It’s March 17 so Happy St. Patricks Day to my Irish lads out there.
I hope each one of you reading this are well and stay well in this current situation we are facing. Both the current economic climate and having been a student of investments and wealth for a long time…lead me to my topic today:
It’s fitting that it’s St.Paddy’s Day and I’m talking about gold.
Yes, gold as in the gold found at the end of the rainbow- the gold that John McClane recovered in Die Hard With A Vengeance- the gold that is talked about in length in the Bible.
Gold has been the one commodity that, regardless of the polarized controversy and debate as to how much or even if it should be included in ones financial portfolio, is not going anywhere too fast.
Regardless whether you believe the history or principles surrounding gold in the Bible or you just think it may be a reliable long-term investment, there is no arguing that gold, and I’m talking gold bullion not paper bank notes, is a staple asset to have.
Yes the stock price of gold fluctuates and often seems unstable. It may not even be on your financial radar. To many new investors, it poses these questions…What do I do with it? Where do it put it? What if I lose it? Why do I have to register it? Short of hiding it in your walls or the backyard somewhere, are bank safety deposit boxes 100% reliable?- that said, that situation makes for a really cool movie-like story to have gold hidden in your walls doesn’t it? (and for the record…sorry, I don’t!)
The above questions are quite valid and what you do with it is up to you to figure out. For first-time gold buyers there also stands the inevitable confusion as to how to go about acquiring gold bullion.
These are 4 options you can consider:
1- You can go to the local creek and pan for it.
In my town, we have a creek called Tranquille creek and on any given day in every spring and summer, you can find up to 10 different individuals or groups trying to ‘strike it rich’. Every year the creek floods like crazy so every year, there are new deposits. It also runs along a main gold vein that spans across the lake from a in-production gold mine. Fun fact…Up the Tranquille valley you can also find many fossils and geodes. I digress. (tip…you don’t have to register the gold you find though you will want to make sure it’s insured).
2- You can become a real gold miner.
You could invest in expensive mining equipment and embrace your inner Parker Schnabel and head to the Yukon to dig and wash and dig and sluice. But I wouldn’t recommend this one to most people. It’s a huge commitment financially, physically and emotionally. So unless you’ve dreamed of doing that type of thing your entire life and are willing to lose your shirt…stick to the next two options I have for you.
3- You can collect it.
You know those stores and pop-up shops that come through and buy broken bits of jewelry and watches? They do that because it’s worth something. You know Grandma’s old earrings no one wants and they are getting donated because they look dirty and worthless or even worse…getting thrown out? Keep them. Get good at identifying real vs fake gold items at garage sales and second-hand stores. See first option for insurance etc.
4- You can buy it.
Purchased bullion does have to be registered and that happens when you buy it. You can acquire it in coins, rounds or bars and it gets tracked as sort of if you have made a bank deposit/withdrawl. There are various places to buy bullion. You can check for reputable retailers online or for stores in your city. Banks will try to convince you just get gold bank notes and many people will say, ‘Oh it’s the same thing’. No, no it’s not. Figure out where to put it and buy the real stuff.
Again, whether you believe in the Bible or not, it holds the foundational financial principles modern life is built on and offers incredible knowledge on asset acquisition and diversity. I highly recommend checking out the 1926 book “The Richest Man In Babylon” by George S. Clason. Though many would claim the ‘gold’ references in this book conveniently translates as ‘money’ to appease our present time business activities, I would challenge you to really take it in for what it is and find the value of the old principles in their true form. We definitely need to tweak historical literature and make it relevant and applicable to our lives, however I always find there is timeless wisdom to gain from those who have come before us.
Since public establishments are closed today, go grab a box of Lucky Charms and try to enjoy your St. Paddy’s day solo or with your fam.