People often attempt to make decisions much more difficult than they actually are, as is evident in many investors’ uncertainty over whether to invest in certified gold coins or gold bullion. A simple checklist can go a long way in helping one decide which of the two investment vehicles to choose.
How long do you plan on holding the gold? If you anticipate a holding period of anything less than 14 months then do yourself a favor and buy gold bullion. Bars are preferable to coins since they cost less, unless you foresee needing gold to buy goods and services, in which case fractional gold coins or silver coins would best suit your needs. If you don’t plan on selling your gold anytime soon, give certified gold coins serious consideration.
Are you more focused on profit or safety? No one wants to lose money, but is profit or safety more of a priority for you? Profit-seekers like bullion because of the low overhead that allows them to “flip” the investment should the gold spot price rise. Investors who want to preserve purchasing power may prefer certified coinage.
Is government confiscation of gold a concern for you? Keep in mind that burying your gold and/or buying guns failed to help gold bullion owners in 1933 since there was no forcible confiscation, just an outlawing of using gold bullion. There was no black market for gold bullion, meaning stubborn hoarders had to wait until 1974 to use the bullion they had illegally stashed. Collectible coins, known today as certified coins, were protected from confiscation and could be traded freely even when bullion possession was against the law.
Answer the three questions about your gold investing goals and more likely than not you will be able to figure out which type of gold works better for you – gold bullion or certified gold coins.
Recommended for you: Gold IRA Rollover Guide and Silver Investments.
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