I’ll begin where I left off last week: Do I think gold can be part of an overall investment portfolio? Sure! But, of course, it depends on your situation. If you want to put 5 to 10% into gold as part of a diversified portfolio, I am not opposed to that. What I am concerned about is transferring all of your IRA into gold. I’ve rarely seen an “all in strategy” work with any investment, let alone gold.

 

That said, I am not oblivious to the reassurance that gold investing might offer. If a few gold coins tucked under your pillow will help you sleep better at night, then, by all means, buy them. In the long run, it’ll probably cost less, and have fewer side effects, than prescription medications!

 

I’ll leave this topic with a few suggestions for those of you who are still considering gold as an investment:

 

1. Determine which type of gold buyer you are and why you want to buy it.

 

2. Understand that those who sell gold have a lot invested (no pun intended) in your purchase. I’m sure celebrity spokespeople don’t come cheap. And, I doubt you’ll see a TV commercial telling you “now is the time to sell your gold.”

 

3. If you do decide to buy some gold, you need to ask the seller about the logistics and costs of selling it back. If they mail it to you, how do you return it? How much will they charge to sell it for you (what are the fees and commissions?).

 

Lastly, I offer this word of advice. If you are thinking of buying gold because you’re anxious, you are not alone. You’re the Uncertain investor I spoke about in the previous column. Let’s be honest, the world around us can be very scary at times. But perhaps, instead of reaching for gold, you should reach for a financial planner (not a notebook in which you jot down expenses, but a human financial planner)! A written, personalized, financial plan could help ease some of your fears. I have seen people become much more confident about their financial futures once they had a plan in place. Come to think of it, maybe you should put a financial plan under your pillow, instead of those gold coins!