This is a crazy world here in 2010 and it is extremely difficult to know what to do with your money. Uncertainty is everywhere from terrorism to company bankruptcies to out of control government spending like never before. If you are lucky enough to have money saved, what should you be doing with it with interest rates so low and the world in such chaos.

The current cost of gold remains over $1,000 and it is a bit scary buying at this level but if you do decide to buy here, what are your options and what are the differences?

Buying gold coins or bars is the best way to buy gold if you want to actually own it. Of course, if you do buy it this way, you then have the problem of where to store it and how to protect it. I know someone who is buying gold and burying it in their back yard. Others keep it in safe in deposit boxes and other such places that put it under lock and key. Wherever and however you decide to store it, you are faced with that additional burden that can be a big problem if you own a lot.

For years, many people have been content to invest in gold by buying stocks of companies that mine it. If the price of gold goes up, usually so do the prices of these gold company stocks. During the big stock market meltdown a couple years ago for instance, most gold stocks performed much better than most other stocks that were in different businesses.

Right now though, it seems like a more shaky time than ever with the economy and our government as well as big businesses piling up the debt. If things continue to deteriorate and/or there is a successful terrorist attack, what will that do to our way of life? Will owning gold stocks be just as good if this happens as owning the actual gold itself?

When you invest in stocks, all you really have is a piece of paper to show for it. Others may argue that point but in my opinion all you have is paper. If things with the economy get really bad, won't all companies suffer including companies that mine gold? Even though they may be in an industry that is doing well, won't the overall crumbling economy impact their ability to do business? Won't it be harder for them to get loans and rely on contractors? It seems that if things get really bad, you might want to own real gold as opposed to just a promise on paper.

I think that there is enough uncertainty and mismanagement of our countries finances that owning real gold bars and coins is the way to go rather than buying gold stocks. If we do climb our way out of this debacle it probably won't matter but if things continue to deteriorate, owning real gold is what I would feel most comfortable with. What do you think?

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