As the world economy continues to struggle, more and more investors are turning to gold investing, particularly gold coin investing as a way to safeguard their wealth.
Demand for gold coins has become so great that the U.S. mint has had to halt production of gold coin bullion to allow time to build it’s supply of bullion blanks back up. Uncertainty has driven the price of gold up threefold in the past four years, and after a short lull, gold appears likely to rise higher as worry about whether the U.S. economy will continue to recover or slip into a double dip recession runs rampant among investors.
Gold coins are a great way to invest your hard-earned wealth to keep it safe and make a profit. Gold coins have the benefit of being universally recognized symbols of wealth and value, tangible and easy to keep private.
In the past, governments have seized gold bars and wafers, but left coins alone because of their historical value. The last major seizure happened in 1933 during the Great Depression. No one likes to think of another Great Depression, but if the economy tanks the government may take such an action again. That’s why to safeguard any gold investment you make, you need to get history on your side by investing in gold coins.
For starting gold investors, here’s a few gold coin investment tips:
Buy cheap – If you’re a beginning investor, the low price types of gold coins, that is gold bullion are a better investment choice because their value is tied directly to the value of the gold metal. Other coins have value tied to their age and condition, making them a more challenging investment to evaluate. It’s best to get your feet wet in gold bullion before moving on to more expensive types of gold coin investment, such as historical European gold coins.
Go long — If you’re a day trader, gold coin investment isn’t for you. Gold coins are a long-term investment intended to buy security and growth over a period of years. If you’re buying gold coins, buy them with money you’re not going to need back immediately.
Don’t get hosed on the premium — Gold coin sellers sell their coins for a premium over the value of the metal. The larger the amount of gold coins you buy, the smaller the premium percentage should be. In general, a premium of over 4-5 percent for gold bullion coins is unacceptable. Larger premiums may be acceptable for numismatic gold coins.
Buy low, sell high — This is probably the most basic piece of investment advice, but many fail to follow it. Wait to buy until the price is in decline. Once you buy, don’t panic if the price drops, wait and eventually it will climb again. Remember, gold coins are a long-term investment.
Gold coins can be a fun and exciting way to reap the benefits of gold investment so long as the investor is responsible and carefully researches before buying and selling.
