Thursday, May 25, 2006

Buying Physical Gold

Recommendations from Larry Edelson, Editor, Real Wealth Report

Consider These Core Gold Investments
Gold Bullion
One convenient vehicle is 1- and 10-ounce gold ingots. For larger purchases, think about 32.15-ounce kilo bars.

What about American Eagles, Canadian Maple Leafs, etc.?
No, because the premium you pay for coins could cost you the equivalent of several more ounces of gold bars over time.

One other piece of advice: Pick a dependable, trustworthy dealer. Here are some dealers I like:
American Century Brokerage (800-826-8323)
Dillon Gage (800-375-4653)
Jefferson Coin and Bullion (800-593-2585)
Rare Coins of New Hampshire (800-225-7264)

Gold Funds
Consider Scudder Gold & Precious Metals (SGLDX)

Tocqueville Gold (TGLDX)

American Century Global Gold Fund (BGEIX): This no-load fund has a total expense ratio of just 0.67% (less than half the category average). Its portfolio is stuffed with gold companies, but many of them produce silver as well.

And if you want a broader stake in the resources market, consider this fund …
U.S. Global Investors Global Resources Fund (PSPFX): It is consistently one of the top-performing funds in its category, and has the flexibility to switch from energy to base metals to precious metals — whatever it thinks is hot. PSPFX gets four stars from Morningstar, has a total expense ratio of 1.3% (lower than the category average), and some of the sharpest management in the business. Given the recent pullback in natural resources, this fund is a bargain!

No comments: