Krugerrand Gold Coins – 1 oz. Rounds Or Paper Gold? Let’s take a closer look at the reasons to own gold in the context of answering other common questions. Some people know enough to know that precious metals in particular, and commodities and resources in general, are in secular bull markets. Without knowing much at all about how to buy and sell bullion, these folks can easily play the precious metals market. They may not even know where to find Krugerrand gold coins, but they can buy a gold ETF in their online brokerage account. The problem with gold ETF funds is that they are a paper proxy for the real thing. It’s not really contemplated that you would ever take physical delivery of gold through an ETF. The minimum delivery quantity is prohibitive and it’s easier to just buy bullion somewhere else. Plus, if there is ever an issue with there being insufficient bullion in reserve to fortify the outstanding shares of the ETF, you’ve placed yourself at unnecessary risk. Ironically, purchasing anything other than physical metal violates the very principle prompting the surge in gold’s value. Many people are seeking refuge in gold bullion as a real, hard asset. They want a valid store of value in a “currency†that is recognized worldwide. Right now, the Fed is so busy printing funny money that we are losing purchasing power, even as the price of the necessities of life goes up. Gold is not only a form of true wealth, a veritable standard of value, but also a hedge against inflation. And that’s on top of the fact that it’s also been a great investment for the last decade. Krugerrand Gold Coins And How Much Gold Is Really Enough? Opinions vary widely about what proportion of you financial assets should be in gold. Note that I refer to financial assets, because I don’t limit the discussion to your “portfolio.†In fact, one of the best places to own gold is outside of your portfolio. Indeed, holding cash, particularly U.S. Dollars, is a losing proposition. If nothing else, aside from the need for immediate liquidity, I would keep my “savings†in Krugerrand gold coins. Beyond that, expose yourself to gold to the extent you’re comfortable, leaving room to speculate for superior returns with mining stocks. It seems hard to beat gold. It was one-third of the gifts taken to Jesus. It’s been a symbol of wealth since the dawn of time. Why Krugerrand Gold Coins? Krugerrand gold coins are the most widely circulated gold bullion round in the world. The South African Krugerrand tends to carry less premium than the Canadian Maple Leaf or the American Gold Eagle. As a result, you can buy these coins cheaper, because you’re paying less above the then-current spot price of gold. The theory is that you will get less when you sell, so the discount on the front end may be moot. However, at present I’m most concerned with amassing as much metal as possible, not contemplating potential scenarios down the road. Having widely recognized one-ounce rounds familiar to people all over the world, such as Krugerrand gold coins, is appealing.