Learn to Day Trade - Get Free Mini Course

Always Believe In Gold: Why Collecting Coins Is A Golden Long Term Investment Opportunity

For many investments today, economic conditions are making profits incredibly difficult. Inflation is slowly eating away at the value of portfolios, and now might be the time to diversify. Gold and in particular gold coins are always a place to turn to when the tides of finance change. If you’ve never considered gold coins as an investment, current market volatility creates the perfect opportunity to start learning why they offer a golden opportunity. They’re indestructible, you can always believe in gold coins.

Related Read: What are Investment Mandates and Why Do You Need them?

As Old As The Hills

Gold, always readily bought and sold, offers several benefits when included in an investment portfolio. The history of gold is as old as the history of humanity, almost. That is part of what makes it such a stable investment. The value of other assets may fluctuate, but gold remains a solid investment over time. It’s as good as, well, gold. Coins are an easy to trade tangible gold asset that you can hold in your hands. With the value of paper currency dwindling, the comfort of owning a tangible asset with intrinsic value can’t be overestimated.

Markets in every corner of the globe trade in gold coins, from the trading floors of financial districts to nomad bazaars in the desert. Coins are easy to move in every circumstance, buying or selling. Despite being as hard as stone, gold coins are highly liquid assets. Look at this guide from Physical Gold to find out all the reasons why gold coins are a great investment. They’ve helped customers trade coins for over 15 years and can explain all the benefits of holding gold coins. 

A Bull Market

The majority of gold coins that are traded day to day are  ‘bullion coins’. These are minted primarily for their precious metal content and are valued based on their weight and purity. These coins are often produced by government mints and are widely recognized and traded across the world. Bullion coins are ideal for investors who want to acquire gold at close to its market value.

Numismatic coins have a value in gold, but also a historical value, and are often sought after by collectors. They can carry a significant premium above their ‘gold price’ value. A golden Doubloon from the 18th Century for example, would be worth a lot more than its weight in gold. While both types can be profitable, bullion coins are generally favored by those primarily interested in gold’s investment value and liquidity, while numismatic coins appeal more to coin collectors or people looking beyond the metal’s market price.

Know Your Gold

It is essential to research the historical performance of the specific gold coins under consideration. This is just good practice if you are taking an investment seriously. Identifying trends and researching the reputation of the mint that produces the coins can give you a good idea of the quality of a coin. 

Take a look at the track record of its mint, and its seller, to help ensure quality and authenticity. Keeping track of gold prices, economic indicators, geopolitical events, and investor sentiment can help you judge the potential for the coins, as well as the risks. Regularly monitoring the market and reading up on gold prices in general, and coin values in particular, can help you when making your decision. Combine these strategies to increase your chances of making more profitable gains from building a gold coin collection. 

Diversification is the secret to success. Invest broadly, but wisely, and include a pot of gold in your portfolio. Bullion coins are a great long term, and versatile, investment to hedge against the fickle forces of the financial markets. Get to know gold, and bury some treasure for the future.