Gold, platinum and silver as investments?
October 25, 2010 by
Filed under Silver Investment FAQ
I’d like to start investing in precious metals as part of my overall investment portfolio.
Is it better to buy the actual coins, a US Gold Eagle, for instance, buy the ETF, or find a mutual fund that specializes in precious metals?
If there really was an economic or governmental collapse, couldn’t the ETF or mutual fund become worthless as well?
If you assume the worse and the end is coming then you are correct about ETF’s and mutual funds. If you just want to diversify your investment portfolio then ETF’s and mutual funds would be good ways to go. Gold coins are a play on the metal itself and diversified ETF’s and mutual funds are more a play on the precious metals industry and the companies in it.
I myself prefer collector coins but then I am a numismatist.
Assuming the worst, you want to have coins in various denominations, stick with US bullion coins if you live in the USA. Think “making change” , so buy some 1/4 and 1/10 oz gold as well as some silver.
The ETFs are probably worthless in a real collapse, think Madoff, Enron.