Expert: Paul Henneman - 5/21/2010

Question
Greetings Paul,

I am considering buying gold outright.  What would be the best, most cost effective way to purchase gold.  Would I keep it in a safe deposit box?
Thanks in advance for your response.

Regards,
Steve

Answer
Steve,
   Thank you for your question! Unfortunately my experience is with equties, mutual funds, ETF's, even bonds to some extent, but not commodities such as Gold.
   Some basic suggestions would be to decide if you want to actually have the gold in your possession. There are mutual funds and ETF's that you can invest in that track the value of gold. If you are looking at gold as an investment, kind of like buying a stock, this would be the least expensive and most efficient way to do it. If you are looking to actually hold the gold itself, then depending upon how much you purchase and how much security you want, you could do anything from hiding it in your home, to paying the additional expense for a safe deposit box at a local bank.
   I do wish you the best,

Sincerely,
Paul Henneman
President
ValuEngine Inc
www.ValuEngine.com