Tags: Tips | Buy | Physical | Gold

WSJ: Tips on How to Buy Physical Gold

By Dan Weil   |   Tuesday, 06 Dec 2011 08:25 AM

Many financial advisers recommend that you devote a small portion of your investment portfolio to gold. And while it’s easy to stake a paper claim in the metal through exchange-traded-funds, some investors prefer the real thing.

"If you own the physical gold, you can look at it and go, 'Well, I can always buy a can of something with this,'" David Ader of CRT Capital Group tells The Wall Street Journal.

So how should you go about buying physical gold?

(Associated Press photo)
First, decide if you want gold purely as an investment or also as a collectible, The Journal says. If it’s the latter, you’ll want gold coins. But they’re generally more expensive than the plain metal.

Second, stay away from gold dealers that advertise on television or radio, Donald Dempsey, a financial planner in Williston, Vt., tells The Journal.

"As a general statement, with all the ones you hear advertised on talk shows, you pay an extra premium," he says.

Instead, he recommends consulting with a financial planner. In addition, the World Gold Council lists dealers on its website.

If you want to avoid the hassles of buying physical gold, consider gold mining stocks, which are trading at their cheapest level in at least nine years even while the companies’ profits are expected to rise almost 100 percent this year.

“When you look back in history, you will say this was a buying opportunity,” John Wong of CQS Group tells Bloomberg.

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