Daily Precious Metal Update

December 16, 2009 – A surprising number of gold brokers utilize sneaky, snaky, smoke-and-mirror tactics to “help” their clients. This could be a great way for the broker to pad his or her wallet, but the harm that is done to a company’s Better Business Bureau reputation is readily available information to US consumers. Our dollar’s slide against a basket of other major currencies has prompted a large percentage of US investors to seek more secure ways to store and grow their wealth, and American precious metals have been one of the most popular ways to do this since 2001.

While the gold spot price has risen every year since 2001, and recently set a record per-ounce value of $1227, not every gold-“based” American precious metals investment is a good idea for security-oriented investors.

Gold derivatives, such as gold stocks and exchange traded funds (ETFs), rarely offer gold that is specifically allocated to you, so you could find yourself unable to take delivery of physical gold that you own on paper, should another national financial emergency “emerge”. Additionally, impending audits of companies who issue these certificates could reveal that they own an insufficient amount of gold, which would invariably reduce the worth of these shares immediately and dramatically.

Some investors have opted to become shareholders in gold mining companies, because some of these companies have had some profitable quarters recently. However, shares of these companies do not track the gold spot price that is listed by the COMEX, which is what most investors are familiar with. Labor problems, operation issues, and shortfalls in production could hinder mining companies from producing ore or dividends.

By buying American precious metals and taking physically delivery of those hard assets, you can gain peace of mind and fortify a vulnerable, undiversified portfolio during these belt-tightening times. Contact PreciousMetal.org or register below for the 2010 Insider’s Guide to American Precious Metals. 

Daily Updates Archive

Danny Burns

Senior Staff Writer - Precious-Metal.org