Are Gold Coins a Good Investment?
Gold has been used as forms of investment throughout the ages. They have an intrinsic value that does not depreciate over time.
Most of the money we have today we hardly see it in physical form, which is why there is something satisfying too about buying gold coins. No investment can compare to going to a shop, buying a bag full of gold coins, and bringing them back home to feel the weight of each coin.
The best thing about gold coins is that their value does not depend on factors like the fiscal or monetary policy, unlike various others investments like stocks, real estate and bonds.
However, many investors consider investing in gold coins to be crazy in this modern age. Is that really so?
Let’s look at some of the advantages of investing in Gold coins to know whether it is really worth investing in gold coins:
Since gold has intrinsic value, the control of your investment will be in your hands. All gold coins are the same, and you don’t have to pick and choose the investment good coins from the bad ones. You can be assured that the value of the gold coin will remain stable no matter what happens.
The best thing about investing in gold coins is that even if an economic apocalypse takes place and all is lost, your investment will remain as is, if not increase in value. This may sound like too far-fetched, but has happened in some countries, where the currency devalued to a great extent and people started dealing in gold and silver coins.
Holds Value Everywhere
Because of its intrinsic value, gold coins you buy from anywhere in the world will have the same value all across the globe. It is an international currency in the truest form of the word, and can be liquidated at any time.
Hedge Against Inflation
The thing about gold is that its value will increase with the prevailing inflation rates. This means that a gold coin you buy now will sell at a higher price in the future after the inflation has been adjusted. This is not the case with other investments, such as bonds. A bond bought for $100 will remain worth $100 forever.
Therefore, gold coins will provide your investment portfolio with an important hedge against inflation.
With gold coins, you won’t have to pay capital gains tax until you decide to sell your gold coins.
This makes gold coins a very cost-effective form of investment when compared to other types of investments.
With the above-mentioned advantages, we can safely say that investing gold coins is a good investment. However, there are several risks attached to it, for example, the authenticity of the gold coins and of course vulnerability to theft.
Therefore, it is important to be careful. You shouldn’t buy gold from eBay or Craigslist. Look for an authentic and certified seller, who also helps in you storing the gold safely.