If you are anything like my Dad, you would never put your money into anything that you could not hold or see. Therefore, investing in a stock or bond was absolutely out of the question!
Fortunately, there are still investments in tangible assets that can provide a nice return; one of which is gold.
Gold had been in use as a form of money, in one form or another, at least since 2560 BC. Gold has also been the center of desire for pirates, peasants, explorers (including Columbus), miners, and just about every other person throughout the centuries.
The usual benchmark for the price of gold is known as the London Gold Fixing, a twice-daily (telephone) meeting of representatives from five bullion-trading firms. Furthermore, there is active gold trading based on the intra-day spot price, derived from gold-trading markets around the world as they open and close throughout the day.
What are the chances that gold will ever become worthless? Not likely. However, what are the chances that a company and therefore the piece of paper you have invested in will go bankrupt? Well it happens all the time.
Therefore in order to diversify your portfolio, it would be wise to consider gold as an alternative investment. You can certainly invest in gold stocks. However, wouldn’t it be much more fun to actually own a physical piece of gold? Absolutely!
In addition, if you begin to invest in collectible gold coins or other gold collectibles, the value becomes more than just the value of the gold. Rare or other valuable gold coins usually sell for much more than face value. The value becomes a function of desirability and rarity.