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.
It’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:
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?