Are Gold Coins A Good Investment

When gold is not a good investment.

Are gold coins a good investment.

If your primary purpose is to buy gold bullion as an investment my recommendation is that you don t buy gold coins. To save on taxes it s important to know which gold coins to buy. Today owning gold can act as a hedge against inflation and deflation alike as well as a good portfolio diversifier. Investors traditionally turn to gold as a haven in times of economic crisis and its value often falls when the going gets good.

Well known coins like the krugerrand enjoy a great secondary market and possess all the attributes required to make it an attractive investment. You will be better off to invest in generic gold bullion ingots and bars. Before you gold trolls start hurling cyber insults at me i have to confess upfront that i don t mind if anyone owns gold. To get the best out of gold you need to time the market and try to.

There is a good time to sell gold coins but very few people ever manage to benefit from it. It doesn t pay a dividend. Gold coin investing can be very tax efficient. Gold tends to go up when other investments decline providing a stabilizing effect for your portfolio.

One thing you must keep in mind is gold doesn t have any intrinsic value. It is when there is a mad rush to buy gold coins by the investing public. Gold and other hard metals have always been a time honored part of traditional investment plans. Here are some advantages and disadvantages of buying gold coins as an investment.

Dealers sell these gold investment bars for a slight premium over spot price. I have a few coins myself. You really want to look at coin grading factors such as surface preservation luster strike quality errors and so forth. I want to stress here that i m not talking about gold coins or other collectibles like jewelry.

Advantages to buy gold coins. Throughout history gold has been seen as a special and valuable commodity. 1 worst coin investment tv shopping show dealers and mints number one on the list is the tv shopping network coin dealers and premium mints that sell nice looking commemorative coins for exorbitant prices. When asking are us mint coins a good investment from a historic perspective keep in mind that more coins end up in the pockets of investors than in collections.

However only uk coins are considered to be legal tender and their sales are cgt exempt by investing in british gold coins you also get. At such times dealers get short of stock and sellers who are brave enough to sell into the gold price strength of a panic may well actually get a premium over the published gold price.