October 29, 2009 - In today’s financially unstable world, many Americans have become more cautious about making investments. Federal regulators uncover new Ponzi schemes and insider trading scandals nearly every day, and hard-working individuals are wary about letting someone else manage their money. Their edginess carries over to the gold market, because there are many different investment avenues, dealerships, and products available.

The best gold bullion investments are manufactured by reputable firms and mints. Most American investors who buy gold bullion bars choose brands like Johnson-Matthey, Englehard, and Pamp-Suisse. These firms issue guarantees of purity (0.999) and serial number for their products, so liquidity and authenticity are secure. Other investors chose gold coins, like the American eagle or the Canadian Maple Leaf, as their investment vehicle The US Mint releases a select number of American Gold Eagle coins each year to exclusive gold exchanges, and household investors usually purchase their holdings from these reputable dealers. The Gold Eagle coin is especially popular because it is minted using gold mined in the United States. For investors who prefer a slightly less expensive coin, the South African Krugerrand is a consideration. Of course, most gold bullion coins will be slightly more expensive than gold bullion bars, since the coins usually carry a government issued premium. Whether a bar or coin is chosen, the best gold bullion investments are always physical gold instead of certificates of ownership or IOUs. The physical nature of a gold investment guarantees that the investment is tangible, and not just a hollow promise on a piece of paper. If second-rate “gold” investments such as these are deemed to be worthless because of non-allocation, it would most likely create a buying frenzy by panicked gold share holders. The fear of non-allocation, which means that gold shares are not backed by physical gold, is mounting; so many investors have liquidated these assets to purchase physical gold which they can store themselves. Unfortunately for investors who prefer for their “gold” investment to remain on paper and/or in a computer, the best gold investments will already be safely in the hands of their savvy owners when companies release their allocation audit findings. 

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Jonathan Monroe

Senior Staff Writer - Gold-Bullion.org