Gold is a good choice for long-term investments. This precious metal has a history of being seen as a sought-after commodity over millennia. Although it was a symbol of luxury at first, it showed its real value during the crises. Since then, the yellow metal has gained a reputation as a global store of value.
Today, the stable value makes gold a safe investment for the future, even though the market is volatile (read here what affects the price of this precious metal). It’s an excellent hedge against inflation and deflation. It can also act as a portfolio diversifier. On top of everything, this precious metal is highly liquid and sells fast.
This precious metal and its products are a good option if you are unsure about your financial future. You can choose between different forms of investment gold. Yet, if the coins attract your attention, you need to be very careful when buying them.
If you opt for these alternative assets, you need to be aware that they are an investment, not a commodity. There are risks involved, but you will be protected from fraud and loss if you follow some guidelines.
Find Reputable Dealers
Collecting gold coins is not just a fun hobby but a serious investment decision. Unfortunately, it’s often followed by pitfalls if you don’t buy these assets from reputable sources. In addition to paying way too much for them, these transactions can be risky and even illegal.
While you may be tempted to buy gold coins that you find at the local jewelry or antique shop, it’s not the most sensible choice. Although there are many ways to determine the authenticity and purity of these goods, there is always a chance to buy fake assets at uncertified dealers. Also, these sellers don’t offer guaranteed repurchases for the gold products they sell.
So, before the purchase, be sure to check the company’s credentials and accreditations. You can find accreditations through reputable organizations such as the Better Business Bureau and the Business Consumer Alliance. Take some time to browse online reviews, too. If the gold dealers have a long history, a good track record, and a reliable website, you’re good to go.
Reputable precious metal sellers should also be members of legitimate associations. Even when the firm is a newcomer to the industry, it can still be worth a shot. But just in case, stay away from them and buy coins only from dealers with proven reputations and backgrounds.
Hallmarking and Coin Condition
Coins are characterized by two important things – hallmarking and cleanliness. The first item refers to the ‘data’ imprinted on the coin, while the second refers to the share of gold in it. Hallmarking is not uniform and can show details like purity, nominal value, mint or jewelry logo, etc.
Generally, coins have a purity of 22 carats. Don’t be fooled by the 24-carat mark – there are no coins in that purity because pure gold is not suitable for processing. So, it’s always best to read the fine print and compare the same assets from different sources. If you buy them from second-hand or individual sellers, make sure they come in good condition and with proof of authenticity.
Tips on finding a reputable dealer are listed here.
Price
Another thing to know before buying gold coins is the price. Although it’s easy to get a discount from reputable sellers, you should avoid paying low prices for gold products. Instead, it’s better to spend a little more and get all the necessary certificates and proof of safe purchase.
But neither a higher price is always a clear sign of genuine assets. Sure, rare coins are usually more expensive than common ones. But be aware of the many fly-by-night sellers whose plan is to trick investors and earn on scams.
Proof coins are more expensive than standard ones. They are eye-catching and attractive but come with a high markup. As an average investor, you don’t need to buy proof coins. You can purchase many smaller denominations in one year, which will allow you to save a lot of money.
There are two types of gold coins: numismatic and standard bullion. If you’re investing in numismatic gold, you should look for rare pieces. Having a collection is really something to be proud of. But it’s also a haven if some unwanted things happen (market crashes, economic crises, war, etc.).
Be Aware of Risks
It’s not always possible to make money on gold. It’s not the best solution for short-term gains. You won’t earn much if you buy a single coin and sell it after a month. But if you’re ready to hold these assets for a longer period, this investment is worth it. The longer you have your coins, the better.
When you decide on best gold coins to buy, it’s best to stick to smaller investments in different assets. For example, gold will serve as a hedge and protect your portfolio from failure in times of crisis when everything but the gold drops. That way, you can build a solid portfolio. Just be sure to do your research before investing.
There are risks to buying gold, but there are also benefits. Whether you’re buying for personal reasons or as a way to save money, you should consider the costs and benefits before you purchase. As with any investment, it’s important to set goals and stick to them.
