The biggest benefit of gold bullion coins is that it is considered a ‘bedrock’ investment; the price of gold doesn’t rely on other factors such as the performance of a bank or how much a company is trusted. Gold is gold; it always has some value and when the economy is wavering, it actually does better. It’s a great way to protect your money from inflation/deflation, stock market problems and currency problems. There are those who even claim that someday we may go back to the gold standard or gold currency! (Not terribly likely given the vast population of the earth and the dwindling supply of gold).
Gold bullion has some other great advantages for the savvy investor. Contemporary bullion coins trade at small, but meaningful premiums over their gold melt value, making them more valuable than just a lump of gold. Historic gold coins do too, but the contemporary ones are usually more marketable since the historic ones only appeal to certain niches. Bullion is also easy to store and provides a tangible investment-even if you don’t feel that selling your gold is a viable option at the moment you at least have something to show for your money which is psychologically empowering. Gold is a metal with strong ties to much of human history after all and certainly the lust for it and the sentimental value we ascribe to it is still strong. And finally, many of these coins are quite beautiful, making them nice to display or simply look at every so often.
Getting Started
Precious metals including gold are distinctive from other investments in that there is no point in waiting for prices to change. Certainly there are low and high points, but you can and should get into the game as soon as you decide you’re going to rather than holding off. The only time to hold off is when the desire for gold is very high; a high demand can lead to problems with supply causing premiums to shoot up which makes it harder to get into the game.
Otherwise, buy when you want it and need it because investing here is all about diversifying and protecting your portfolio, not necessarily getting wealthy (though you may well do that as well!) Bottom line: there’s no point in waiting when you could own some gold bullion coins right now. And you can also start buying and start collecting at the same time; there’s no need to buy lots of coins right away when you can buy a few at a time.
How Much Should You Invest in Gold?
This depends on your comfort level. Generally speaking, between 10% and 30% is best; you don’t want to overdo it on the gold investing because it is primarily a long term, protective investment over a money maker, but you don’t want to invest too little or it’s pointless. It’s really up to you and you can always talk to your financial advisor about your options.
Gold bullion coins are of course only one part of the precious metal investing plan; you may also choose to invest in silver coins for example or do a combination of investing and collecting. In these times where the economy is still very shaky, the old methods of investing stocks is less popular than it once was and physical objects to invest are a safer and more tempting way to go.
You may not get filthy rich on your gold coin collection, but you’ll also never have to worry about losing everything you have because of it. If all of this sounds interesting to you, feel free to look around our web site and see the many different gold coins and silver coins we have to offer the savvy investor. Enjoy and good luck!
Great post Over in New York, the difference between bullish and bearish contracts held by gold futures and options traders on the Comex – known as the speculative net long position – fell 18.5% in the week ended last Tuesday, according to the weekly Commitments of Traders report published Friday by the Commodity Futures Trading Commission.
ReplyDeleteRare Gold Coins