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When starting to make investment on gold, the common question is “what kind of gold should you buy?” That question is always asked by those who want to starting out in the investing world as gold investors. But, most of them are disappointed when they find out that there is no single answer for that question, there are so many right answers for that question. So, to answer properly, a second question needs to be returned to you: “Why do you want to buy gold?”

If you want to just get in on the price movement of gold, so you can get by with just acquiring bullion coins. But, if you want to preserve your asset base for the long haul, and you are worried about controlling your capital, then you should look to pre-1933 European and American gold coins as well as the bullion gold coins. The reason for the pre-1933 gold coins is that the US government has, since the 1930s, viewed these older gold coins as historic pieces, rather than just plain money, so they allow much more safety as investments than straight gold bullion.

The next question is about when you should buy gold. I could be smart and tell you to buy it when you need it, but you just can’t use the same strategy and approach to buying gold that you would with stocks or even real estate investments. It isn’t a matter of timing. It’s about first of all believing whether or not you need to own gold as part of your portfolio. If the answer to that question is a firm “yes,” then what are you waiting for? Go out there and invest in gold. Then it becomes a matter of not “when” but “what.”

A related thought regarding the timing of purchasing gold has to do with waiting for the necessity of buying gold to come up. This is the same as saying that you will just wait for the house to catch fire before buying a fire extinguisher. If you wait for a crisis to occur, you will be stuck with the rest of the panicking herd, shooting up demand and dropping the supply. You’d be stuck paying higher prices than if you made your purchases based upon when you were ready.

The thing about gold, and why it is insurance for your asset protection, is that it is essentially the only main asset you will own that is not on someone else’s liability column. That means that the value of your gold is not dependent on someone else’s ability to pay (such as with bonds and in some cases stocks.). For this reason, gold is the bedrock of your wealth building.

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