Gold bullion is a great investment.  It has averaged a rate of return of 17.1% over the last 9 years.  It has fulfilled its role as a financial insurance for those that have owned it during the 9/11 crisis, banking failures and stock market correction during that same time frame.  So not only did gold bullion appreciate dramatically (over 340%) but it also kept people safer.  But where is gold headed?

Ask yourself the following questions:  Is the U.S. economy is on its way to recovery?  Is the dollar going to continue to be the world’s reserve currency for the next 20 years?  Is our national debt here in the U.S. repayable?  Is the government going to continue to print money?  If you answered yes to any of these questions then gold is a good fit for your portfolio.  Gold is first and foremost a financial insurance.  It should be used to protect the paper assets you have accumulated throughout the years.  If you don’t have any, you are vulnerable.

But where is gold headed.  Many experts would say it is going much higher from here.  Spot price predictions are all over the board.  From $1,300 to $47,000 per ounce before this bull market is all over.  No one has a crystal ball, so take predictions with a grain of salt.  Look at underlying trends and understand how bull markets work.  We are currently experiencing a full fledged second phase.  Very few people in the U.S. actually own gold and this will change. We will eventually reach the third and final phase where gold will reach higher and higher highs.  This run up will typically be dramatic because everyone will want to own gold at any price.  In my opinion gold bullion is a great investment.

What are better than gold bullion are numismatic/rare gold coins.  They have consistently proven over the years to offer better protection and performance for their owners.  The most common $20 Liberties and $20 Saint Gaudens have achieved an average rate of return over the past 9 years of 27.01%.  Nearly double gold bullion.  These coins are private and confidential and offer protection from gold confiscation.  They have a higher cost of doing business so you need to be able to hold them long enough to allow them to do what they need to do.  Most companies will recommend 3 to 7 years, but this will depend on the trend cycle.  If gold takes off watch for rare gold coins to do the same.