Tangible assets such as gold, other precious metals and rare coins are a great addition to any portfolio because they are a good hedge against the volatility of the stock market and are not affected by the same market conditions as stocks and bonds. Many investors will diversify their portfolios right away using gold bullion, however there are many other types of gold that you can purchase to diversify your portfolio with that will also be very beneficial. Experts recommend diversifying your portfolio using gold across three different sectors, short-term growth potential, medium-term growth potential, and long-term growth potential. Gold buying information.
Investing your dollars in these three different sectors will give your portfolio the best long-term profit potential; it will secure your financial future and provide you with the best overall performance. The three recommended tangible assets classes have their own individual benefits to them, however when you combine them all together you are sure to get the best protection as well as the biggest profit potential.
The first level consists of putting 30-40% of your tangible gold assets into your portfolio and hold onto it short-term, a recommended one to three years. The gold to be purchased for this level is gold that is going to give the highest return short-term, which would be gold bullion or investment grade gold. Two specific recommended coins are the 1 oz Gold American Eagle because it moves dollar for dollar with the spot price of gold and the investment grade common date $20 Saint Gaudens Double Eagle because it offers extra leverage to the gold market.
The second level consists of holding your gold medium-term in order to receive the growth potential for these coins. You should allocate 15-20% of your tangible gold assets and hold onto them for three to five years. The type of coins you will want to purchase for this sector is Mint State Gold coins. This would include U.S. gold coins minted between 1890 and 1933. You will want them to be a mixture of the Liberty series, Saint Gaudens and Indian Heads.
The third level consists of holding your gold long-term in order to receive the highest return on your gold. The minimum holding time would be five years. You will want to put 30-40% of your tangible gold assets into this sector and it should be in rare gold coins. The reason for the coins to be rare is because they have historically produced the highest long-term returns and since their supply is limited a high demand for them can increase their price rapidly.