Buying Gold?

I have commented before on buying gold as an inflation hedge, and why the idea is not a simple solution to inflation, as advertised. Gold prices relate primarily to the rise and fall of the dollar, rather than inflation itself.

I feel there are many other ways to protect yourself against inflation. A weaker dollar waxes and wanes cyclically. Other investments I discuss from time to time are more directly attuned to inflationary factors.

For those who have decided to buy gold, however, an option that often is not fully understood is whether to buy gold mining shares, instead of gold coins or bullion.

There is dividend income in holding shares as well as potential capital growth. Gold coins and bullion do not offer income. And you have to store and safeguard the physical assets.

However, mining company shares run into occasional production problems and potentially negative management issues. That is a negative factor.

Remember, gold can be bought without physical possession, in the form of mutual funds or exchange traded funds (ETF)s.