Research for my thrillers usually takes some wild and crazy turns. Every book is sparked by an idea or an event and then, after a while, it can grow into a great story. Such was the case when one of my friends told me at lunch a couple of years ago that she was investing in gold. “Really?” I said. “Tell me more!” And the more she told me, the more interesting things became….
“Gold’s baseline, essential quality is its role as the only primary asset that is not someone else’s liability.”
-Michael J. Kosares, founder and executive director of USAGOLD
Sure, I see those ads on TV about “investing” in gold. But when I think of investments, I think of stocks and bonds, real estate, and other abstract means of squirreling away money so it can increase in value. You, too?
Well, it turns out, lots of folks have not been lured to bitcoins and paper. Some have not overlooked the ever-lustrous gold. Including criminals. Who knew?
So here’s a few things I learned — and what I did with this research when I was writing Deep Cover Jack.
It may seem superficial, but in fact, it is gold’s timeless beauty that gives it a timeless value. Gold is different from other investments because its value is in its mere existence. Gold is recognized as an asset by major governments all over the world.
And it’s not hard to understand why. In addition to its beauty, gold has the rarity factor going for it. If all the gold ever mined in the world were to be packed into one box, the box would only be about 60 feet (or 20 yards, or 18 meters) on each side.
Imagine if this building were as long and wide as it is tall, and if it was packed full of shiny financial stability you could actually touch. Now imagine owning a small portion of the contents. That’s what happens when people invest in gold.
Gold coins or gold bars diversify an investment portfolio because gold can move independently of stocks and bonds. When other investments decline, the value of gold tends to go up.
“No matter what happens in this country, with the dollar, with the stock and bond markets, the gold owner will find a friend in the yellow metal — something to rely upon when the chips are down. In gold, investors will find a vehicle to protect their wealth. Gold is bedrock.”
–Michael J. Kosares
There are a few different ways to go. Precious metals dealers offer American Eagle and Canadian Maple Leaf gold coins with high purity. The U.S. Mint even guarantees the American Eagle’s purity and gold content. Eagles are a popular choice too because they can be included in an IRA.
U.S. gold coins come in four different denominations.
The downsides of investing in gold coins? You typically need to pay cash for them, you don’t get dividends on them, and there’s always the chance you could lose them or they could be stolen. As a thriller author, this is the part that gets my mind racing! Of course, I don’t wish theft upon anyone. I always root for the good guy, but it’s the bad guy who makes the story interesting 🙂
Gold bars are also an option for investment, but they are more expensive, and it’s more complicated to sell them.
Would you be surprised to know that the United States is the third largest consumer of gold? First and second are China and India. In fact, 34% of American investors say that gold is a better investment than stocks, bonds, real estate, and bank savings.
If you want to find out how the topic of investing in gold coins and gold bars plays into my thriller Deep Cover Jack, due out September 1 and 2, 2016, you can go ahead and pre-order the book from your favorite retailer below: