Six
Reasons Why Gold Coins Are a Great Investment
By Mike Will
In times of economic and political instability, investing
in gold becomes an attractive option for many people.
While many investors simply buy gold bars, astute collectors
have made fortunes by investing in gold coins. If you
having been thinking of adding gold to your investment
portfolio or want to know more about gold coins then
consider the six reasons, described below, why gold
coins are a great investment.
Before we get into the particular advantages of gold
coin investment is important to know about the main
kinds of gold coins that investors are buying today.
Some of the most popular coins are the American Gold
Eagle, the Australian Nugget, and the South African
Krugerrand. The Saint-Gaudens, the Liberty series,
and the Indian Head U.S. gold coins are also collected
around the world by investors and also by collectors
who look to the beauty, rarity and historical importance
of these coins.
Now let’s look at the particular advantages
that you get when you invest in gold coins.
1. You can start with a small investment – In
case you want to dip your feet in the water before
taking a plunge, you can buy small quantities of gold
coins, and build up your collection gradually according
to your capacity and interest in this form of investment.
For as little as $1000.00 you can start investing in
gold coins.
2. Gold coins have historically been a good
investment -- How well you will do with
your investment in gold coins depends on your skill
in selecting the right coins and also on market forces.
However, a study done by Collector’s Universe
showed that $1000 invested in U.S rare gold coins
in 1970 is now worth $57,977. The yield from this
particular investment is greater than would have
been achieved with investment in gold bullion or
in the U.S. stock market.
3. Collectors seek coins driving up
the prices -- The main reason why gold coins
perform so well as an investment is that their supply
is limited. This limited supply is being chased by
a demand that is growing. Collectors look for coins
that are rare and that are in mint condition or that
have never been circulated. The value of a coin is
determined by the beauty of its design, the minting
process used to produce the coin, how bright it shines,
and the wear on its surface.
4. Gold Coins are easy to sell – Liquidity
is an important factor in any investment, and gold
coins are easier to sell than gold bars. There are
no delays in the sale process and you can receive your
payment immediately.
5. You can divide your sales more easily --
If you have large gold bars, then it is all or nothing
when you are thinking of making a sale. However, if
you have a good amount of gold coins, you can easily
take an amount that you want to sell and leave the
untouched.
6. Gold Coins are safe and easy to store – Although
we occasionally hear stories of someone storing wads
of banknotes in their mattress we would not recommend
it because a bedroom can go up in flames or the banknotes
can be devalued in time. Gold coins are not affected
by these problems. They can be stored in a bank
safe-deposit box or any other location that is secure
and easy to reach and they can’t be devalued
according to the whims of some government.
So, if you have been thinking of investing in gold,
why not put some of that investment in the form of
gold coins?
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