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I have recently been buying gold bullion coins. Kruggerands. So far, I've accumulated enough to weigh down most of the manuscripts of all the short stories I will never published. All told, I probably have about 2% of my net worth tied up in gold bullion.
Is that a good thing? I don't know.
I like gold because it's pretty, portable, and private. I have no idea whether its price will rise. (I have no confidence in my ability to predict the prices of things -- stocks or commodities -- that I can't control. I'm barely able to predict the prices and fees of the things I can control, like the books I write and the consulting I provide.) But recently, I read something that made me wonder if my timing is good. From Alex Green, the investment director of the Oxford Club:
"The price of gold peaked on January 21, 1980, at $850 an ounce. Today it trades at roughly half that level. Yet each year the gold bugs proclaim that this is the year the yellow metal finally takes off, making true believers rich, rich, rich.
"Mostly, we've scoffed. Our view is that gold should play a part in every serious investor's portfolio. But not the leading role.
"This year, however, could be different. The gold bugs may finally have it right. The dollar is in a tailspin, terrorist groups are threatening mayhem, commodity prices are rising, and worldwide demand is stronger than ever.
"No wonder gold futures recently hit a 17-year high. And it's likely the barbarous relic is headed higher still. That means gold bullion and coins will appreciate nicely. Numismatics -- high-grade collectible coins -- should do even better.
"But gold mining stocks should be an out-of-the-ballpark homer. Especially shares in the world's two premier gold mining companies."
Is that a good thing? I don't know.
I like gold because it's pretty, portable, and private. I have no idea whether its price will rise. (I have no confidence in my ability to predict the prices of things -- stocks or commodities -- that I can't control. I'm barely able to predict the prices and fees of the things I can control, like the books I write and the consulting I provide.) But recently, I read something that made me wonder if my timing is good. From Alex Green, the investment director of the Oxford Club:
"The price of gold peaked on January 21, 1980, at $850 an ounce. Today it trades at roughly half that level. Yet each year the gold bugs proclaim that this is the year the yellow metal finally takes off, making true believers rich, rich, rich.
"Mostly, we've scoffed. Our view is that gold should play a part in every serious investor's portfolio. But not the leading role.
"This year, however, could be different. The gold bugs may finally have it right. The dollar is in a tailspin, terrorist groups are threatening mayhem, commodity prices are rising, and worldwide demand is stronger than ever.
"No wonder gold futures recently hit a 17-year high. And it's likely the barbarous relic is headed higher still. That means gold bullion and coins will appreciate nicely. Numismatics -- high-grade collectible coins -- should do even better.
"But gold mining stocks should be an out-of-the-ballpark homer. Especially shares in the world's two premier gold mining companies."
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