If you’re looking to buy gold coins in order to put your investing dollars to work, then you may be confused about how to get into the gold coin investing game or whether gold coin investing is for you. Before you make your final decision to buy gold coins, make sure that you understand the strengths and weaknesses of this unique investment vehicle.
Like any investment decision, whether or not you should buy gold coins or gold bullion is a decision that you should make with a professional financial adviser. However, it doesn’t hurt to understand the basics of gold coin investing so that you can make a more educated decision.
One of the chief motivators of people that buy gold coins is that gold is a relatively safe and secure investment that many believe is set to increase in value in the future. In general, as the value of paper money fall, the price of gold goes up. In the last decade or so, the value of government-produced money has dropped dramatically. In response, the price of gold has steadily increased, reaching the all-time high you see today. Because gold coins are made predominantly of pure gold, they are a physical form of this valuable precious metal that you can store at home.
However, you may decide to buy gold coins because they double at a collector’s item. For example, the $20 Golden Eagle coin minted by the US mint, has a collector’s value that transcends it’s worth as a piece of gold. Some people enjoy the fact that their single investment has two completely different values packed into one. However, ensure that when you buy rare gold coins that you are 100% certain that the coin is authentic.
Should You Buy Gold Coins Online?
For convenience and price-comparison purposes, you can’t beat buying gold coins online. However, there are a few drawbacks when it comes to buying gold coins online to keep in mind before you pull the trigger. First, it’s important to choose a reputable gold dealer. While most gold dealers are fair and honest, there are a few less than reputable dealers online that may take your money and run. You can easily avoid this situation by calling and talking to the dealer before your purchase. That way, you can confirm that they are who they say they are. It also makes sense to buy gold coins from domestic dealers. Statistics from the Federal Trade Commission show that a disproportionate amount of internet-related crimes happen from international transactions.
However, the advantages of buying gold coins largely outweigh the negatives. Considering the fact that those that buy gold coins tend to get a positive return on their investment over the long-term, it does make sense to buy gold coins and watch their prices rise over the course of the next months and years. And if governments continue to print cash at their current rate, you’ll be glad that you put your money into gold coins instead of a savings account. All things considered, most experts recommend that you buy gold coins now before prices rise any further.