Glenn Beck is clearly not the only person trumpeting gold right now. That's why it's near record-high prices.
And while there are many ways to invest in gold through exchange-traded funds, mutual funds and mining companies (read "The new golden rule: Invest in gold" for examples), for some, only the actual metal will do.
But if it's security you're looking for, don't start cashing out your 401k's, and do keep gold to no more than 10% of your portfolio, say most experts, although dealers will suggest a higher percentage.
In all cases, watch out for companies pitching high-priced collector coins on the basis that the government won't confiscate them, advisers say.
Goldline International, for example, is quick to cite Franklin D. Roosevelt's Depression-era order to turn in privately owned gold, an order that excluded rare coins. The company specializes in collector coins, which it says could not be confiscated. The coins, though, have a 30% to 35% "spread."
Consider the actual weight of the gold, and the markup can be as high as 200% above the melt value of the coin, according to an investigation by the office of Rep. Anthony Weiner, D-N.Y.
What should you buy?
"It's a wonderful hobby if you spend your weekends going to coin shows and spend evenings leafing through coin books. You can make good money if you know what you're doing," says Bill Haynes, the president of CMI Gold & Silver, a Phoenix precious-metals dealer. "But if you're simply looking for gold as a hedge against inflation, numismatic coins are probably the wrong way to do it."He suggests the American Gold Eagle, minted in West Point, N.Y., daily and sold at a 5% to 8% spread. The coins contain an ounce of gold.
And don't let the threat of confiscation keep you up nights, says Joe Magyer, a senior analyst with The Motley Fool. "Without the dollar being pegged to gold, I can't fathom a reason that the government would try and confiscate people's gold," he says. "That's totally ridiculous. I could probably think of a hundred different ways in the next two minutes that the government would fundraise."
As a hedge against inflation, Magyer favors commodities that have industrial uses. (Read "5 investments brighter than gold.")
In addition, like many analysts, he believes that over the long term, even a battered stock market will come out ahead.
Continued: Downturn on the horizon?