Syndicate
Gold Portfolio Risks
If you are the type of investor that considers that you will probably need to use gold as money, you should consider adding in ? ounce bullion coins and or pre 1933 European gold pieces that have around ? and 1/5 of an ounce of gold. The good thing about the pre 1933 European gold coins is that they can be used for cash, and they are additionally protected since they are historic items. One other option would be the $1000 face value bags of pre 1965 silver coins that have 715 ounces of silver and trade quite similar to the silver content.
If you are interested in hedging both inflation and deflation at the same time, the best option in this case is gold. Gold has a tendency to rise in inflation as the currency losses value. During deflation it has a tendency to lasting hold its value as the price on other things drops, and this allows the owner to continue having the same power of gold in hand. Simultaneously there are analysts that quarrel there should be much higher gold prices during deflation since gold just so happens to be one of the investments that would hold out during a huge debt default and bank panic. That type of problem would cause exceptional demand and this would make the prices go up higher. If you are the type of investor that believes that inflation is more probable to occur in the future, silver and platinum should be included in the mixture of your portfolio. Rare coins are also another option for investors looking for inflation hedgers.