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Gold Buyer

Why Investing in Gold Coins Can Be a Good Financial Decision

From gold stocks and ETFs (Exchange-Traded Funds) to gold bars, people today have several options when investing in gold. But what is the exact purpose of buying gold coins? And why should you even bother investing in them?  No doubt, these questions have divided modern investors into two groups. While one school of thought believes that gold coins are mere tokens that no longer hold the monetary values of the past, the other school is of the opinion that they are precious assets that play an important role in a modern investor’s portfolio.

When you buy precious coins, you invest in a type of asset that’s as old as civilization itself. In some families, these coins are passed down from one generation to the other. Physical precious metals are a means of passing tangible wealth onto next generations. With their intrinsic value and inflation hedge, gold coins are definitely worth your investment. In this blog post, we shall focus on the advantages of buying gold coins and how they’ll help you make profit in the long run.

6 Reasons Why Investing in Gold Coins Is a Good Idea

  1. Gold Coins Are Tangible Assets

When you buy gold coins, you can hold them in your hand. It’s something that you can’t do with other types of investment. They can’t be destroyed by water, fire or by any other means. Unlike your bank accounts, brokerage accounts or credit cards, gold coins can’t be used by hackers. In today’s world, it’s good to have some of your assets in the physical form. If the internet doesn’t work or you have trouble accessing your online wallets, those coins could be your lifesaver.

  1. No Counterparty Risk

Unlike other forms of investment, you don’t need a paper contract to state its authenticity. There’s no third-party involvement for a contractual obligation. The reason behind this is that, gold is the only financial asset that’s not simultaneously someone else’s liability. This makes gold a powerful tool to have in your portfolio when the economic situation starts going down in your country. It also means that the precious metal won’t ever lose its value as this has never happened in the history of the world. Your gold coins will never lose their value, no matter what.

  1. Gold Is Portable and Liquid

Gold is liquid, which means you can carry it along with you anywhere you go. There are several banks, bullion dealers and pawn shops that offer instant cash for gold after evaluating your precious items. The process is quicker and easier than trading stocks in your brokerage account. You can sell your coins, anytime, anyplace, and get instant cash for gold.

  1. Useful During Emergency

One of the biggest advantages of buying gold is that it can protect you during periods of financial, political or social turmoil. Depending on the nature of the crisis, you can also sell your gold coins to make a big profit. When a crisis arises, people turn to gold as a safe haven. The greater the crisis, the greater is the demand for gold.  With the increasing demand, the price of gold rises. This is the perfect time to cash in on the opportunity and make a huge profit.

  1. Provides Better Returns

Unlike bonds, shares and equity funds, gold provides higher long-term returns. The ROI (Return on Investment) in the share market is directly proportional to the nation’s economic growth. Simply speaking, an increase in economic growth results in higher ROI. On the other hand, the value of gold doesn’t depend on the economic growth. In fact, you can expect a rise in the price of gold during economic turmoil. Gold has delivered high returns over the long run, even outperforming some of the other major asset classes.

Source: World Gold Council

  1. Low Maintenance Costs

When you have physical gold, it’s important to keep it safe. While professional storage comes with an annual fee, vault charges are generally low. With a small storage cost, you can have peace of mind. Simply lock your valuables in a vault until you need them. No complicated tax issues and no renter payments! Remember that gold is high in density, and so even a handful of gold can hold a value of $50,000 or more.

Gold has a long history for its use as money. In ancient times, barter system was the most common means of trading. As huts transcended into houses and villages developed into townships, the need for a standardized mode of payment also grew. Paper money took over coins, but gold never lost its shine. Besides being a long-term store of value, gold acts as an insurance during financial crisis. History shows that it has done it right.

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