Simply by landing on this blog, it is fair to say that you have heard how well gold bullion has done since 2001. Yes, the 300%+ return over the past nine years, and the 24% performance of the yellow metal in 2009, has been talked about, written about, and blogged about to death by economists, market experts, and pundits for the last decade. Yet, even though the general consensus is that it is good to own some gold, most “experts” have avoided giving advice on what to do with your gold once you buy it. It seems to me like this is rather important, since 60-75% of investors are buying gold bullion in the current cycle for the first time (not including jewelry purchases or gold that came as part of an appliance).
There are two main schools of thought on what to do as far as possession of gold. Some individuals believe that gold bullion storage is the most appropriate way to conduct your investing, while others say that holding the gold bullion yourself is the only way to go. The truth is, both of the opinions CAN be correct, it just depends on what your goals are for your gold bullion investing.
If you are using technical trading to play the gold market, or if you plan on making a very large volume purchase that you plan to sell within a short period of time (due to the fact that you foresee a major jump within a relatively short time frame), then gold bullion storage may be the best option. Shipping can sometimes take days or weeks, it can be cumbersome (and dangerous) to hold all that gold by yourself with no long-term storage plan, and when you do plan to sell you want to complete the transaction immediately; this is impossible is you have to box, insure, and ship your gold to the dealer.
If your plan is to hold onto the gold for a longer period of time, or if you are concerned about needing your gold during a national financial emergency (namely, the collapse of the dollar), then you definitely want to take physical delivery of your metals. The best way to store gold privately is in a home fire-safe or a safety deposit box at your nearby bank. Even if the bank or the FDIC fails, your gold is safe. Stay in touch with Gold-Bullion.org to learn more about the recent slew of bank failures and how this situation could affect gold bullion prices in 2010.