Going from collecting gold to investing in it may seem like a fairly straightforward transition. However, there are a multitude of options to choose from, each with their own set of benefits. The biggest consideration when choosing a type of gold to invest in is its future value and its tendency to fluctuate over time. The following are some gold investment options to consider:
Gold Bullion Bars
This is a pure bar of gold and closely follows the market value without changing in value, no matter how volatile the economy becomes. The risk in investing in bullion is the possibility of getting bars that are counterfeit. Only purchase bullion from a direct bullion distributor.
Gold Bullion Coins
These are coins that are manufactured primarily for investment trade. They are not intended to be used as currency. An example of a gold bullion coin includes the Canadian Maple Leaf. This is a very marketable investment and is considered safe from economic downturn.
United States Circulated Gold Coins
United States gold coins that were manufactured before 1933 are a very highly marketable form of gold investment. These coins were in circulation and are considered highly valuable. They are high in collector value, also known as numismatic value, and are very unlikely to decline in a down market. They are typically purchased and sold at a premium rate of 20 to 30 percent over their face value.
United States Uncirculated Coins
Uncirculated coins manufactured before 1933 were created for use in commerce but were never circulated. These coins have been authenticated to ensure they are in mint condition and are highly marketable due to their numismatic value. They are unlikely to decline in a volatile economy. These coins are very attractive to both coin collectors and gold investors.
International coins minted for commerce were intended to circulate, but they can also be used as an investment. These include coins such as the French Franc and the Mexican Peso. They are a very marketable investment, but have very little numismatic value.
Like all investment options, collecting gold is not without its risks. Many investors choose to use gold as a hedge against their other investments in the event of an economic downturn. However, gold prices are not competitive with a good economy, which can render gold a non-factor in your portfolio. If you have only gold as an investment, you will likely be in trouble as long as the market is healthy. This is why it is so important not to invest all of your money in gold. Instead, diversify with other assets to ensure you have a strong portfolio.
To learn more, contact a company like Coins Plus.