subject: Gold Certificates: A Good Investment? [print this page] For the uninformed, gold certificates are certificates which represent, well, gold. They're pretty much what the dollar was back when we were using the gold standard, when the dollar correlated to some real gold sitting somewhere in the federal reserve. Not so anymore, but certificates still get the job done.
Of course, the gold standard was abolished and gold was actually outlawed now and then, and... Well... That's where inflation comes from.
So while it's not spendable, while you can't go into a gas station and say "Give me a half ounce on pump five", you do, nevertheless, have a piece of paper whose value is directly tied to the value of gold. A dollar is just a piece of paper, but the gold correlates to real gold that technically belongs to you, sitting somewhere in a safe where you don't have to worry about it.
So how do you invest in these papers? The same way you invest in gold. The exact same way...
Play it Smart
Gold has always been a safe, smart investment. It's not for people who hope to get rich quick, who hope to make a mint overnight. It's for people who know that real value takes time to build. Luckily, you don't need to pay too much attention to your gold investment, whether it's coins, bars, bricks or certificates. You can really just take it, put it somewhere safe, and ignore it til you need it.
Don't Get Greedy
Some people how to make a lot of money on metals by keeping a constant eye on the market, selling when it's hot and buying when it's cold... Okay, you CAN do this, but you'll honestly be much better off if you're patient. Gold tends to increase in value in much greater amounts over time, not over a few days time, as with stocks and so on. Just be patient and wait for some big boosts to start selling.
Be Very Patient
Remember that gold's strength is as a long term investment. If you want to get rich quick, play the lottery. If you want to be safe, sound and secure, if you want something to retire on, something to buy that dream house with, keep some money in gold. So be smart, be patient, and don't get anxious. Really, if it sounds like gold is just plain too simple... It is. It's not a high maintenance investment at all.
