Investing In Gold: What Should You Consider?

Posted on: 14 August 2017

If you are a collector of gold, investing it is the next logical step. When deciding on which type of gold investment to make, there is a variety of options to consider. Following are some different gold investment strategies to think about:

Bullion Bars

A bullion bar is pure gold in a standard weight. It follows the market value almost precisely without any change in value, despite how the current economy is behaving at the time. The only downfall to bullion investing is possibly receiving counterfeit bars. This emphasizes the importance of purchasing your bullion bars from a verified direct distribution source, where you can often find other antiquities for sale.

Bullion Coins

Gold bullion coins are manufactured strictly for collection and investment purposes. These coins do not enter the marketplace as currency. Instead, they are collected and gain value based on their rarity. The Canadian Maple Leaf coin is one example. This coin has additional value outside of the value of the gold it is constructed from. Only so many of these coins are created, thus resulting in a higher value.

U.S. Gold Coins in Circulation

The United States circulates some gold coins as a very marketable type of gold investment. They are also high in numismatic value and are safe in any volatile economic market. These coins are sold for a premium at up to 30 percent  of their face value.

U.S. Gold Coins Uncirculated

Coins that are uncirculated were made for daily commerce but were not placed in circulation. When proven to be genuine, you should guarantee they remain in pristine shape to keep them highly marketable. They will not decline in a poor economy and are very attractive to both gold collectors and investors.

As an investor, a good strategy is to include gold in your portfolio to hedge against other losses within the market during a poor economic climate. However, much like any type of investment, investing in gold can have its disadvantages. It is important to know that gold prices are not as competitive as other investments in the economy. This can result in gold not having as much of an impact if it is the bulk of your portfolio, particularly if the economy is good. Try to avoid investing the majority of your income in gold so that you can see some growth in your investments over time. While it is ideal to have some gold, be sure to diversify with different assets to safeguard your financial future.