Is Buying Gold Coins as Investment a Good Plan?

Do you want to buy gold coins for hobby or for investing? In this digital age, where people want everything to be instant like instant coffee, or instant noodles, even financial trading and stock trading is starting to go online. Sometimes even money is almost make-believe.

Bank passbook is no longer that important, and paper money is sometimes irrelevant in any transactions because of online banking. Money is not as tangible as it used to be. That is why there is something more satisfying or substantial about spending your cash investing or buying gold coins for sale.

There is nothing like going coinage shopping in a shop, with a small-but-heavy bag full of coins, and going home with satisfaction in your face. Some people may look at buying coinages a total waste of money or crazy, but the question is, “Is it that crazy?”

Expensive, heavy metals have always been a traditional investment plan for a lot of people. Here are the reasons why precious heavy metals are a good investment for the future.

Precious metals prices always go up when every investment goes down. It provides stability to your growing portfolio. It is like a fortification against inflation. You do not have to pay any capital gains unless you sell it. Nobody has to know you have gold if you value your privacy.

In the case of a financial crisis like currency devaluation, you can use precious metals like silver and especially gold to buy and sell. It may sound a little bit crazy, but it happens in other countries, especially countries with an unstable economy.

Disadvantages in buying coins

Just like any investments, it has its disadvantages. If you are not careful, people will steal your investment without hesitation. It is one of the most valuable metal in the world from electronic items, jewelry, to house furniture and kitchen utensils.

Even the food industry is starting to use edible gold as a primary ingredient in making their food fancy (and a lot more expensive). If you are not careful with your investment, people will take advantage of you. Not like bonds and stocks, buying gold is not an investment to make a company grow. You will not have interest or dividends from actual gold. You need to hold on to your investment if you want to get more out of your investment since prices are continuously rising.

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Buying and keeping your coins

If you decided to buy coins, you need to buy it from a known and reputable financial institution or dealer. You should not buy from listing sites like Craigslist or a fly-by-night “dealers.” If you buy it from people that you did not know or from a company that doesn’t have a good reputation, in short, you don’t know whether they are legit or not.

You need for experts to verify the authenticity of the coins that you bought. Gold-plated lead coins are all over the market because of the value of real gold. People want to take advantage of it since it is in demand and they want easy money.

United States gold coins come in one-tenth, one-quarter, one-half, and one-ounce denomination. The dealer makes the profit by asking for a small fee as a “premium” over the price per ounce of the gold coinages. If you buy less than an ounce of coinages, you will pay a higher premium, and vice versa.

You need to purchase bullion coinages like Canadian Maple Leaf, American Eagle, or the South African Krugerrand. Numismatic or collector’s coinages are a different game compared to bullion coins. Collector coin’s prices vary depending on various factors. If you don’t know anything about Numismatic coins, stick with the bullion coinages.

A lot of investors want the majority of their investments to be in funds, other investments or stocks. That is an excellent way to get a balance of returns and risks. You can also buy coinages using your Individual Retirement Arrangement or your IRA. The problem with this is you can’t take the coins home.

The Individual Retirement Arrangement administrator will keep them in their vault for you. Coinages should meet all the standards when it comes to purity to qualify as Individual Retirement Arrangement investments.