Tags: Gold | Meltdown | economic | Protection

USA Today: Own Physical Gold as Meltdown Protection

By    |   Thursday, 08 Dec 2011 02:35 PM

Experts commonly recommend owning gold as a hedge against economic collapse. But you have to own physical gold, not shares in a gold ETF, to protect yourself in an economic disintegration, author and financial markets reporter Matt Krantz advises.

With ongoing news of the possible unraveling of the euro zone which financial experts say would cause a financial crisis and worldwide recession, you can't blame people for predicting an economic collapse, Krantz writes in his column for USA Today, although he's not in the doomsayer camp himself.

Investors who believe an economic Armageddon is at hand should avoid assets stored on paper, especially paper money, and hold tangible assets like gold as well as silver, jewels and other precious commodities.
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But owning gold ETF shares won't help you if the economic order does crumble.

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(Associated Press photo)
As Krantz says, you can't use your ETF shares to buy groceries. Instead, get the actual metal if you see gold as the ultimate hedge, he advises.

Holding a valuable physical asset like gold does pose security issues, he notes.

"But if you want to gird for a complete meltdown and follow the directives of the most pessimistic prognosticators, you might as well do it right."

Gold bugs have down well so far this year, Krantz notes. Shares of SPDR Gold Trust are up 20 percent this year compared to the S&P 500 that was up just 0.07 percent at the time of his writing.

But don't make the common investment mistake of assuming an investment will continue increasing just because has been, he warns.

Financial expert Michael Noonan strongly advises owning physical gold and silver. Customers, like MF Global customers, might not get their investments back when institutions go bankrupt, he warns in an article for Inside Futures.

"Buy and hold it now while it is available at current prices," writes Noonan, a former analyst and money manager. "It is a far safer way to hold an asset than fiat paper and deposits that at perpetually at risk."

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Experts commonly recommend owning gold as a hedge against economic collapse. But you have to own physical gold, not shares in a gold ETF, to protect yourself in an economic disintegration, author and financial markets reporter Matt Krantz advises. With ongoing news of the...
Gold,Meltdown,economic,Protection
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2011-35-08
Thursday, 08 Dec 2011 02:35 PM
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