Are Gold Coins a Good Investment?
The following article is created by Orion Metal Exchange for the benefit of our investors and perspective investors alike. We seek to provide relevant content concerning precious metals and the impact caused by economic and geopolitical trends that will most likely impact your financial future. If you are interested in learning about precious metal investing, call 1-800-559-0088, for a FREE investor kit.
Gold coins has been used for barter and as a store of wealth for thousands of years. Offering liquidity and financial freedom from debt.
Unfortunately, gold’s historical significance has been ignored by many individuals who mistakenly choose to rely on fiat money as a store of wealth. Fiat money is paper currency designated as legal tender by a government decree. Fiat money is not backed by a physical commodity. The value of fiat money can be manipulated through government policy. As government deficits expand, the value of fiat money generally contracts. When this happens, the costs of goods, services, and commodities rise.
Gold coins are used as a hedge to protect against the erosion of purchasing power when fiat money values contract. The value of gold coins is not directly dependent on factors such as fiscal or monetary policy. Gold coins have intrinsic value and are considered real money.
The advantages of gold coins:
Intrinsic Value
Gold’s intrinsic value is based on its scarcity, durability, and cost to produce. Gold coins are used as a hedge against inflation because the cost of production will rise when inflation is present.
With gold coins, individuals can take physical possession of their holdings. Offering more control and security. Many individuals who invest in paper assets cannot determine the physical location where their wealth is stored. With gold coins, individuals know exactly where their holdings are located. Unlike many paper investment vehicles, which are encumbered in debt, no one is loaning or borrowing against your gold coins. This means that no one is borrowing or loaning against your financial future.
Global Liquidity
Gold is recognized by central banks and governments alike as a store of value. Many sovereign mint coins are legal tender designated. Individuals can exchange sovereign mint produced gold coins for goods, services, and fiat currencies anywhere in the world. Gold is the ultimate global currency.
Hedge Against Inflation
Gold’s value will increase when inflation rates rise. This is why gold is considered the number one combatant against inflation. Gold coins help individuals protect their purchasing power over time. This is not the case with other investments, such as bonds. A bond bought for $100 will remain worth $100 forever. Inflation is the reason a $100 bill doesn’t purchase what it used to.
Gold coins will protect your purchasing power over time and continue to rise in value with inflation.
Tax Saving
While owning gold coins, you are not required to pay a tax. A capital gains tax is based solely on the profit realized at time of sale. This enables individuals to retain long-term portfolio value when owning gold coins.
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Why own gold coins?
Gold coins offer the ability to hedge against economic uncertainty and inflation. Historically, gold coins have offered long-term stability and growth. A properly diversified portfolio must include a percentage of precious metals to hedge and help stabilize against the volatility that can come with more speculative investments.
What size of gold coins are the best to buy?
Generally, smaller denomination coins offer affordability, flexibility and better liquidity at time of sale. As gold rises in value, smaller denomination coins are more likely to retain a premium value due to supply and demand factors. Contact Orion Metal Exchange to discuss what size coins may align with your personal financial objectives and liquidity needs.
The following article is created by Orion Metal Exchange for the benefit of our investors and perspective investors alike. We seek to provide relevant content concerning precious metals and the impact caused by economic and geopolitical trends that will most likely impact your financial future. If you are interested in learning about precious metal investing, call 1-800-559-0088, for a FREE investor kit.
