Make sure you're buying physical gold if you decide to get some...

If you don't hold it, you don't own it.

One of the big lures of physical gold bullion is that it is an asset that you can clearly and freely own with no counterparty risk. With other assets, whether Treasuries, stocks, real estate, or even bank savings accounts... there is some other party on the other side of deal at all times. If you buy and hold physical gold, then no one else can make a claim against it and there is no entity on the other side of your deal that can default. It also does not carry any tax burden while you hold it (think property taxes that come every year). Holding physical gold in your possession also provides you with a high level of privacy that other asset classes can't match.

Be careful with unallocated storage or pool accounts where your gold is pooled with others, or buying shares in GLD. These are only paper claims on gold, NEVER actual gold itself. If things get bad, you'll never see any gold, only a check made out in depreciated dollars.




Edited by NuggetHoarder (08/09/11 11:03 PM)