Regardless of the market conditions, or the country, or even the political climate, buying gold coins is a good investment. Various types of coins have proven to hold their value and provide a hefty return for their owners over a long term holding period.
Reason for Value
Rare gold coins are like real estate; there is only so much available. Since the number of gold coins is not going to increase their value is likely to continue increasing over time.
Along with their scarcity there exist a healthy number of collectors that are continually searching out for a good price on select coins. In addition, coins are rather easy to store and transport.
Types of coins
Coins are usually available in one of two ways, numismatic or bullion. Numismatic coins are valued based on their historical significance and their appeal to collectors. Bullion coins normally have a price that is extremely close to the current bullion value.
Convenience of coins
Because coins are fairly easy to transport and store, they are favored over other gold forms such as jewelry or gold bars. The price of jewelry gold is fickle and dependent upon a lot of criteria. Gold bars are rather large and unyielding making them more difficult to handle. Krugerrands, on the other hand, are one of the most popular coins still available in the marketplace.
Advantage over Gold certificates
Some people prefer to invest in gold certificates. The certificates outline ownership to a specific amount of gold. However, it is not the same thing as the actual gold. The old expression “A bird in the hand is worth more than two in the bush” comes to mind.
There is just something more powerful about holding a handful of Krugerrands compared to holding a sheet of paper that entitles the owner to so many ounces of gold. The possession and ownership of the gold coins lends peace of mind and a sense of stability to the investor.
At the same time the certificates can only increase in value based on the public’s perception of the institution that offered them. One bad transaction or a little negative publicity can quickly turn a highly valuable portfolio of gold certificates into worthless pieces of rubbish. The same cannot be said of a stock pile of coins.
The basic steps to actually buy gold coins are straight forward.
- Research the various coins and gain an understanding to how they are valued.
Determine your storage options. You can store them at home but it may be costly to invest in a sufficient storage system. Some gold dealers offer an insured storage system to accommodate buyers.
- Compare prices. There are many different ways to purchase gold coins. Some people prefer to deal with specific collectors. There are also online companies that are using the internet to make the process much easier for all involved. And there are investment firms that specialize in buying and selling of gold.