In all seriousness, I have about 20k cash in a bank account. Not really too educated in the stock market. I have a few questions
1. How would I go about buying gold, do i buy it and put it under my mattress or is it like a stock, and if so where do I buy it?
2. Would you recommend I take all 20K and put it in gold?
If you decide to buy gold, there are a few ways to do it. The easiest is to accumulate it in the form of Gold Bullion coins like U.S. Buffaloes, Canadian Maples, or South African Krugerrands. Alternatively, you can get it in the form of bullion bars (Credit Suisse, PAMP Suisse, and a number of other popular issues). You can usually get coins at local coin dealers.
You can also buy online from a number of locations, like Monex, Kitco, or countless other places. You will pay a premium, especially on coins. You generally pay the gold spot price, plus a percentage. The percentages on bullion coins is generally higher than on bars. Shop around at a number of dealers to minimize this commission cost.
You also have a choice about whether to have it delivered to you, or held at a secure facility. Personally, I would prefer to take possession... If the fabric of society comes apart, I would rather have it in hand than in someone else's vault. Your own safe deposit box would be a good place to store it.
As for whether or not to cash your whole savings in, that's a question only you can answer.
While everything we know about the economy and the dollar suggest that gold appears to be both a good hedge against disaster, or perhaps even good as a speculative investment, weird stuff happens, particularly if you believe that the central banks have been manipulating the gold markets.
You could end up on the wrong side of that... Now, half your dough? Maybe that's worth considering.
