archived Money Matters
(Copy and paste the text into your document)Investing in Gold
You may have noticed an increase in the number of radio and television commercials promoting gold as a long-term investment that every investor should have in their portfolio. That's because this precious metal has been considered one of the best performing investments lately, actually doubling in value over the last two years. But should you invest in gold now? Here are some points to consider before adding gold to your portfolio:
Forms of gold
Gold can be purchased in several ways: as bars, bullion, coins, jewelry, mutual funds, exchange traded funds (ETFs) or futures, which is where you agree to buy or sell gold at a certain price at a date in the future. Unless you have proper storage capacity for gold in its physical form, mutual funds or ETFs may be the appropriate choice.
How to purchase gold
Investors purchasing gold bars and coins can verify reputable dealers by visiting the Better Business Bureau's website at www.bbb.org. You can also purchase recently-minted bullion coins through the U.S. Mint at www.usmint.gov. A more liquid alternative is to purchase mutual funds or ETFs on the major stock exchanges, which can be traded at any time.
Is gold right for you?
Gold should not be the only asset in your investment portfolio, but it can be a small part. This is because gold traditionally moves inversely to the dollar, so it's good for balancing out a diversified portfolio created to meet long-term objectives. Before you decide to purchase gold or any other asset, review your risk tolerance, portfolio diversification and time horizon to make sure it makes sense. You'll also want to research all new investments thoroughly, understand the risks and seek professional advice.If you have questions about investing in general, call an LGFCU financial planner at 877.367.5428. We'll help you seek all your golden opportunities!
