Done with Goldline? There’s More Than One Way to Buy Into Gold

I’m sure you saw today that Goldline is being investigated for fraud. If you’ve turned on the TV or tuned into conservative talk radio over the past few years, you’ve no doubt seen or heard the pitch from Goldline: add Gold or other precious metals to your portfolio to provide a hedge against future inflation caused in part by bailouts and run-away government spending. Not a bad pitch. Fear sells.

Goldline InternationalIt’s been suggested that Goldline uses bait and switch type sales tactics and has a huge profit margin on certain coins that they sell. Basically, people call up Goldline to buy bullion and Canadian gold coins, and the sales rep pushes other high margin products on them. We’ll have to wait and see if they were actually being fraudulent in their methods. I personally think the investigation has more to do with politics than anything. Goldline is just like any other business. Concerned with turning a profit.

Either way, the happenings at Goldline, good or bad, should have no effect on your decision to buy gold. Other than to encourage you to price shop when buying coins.

Different Ways to Buy Gold

There are actually several different ways to buy gold, not just the bullion and coins that Goldline sells. I hesitate to say “invest” in gold because it is a commodity, and has no internal growth potential. It’s a store of value. And investing in gold is really just speculation. And on the surface, from my limited point of view, it looks to be an awful time to be speculating in gold. Look at this bubble:

30 Years of Gold

30 Years of Gold

But what do I know? Some are still suggesting gold is a good buy. Anyway, if you want to buy gold, here’s some different methods:

  • Gold Bullion and Coins – buy Gold Bars and Coins
  • Gold Jewelry
  • Gold Exchange Traded Funds (ETFs)
  • Gold Mining Company Stocks, Mutual Funds, and ETFs

Each of these investment types have their positives and negatives. I encourage you to do your own research and fully understand the investment product you’re getting into. And as always, as with any single investment, keep your gold holdings to only a small percentage of your entire portfolio.

Interesting fact: all the gold mined in the world could fit into just one 20 meter cube. That could probably fit in most suburban home backyards.

Do you own gold? Why or why not?

Buy Gold Online from APMEX.com



Last Edited: February 15, 2012 @ 9:38 pm The content of ptmoney.com is for general information purposes only and does not constitute professional advice. Visitors to ptmoney.com should not act upon the content or information without first seeking appropriate professional advice. In accordance with the latest FTC guidelines, we declare that we have a financial relationship with every company mentioned on this site.
About Philip Taylor

Philip Taylor, aka "PT", is a CPA, financial writer, FinCon CEO, and husband and father of three. He created PT Money back in 2007 to share his thoughts on money and to meet others passionate about managing their finances. All the content on this blog is original, and created or edited by PT. Read more about Philip Taylor, and be sure to connect with him on Twitter, Facebook, or view the Philip Taylor+ Google profile.

Comments

  1. myfinancialobjectives says:

    20 meter cube? Are you kidding me! That’s ridiculous! Cool fact!

    I do not own gold and do not intend on buying any. I’m guessing that gold is a bubble and will burst, or at least level out within the next two years.

  2. Just want to make sure it’s clear that I didn’t write that gold article. I wrote an article prior to that one which shows that gold is basically a hedge against inflation and really has no growth potential beyond that (unlike investing in a business via stock purchases).

    That said, you could time the purchases to beat inflation and other type of investments — but as we all know, market timing is not a good idea.

  3. @Pinyo – definitely knew it wasn’t you. sorry if I misled anyone. here’s the link to Pinyo’s opinion on gold. http://www.moolanomy.com/497/gold-hits-1000-should-i-invest-in-gold/