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Guide to Gold Coins and Bullion Investment

Gold coins and bullion have been the most popular investment options for families from the wealthy and reasonably rich to ordinary people looking to park some of their hard earned money after spending on essentials. If you want to buy gold bullion for investment option, primary concern is the type of bullion you are going to purchase. Gold coins are tailor made options for large investors. Bullion bars have more flexibility and fits to the basket of all types of investors. You can even invest in gold stocks and equities. These are not the investment in tangible gold but investment in gold mining companies. Along with, purity of the gold should also be given the first priority.

Manage Your Expectations

Gold has been very good to some investors but that did not happen overnight. Yes, sometimes gold has galloped ahead and made enormous gains in a single day. However, many people who bought it at $1,000 per ounce had to hold on when it receded for a while and then marched ahead again. You have to be in gold for the long term. That is really the purpose of these investments anyway. You are hedging against inflation and preserving your wealth for tomorrow.

You also need to understand that you will automatically start out behind on your investment when you invest in gold coins. When you buy stocks, you will pay an almost negligible fee to a broker. However, when you buy gold bullion, you will pay additional costs for every package. There may be shipping costs as well. Remember, gold is heavy. Therefore, as soon as you buy gold, even if the price stays steady, you will have taken a slight loss. That is okay because you are in this for the long haul and are waiting for the value to surge ahead again.

Diversify Even Within Gold Investments

You hear about diversifying your portfolio from day one but some people do not apply this advice adequately. This strategy should be applied at even the most minuscule level. Do not think that you are sufficiently diversified just because gold coins and bullion make up only a small portion of your total investment holdings. Your holdings in gold should be broken up into smaller pieces as well.

While gold is more or less fungible, there is a numismatic value to be considered in the coins. For example, many people eschew the American Gold Eagle because it is not 24 karat gold. They buy the Canadian Maple Leaf instead. The best route would be to buy some of both. The Canadian coins are extremely pure and treasured for that reason. However, their lack of other metals leaves them very vulnerable to wear and scratches that will render them valuable only for their weight in gold. American coins are durable and, in the long run, may acquire an additional numismatic value.

The same can be said for some other countries, such as China and Australia, which also make extremely pure gold coins but alter their designs from year to year. Little details like that can add value at no cost to you. It is a good idea to expose yourself to all these possibilities by purchasing a wide variety of gold bullion.

Buy Only From the Best

Do not get starry-eyed the next time that you see an ad on television or on the Internet about buying a new gold coin. There are so-called mints out there that sell some pretty looking coins for unbelievably low prices. The reason that they can sell the coins for so little is that they are only gold-plated or have other defects.

You should only buy gold from national mints. These coins are guaranteed by the governments behind these mints and backed by their support. Many of them are legal tender in the countries in which they are produced. You can count on these coins selling for at least their bullion weight when you decide to liquidate some or all of your holdings. Owners of coins from some of the other gold coin mints will be surprised to find out that they are not as wealthy as they think they are when they go to sell these investments.

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