The days of instant online stock trading and financial accounts, sometimes money seems so unreal. We don’t even use checkbooks anymore and we have stopped viewing money is a tangible touchable object. That is why investing in gold coins may be a very interesting option; and excuse the pun, seem very solid
Imagine walking into a coin shop and coming out with a heavy small bag filled with coins and being able to feel the weight of it all. Some people may not really think this is an option but it is.
Central banks can create as much paper money as they want to but you cannot do that with gold. There is no magic button to press to produce more of it. That is why gold is still and will always be a trusted way to store value. You can view it as a form of insurance in your portfolio. Small gold coins are convenient to keep away as long as you know they are secure.
In this blog post, we examine the benefits and risks to buying gold coins. We will also offer advice on how to buy and safely store these coins.
Gold and other solid metals are traditional investments because gold always tends to go up when other investments decline and is a stable option for your portfolio. Gold is a buffer against inflation. You do not have to pay any capital gains taxes until you decide to sell and no one would know you have it if you want to keep it a secret. And if there is a major devaluation in currency you can use these gold coins to buy in sell. It may sound odd but it has been done before in other countries.
Buying gold coins also comes with its share of risks. You will need to make sure you store your coins in a safety deposit box and not at home because a thief could steal them. When you buy gold you are not buying stocks in a company so you do not get interest from gold coins. You may have to wait quite a while for the value to increase.
You need to buy gold from a reputable financial institution otherwise the authenticity of the coins could be in question. You don’t want gold plated or copper coins. Bullion coins are different from collector coins. Bullion coins are better to stick with unless you have experiences with collector coins which sell at a much higher premium.
However, collecting gold coins is a good idea and can be lucrative. They are rare and beautiful and there are often stores behind each coin which a collector will cherish. Bullion on comes in small discs and the gold investors want should be at least 990 parts out of 1000 gold. You pay more for premium for coins over bars because of the costs associate with production and distribution.
If you want to be safe, go for bullion but if you want something rare and beautiful, you can go for collectable coins which are more hobby oriented! Keep your coins stored in cases to avoid scratching them.
Don’t go overboard with buying gold and make sure to keep it to only 5-12% of your portfolio. Hard assets should not account for too much and the rest of your portfolio should be in growth funds, stocks, or other investments. Gold is a great option and you always want to balance risk and return. You can invest in gold without bringing it home through gold certificates or exchange traded products without worrying what to do with those actual coins that way you leverage gold’s hedge against inflation!
Make an appointment today for more information and don’t forget to comment with any questions!
Fun fact: Gold coins have been traded since the Bronze Age and collecting too is just as old as a hobby. Augustus, the Roman Emperor loved collecting ancient Greek gold coins.