Have you ever tried to buy gold coins for investment? Today, the days are of online financial accounts and stock trading and therefore, money seems to be just a fantasy. Nowadays, money is not used as a tangible object as everything has become cashless. This is the reason why buying gold coins is something very solid and satisfying about investment. Some of the people might appear to be suspicious when they buy gold coins in today’s era but it is a little case of craziness. Therefore, you must check out the advantages and disadvantages of purchasing gold coins as an investment.
Advantages of Purchasing Gold Coins
Other hard metals and gold have always been a valued part of traditional investment plans. Do you know why? See below.
- Gold acts as a defensive wall against inflation.
- Gold usually moves up when other investments fall which offers a stabilizing impact on your portfolio.
- Until the moment you sell, you do not need to pay capital gains tax.
- Gold or silver can be used for trade if you have the worst financial scenarios like massive currency devaluation.
- Nobody wants to know that you have gold coins unlike the case of money.
Disadvantages of Purchasing Gold Coins
Like advantages, there are even some disadvantages to buy gold coins.
- There is a chance of theft of your gold if you are not careful about it.
- In contrast to stocks and bonds, a gold purchase cannot be considered as an investment for company growth. The fact is you would not get interest or dividends from tangible gold.
- You might need to wait for the raise of gold value.
Tips to Purchase and Keep Gold Coins Safe
If you have decided to buy gold coins, it is better to purchase it from a reputed financial institution or dealer. There is no smartness in buying gold coins from individuals which you are not sure of. Hence, it is recommended to first obtain the gold coins’ authenticity verified. US gold coins usually come in the denominations of one, one-half, one-quarter, and one-tenth ounce. When one buy gold coins, they have to pay a “premium” over the price per ounce from which the dealer makes a profit. You might even need to pay a higher premium if you purchase gold coins less than one ounce each. Generally, you should purchase bullion coins like the Canadian Gold Maple Leaf, South African Krugerrand, or American Gold Eagle.
Other Methods to Make Gold Coins Investment
Even you can purchase gold coins with your IRA (Individual Retirement Arrangement) either the fact that you cannot be able to take these coins to the home. Your gold coins will be kept in a safe locker for you by IRA administrator. Gold coins must essentially meet purity standards to certify as IRA investments. Without bringing any gold coins home, you can actually invest in gold. You can avail the benefits of gold’s hedge against inflation by buying gold certificates, gold mining stock, or exchange-traded products and without worrying about where to store them.