Buying Gold Bullion Vs. Coins: Which Is The Better Investment?
The traditional approach to investing calls for people to fill their portfolios with blue chip stocks and bonds that will steadily grow in value over the years. This philosophy is perfectly acceptable when the economy is booming and markets are stable or expanding. Under those conditions, your portfolio will likely yield a 5-8 percent annual return, leaving you with a nice nest egg for retirement. But what happens during times of economic turmoil? When the bottom drops out of the market, an entire portfolio can be wiped out in a matter of months-which is why the shrewdest investors diversify by acquiring gold. Precious metals have proven that they can maintain their value regardless of the ebbs and flows of the financial markets, making the metals market a very desirable alternative to stocks, bonds, mutual funds, and even IRAs.
When it comes to acquiring gold, investors must decide which form they would like to purchase. The two major options are bullion (metal formed into bars or coins, where the value comes from the commodity value of the metal itself) or Investment Grade Coins (coins that have been certified for their age, condition and rarity, where the value is based on the supply and demand for the coin itself, independent from its metal content). Though both forms have their advantages, the average investor who is not highly experienced in commodities trading is better off sticking to Investment Grade Coins.
Here are two reasons why:
* Less Volatility. Since Investment Grade Coins are not subject to the "spot" price of gold like bullion is, their value is much more stable. It is driven by supply and demand. Since supply is constant (no more 1848 coins are being minted, for example) and demand tends to grow over time, there is historically much less volatility in the certified coin market.
* "Perfect Timing" Not an Issue. Many investors turn to precious metals to get off the roller-coaster ride of the stock market, only to find that investing in bullion has its own cyclical ups and downs. To make money, investors have to time it right and buy when it's low and sell when it's high. With Investment Grade Coins, the market doesn't have the same peaks and valleys that the commodities market does, so investors can pursue a strategy of "acquire-and-hold" and watch the value increase over time.
Though many people may consider "coin collecting" more of a hobby than a serious financial strategy, more and more investors are realizing that getting into the Investment Grade Coin market is a viable strategy that can protect and grow assets over the long-term.
About the Author:
Stephanie Elman is an author for the United States Gold Bureau, providing collectors and investors with the knowledge and expertise for buying gold and integrating gold coins into their investments.
Ultra High Relief Gold Coins on Ebay
 |
| IRAN GOLD Coin MRShah High Relief 1 Pahlavi1329 1950 Mintage 4000 RARE DATE | |
 |
$699.00 Time Remaining: 1h 56m Buy It Now for only: $770.00 Buy It Now | Bid now |
| 4 COIN PEWTER BUTTONS w VARIETY HIGH RELIEF DESIGNS | |
 |
$0.99 Time Remaining: 10h 1m Bid now |
| 1921 P PEACE DOLLAR ALMOST UNCIRCULATED TWENTY COINS ONE YEAR TYPE HIGH RELIEF | |
 |
$2,975.00 Time Remaining: 13h 29m Buy It Now for only: $2,975.00 Buy It Now |
| 1921 High Relief Peace Dollar Higher grade KEY Date Coin | |
 |
$149.50 Time Remaining: 14h 4m Buy It Now for only: $149.50 Buy It Now |
| US Mint 2009 Ultra High Relief Double Eagle Gold Coin | |
 |
$2,989.00 Time Remaining: 14h 46m Bid now |
| Original Mint Capsule For 2009 Ultra High Relief Gold Coin UHR | |
 |
$9.95 Time Remaining: 18h 13m Buy It Now for only: $9.95 Buy It Now |
| 1901 Copper Nickel 200 Reis Brazil Very Fine Detail High Relief World Coin | |
 |
$0.99 Time Remaining: 20h 50m Bid now |
| Australian Lunar II 2012 Year of the Dragon 1oz Silver Proof High Relief Coin | |
 |
$197.27 Time Remaining: 1d 17m Buy It Now for only: $197.27 Buy It Now |
Tagged with: collecting coins • Gold coin
Like this post? Subscribe to my RSS feed and get loads more!
Leave a Reply