If you’d ask people what they would own that could give them a secure future, most would probably answer gold. That’s not without reason, because centuries and millennia ago, it represented something much more than the shining metal used for jewelry. Today, this precious metal is not a luxury but a necessary investment asset for all those who want to secure and increase their wealth.
Investment gold is available to everyone, and there are many reasons why you should have it in your portfolio. Historically, it was an international currency. Nowadays, the yellow metal isn’t in circulation in such a way, but you could exchange it for money anytime, anywhere. One of its forms, coins, is more than that, as they have maintained the primary function of payment means for a long time.
Today, gold (but also silver) coins are sought after as both collectors’ items and as IRA-allowed assets. If you opt to invest with a self-directed IRA, you can only hold IRS-approved precious metals. So you need coins of certain purity, weight, and quality bought from certified dealers like BGASC, who have a long-standing reputation and record of a successful business.
Gold coins are generally a good investment because they have all the good sides of this precious metal as an investment vehicle. But before you decide on this venture, it is essential to understand these benefits.
Inflation Protection
One of the reasons why yellow metal is a desirable investment is its property of being uncorrelated with money. Although this precious metal is a commodity, it doesn’t directly depend on the value of money, namely the dollar, which is considered the global currency. In fact, throughout history, gold has been noted to perform best when the dollar value has fluctuated and inflation has been high.
This precious metal, even in the form of coins (they contain a very high percentage of pure gold), is almost ideal protection against inflation. As a rule, the value of coins grows more intensively than the value of inflation, and in this way, they can protect your wealth.
Besides, gold is also a physical asset that can’t disappear overnight and will always be worth something. In fact, there’s a high chance its value will continue to grow.
Growth Potential
The specificity of coins is that their nominal value isn’t the same as their real value, that is, the worth of the precious metal in them. Of course, they are worth much more than indicated. Their price mostly depends on the price of gold on the global stock exchanges, which is mostly influenced by supply and demand factors.
It’s certain that the gold demand greatly exceeds the supply, especially now that more and more industries are using this precious metal as a raw material. Simply, it’s physically impossible to mine such a quantity of ore in a short time to satisfy the market needs. Also, the mining process is complex and expensive, which also adds up to the value of the yellow metal.
If we talk about collectible coins, their worth is also affected by some additional factors, such as rarity and preservation. Also, some coins are much more valuable if they are part of a collection. In that case, their value often exceeds the worth of the gold in them.
In terms of collecting, coins are not a primary investment but a passion. Some people just enjoy having and admiring them. Still, that doesn’t negate that coins can be an excellent way to protect their savings.
Things to know if you plan to start collecting coins:
Excellent Long-Term Investment
If you take a look at the price of gold from a couple of decades ago until today, you can see constant growth. Of course, due to inflation and the loss of money value, things are not simple to follow. Still, the rise in gold value is certainly noticeable. Fluctuations in gold price exist, even daily, but compared to other investment vehicles such as shares, they are minimal.
Coins aren’t an asset that brings short-term earnings. Investing in them carries minimal risks, which doesn’t make them very profitable in the short term. But if we look at the long term, this form of precious metal in your portfolio is an excellent way to preserve and enlarge your wealth. In that case, the return on this asset can be very high, whether you get into gold through or outside an IRA.
Ease of Investment
Gold coins in your investment portfolio are the real deal, and you can invest in them even if you don’t have much experience. You can buy coins both online and offline in reputable jewelry stores and dealers. Just make sure you know how to choose your supplier. Find some guidelines here.
Another great thing about coins is their affordability. You can buy small weights and add precious metals to your portfolio one step at a time. These can be coins of just a few grams to those of larger dimensions and purity. In addition to easy purchases, you can quickly liquidate these assets, sell them at market prices, and get cash.
Investing in coins as a form of investment in gold has many benefits. Whether you’re a beginner or a seasoned investor, you should have a part of your savings in this precious metal because it’s the best protection for your portfolio and wealth.