What Kind Of Gold Should I Buy?

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As stock markets crumble and interest-bearing account pay out less and less, this has become a popular question among American investors. There is no cookie-cutter solution for every individual because we all have different needs, desires, and goals.

As a general rule investors who enter the market with plans to "swing trade" - buying when gold prices dip and selling on perceived peaks - should purchase gold bullion. Credit Suisse gold bullion bars and the American Buffalo gold coin are popular selections for bullion buyers. These items trade for a small premium above the gold spot price and since they are easily recognized they are instantly liquid.

Investors who don't want to jump onto the emotional roller coaster of swing trading are advised to avoid bullion products for a number of reasons. As our nation's economic situation worsens the threat of another bullion confiscation, similar to the one that was in effect from 1933 to 1971, grows. Long-term investors could miss out on some extra profits by holding bullion longer than 14 consecutive months because historically another type of gold tends to perform better after that time frame passes.

Certified gold coins like the Saint Gaudens and Liberty Head Double Eagles offer long-term investors security from confiscation and they are historically more profitable than bullion once the investor passes their break-even point. Certified gold coins are 22 karat gold instead of the 24 karat metal that comprises many bullion pieces. However, the 22 karat coins contain the same amount of gold as the 24 karat coinage because 22 karat coins weigh more. A pure gold (24 karat) coin weighs exactly 28 grams (one ounce). A 22 karat Double Eagle weighs just over 31 grams, with copper making up the difference and creating a more durable coin.

In the end the type of gold to buy is entirely up to you. Gold coin analysts have identified ways for both short-term and long-term investors to gain an advantage over the market, but each individual should target the type of gold that he or she prefers. For help with product selection please call our trading floor at 1-800-300-0715 or request an insider's guide to purchasing gold below.