Gold Coins – Worth Holding?

US$20Gold-pile

QUESTION: Martin, I enjoy reading your blog and thank you for sharing all your knowledge. I have a simple question.

For someone who is not a trader, who has a net worth of $5m+, no debt and plenty of long-term income from oil royalties, does it not make sense to hold 10-15% of my liquid net worth in gold coins? I started buying gold in 1999 and have continued to accumulate for the last 14 years. Any reason not to put 10-15% of my oil income into gold coins as part of my savings plan?

Thanks again for all you do, A

ANSWER: Yes. Gold should be held in coin form rather than bars. At least coins were exempt previously. There is nothing wrong with holding gold coins. As a traders, you have to sell and move with the flow. You can hedge if your coins are a large part of your asset base. But I would not recommend buying more or averaging down. You buy when the cycle turns.