Purchasting Gold to Help Protect Personal Wealth

I've been investing in stocks for over fifty years. In 1969, I wrote a book that was published by Investor's Press entitled A Beginner's Guide to Successful Investing in the Stock Market. Over the years, I never thought it might be advisable to purchase gold. The dollar seemed strong; the stock market seemed invulnerable.

Today, the economy is not what it was. The value of the dollar has shriveled to a shadow of what it used to be. The stock market seems afflicted with malaise. I thought a small stake in gold might help protect the modest wealth I had accumulated by investing in the stock market.

I knew very little about purchasing gold. I responded to an advertisement from a seller of gold and talked to a salesman who spoke so fast I didn't understand anything he said. I dismissed all thoughts of gold for a year. But the notion lingered and there came a day when I decided to take the plunge.

This time I contacted my regular broker. I asked some questions and, this time, received answers that I could understand. Buying gold is not, at all, like buying stock. One has to decide whether to buy the actual metal or coins. The purchase is not instantaneous as is stock. Further, It's far more expensive. The whole thing seemed so complex that, for a few moments, I thought of aborting the purchase.

However, I had resolved that today was the day! I decided to buy American Eagle coins instead of bullion. These were to be stored with a company that the representative recommended. I accepted the 2-1/2% commission though I felt it was exorbitant. Later in the day I learned that my order for ten coins (ten ounces of gold) had been purchased at a cost of about $1,500 per ounce.

Now, I felt, with my owning gold, I could get a feel for what it means to use gold as a method to help protect savings. I could learn first hand how the price of gold fluctuates as stock prices move up and down. I could evaluate whether I had made a wise choice in purchasing gold.

This happened about a month ago. My investment in gold has gone down about ten percent, but I'm not dismayed. I'm used to investments going down, but am convinced that, over the long pull, my small commitment to gold will turn out well.