Gold is an important part of your investment portfolio. But when you’re buying gold, you don’t want to overpay and you need to be on the lookout for scams.
In a recent podcast, Peter Schiff said he doesn’t view gold as an “investment.” He considers gold “savings.”
Instead of holding dollars, or holding euros, I’m holding real money. I’m holding gold.”
Of course, there is volatility in the price of gold, just like there’s volatility in the price of every currency.
If you decide to hold Swiss francs instead of US dollars, every day, those Swiss francs are going to change in price. There’s an exchange rate between the dollar and the Swiss franc. Well, there’s an exchange rate between the dollar and gold. There’s an exchange rate between every currency and gold. I think gold is the only real money and therefore, I would rather own it relative to its fiat alternatives that are inferior.”
The key is to buy physical gold from a reputable dealer and don’t overpay.
When you buy physical gold, there are two main components to the price you’ll pay. The first is the spot price. That represents the market price of the metal when you buy it. It’s the “price of gold” you see quoted in the financial media every day. The second component is the premium, an amount over the spot price. This is how sellers cover their overhead and make a profit. (There…
