Sell Your Gold for Gold Coins?
As the dollar remains weak and the stock market trades precariously on its highs, investors may indulge in bullion coins as a safe, and potentially profitable, haven. Gold coins have remained strong draws for investment portfolio fodder, especially as a hedge against inflation. Before one leaps into precious metal coinage, however, the risks need evaluating. One’s specific interests play a factor as well, either exclusively investor-oriented or strictly collector-based.
A Balanced Gold Portfolio
Gold bullion and coinage are a significant part of the heavily traded commodities market. As such, they are subject to price swings contingent upon global mining, minting, and trading activity. Those swings can be dramatic, thus coins should be a component of a balanced portfolio, rather than the lone ingredient. Like any other investment vehicle, gold coins should be steadily purchased over time (dollar cost averaging). This is to avoid going “all in” at the top and risk a painful ride down if/when prices drop.
Bullion coins trade at a given spot price (often with a seller’s premium), rather than on face value. When traded, they must adhere to generally recognized purity standards. Thus, you’re heirloom gold jewelry isn’t going to have an equal value to a Canadian Gold Maple Leaf should you choose to melt it down into coinage if its purity is below industry standard (99.9%+).
Gold Collector Coins
Gold bullion and collector-grade coins are available in a variety of offerings, with much inherent value coming under preference. Though gold coins have obvious (and subtle) stylistic nuances country-to-country, a 1 Troy Ounce gold coin is essentially equal to another 1 Troy Ounce gold coin from purely a precious metal investor’s perspective. For numismatists and collectors, design aesthetics will be a primary factor in which coins to acquire.
Arm Yourself with Information & Deal with Trusted Vendors
In addition to sundry market-related risks associated with gold bullion coin trading, there is the presence of countless unscrupulous opportunists in the marketplace, looking to exploit the unsuspecting and uninformed. Potential buyers should thoroughly research gold coin dealers as much as their coins of interest. Bargain shopping and blowout sales are not parts of the gold bullion coinage buying equation. Honesty, integrity, and the seller’s reputation are. Go with the best, and rest easy that you will get what you pay for. Gold coins are currently riding a massive wave of popularity, and global demand is outpacing supply. Therefore, whatever your buying interests are, it is imperative to do sufficient due diligence so that you can obtain the desired coins, and subsequently enjoy your purchase. In the case of precious metal coins, information is as good as gold.