The first gold coin ever struck in human history is believed to have been produced in modern day Turkey. Referred to as “Prototype Heavy Stater”, this coin dates back 2,500 years. Rough compared to today’s minted coins the gold itself is still just as valuable today as it was then. The global demand for gold has increased over the years and shows no signs of slowing. Gold is even the level of quality for which something is measured , as in the phrase “gold standard”. Below are four advantages of buying gold coins as an investment
A Barrier Against Inflation
The price of gold almost tripled from 1998 until 2008 coming in at $1,000 an ounce, which led to a surge in gold buying. Much of this gold was in the form of gold coins. When people rush to buy the security of gold the prices go up, sometimes dramatically. From 2008 in only four years, in 2012 the price made huge gains again at roughly $1,800 an ounce. With the 2008 financial crisis being the biggest lurch to our economy since the Great Depression, gold, as always, was a consistently safe market. Even when the whole world seemed to shut down in the coronavirus pandemic, gold prices went up to an astonishing $2,000 an ounce for the first time ever.
Gold Is Independent Of Local Currency
When the value of local currency drops, for example in the case of the US dollar, the prices of gold historically begin to rise. Purchasing gold coins for sale is a reliable way to invest your capital and diversify your portfolio. Considering that even if there is a massive decline in the US dollar, you could still rely on the value of gold, and use your gold coins to buy and sell every day needed items until the market stabilizes.
Gold coins carry a face value, though it would be difficult to use actual gold coins in lieu of a dollar bill. There are however still industries that will accept gold as payment for goods and services. In several states US legislation has been passed to allow residents to back their currency with precious metals, including gold, creating “sound money” as well as do away with income tax and sales tax on precious metals.
Diversifying Your Portfolio
Gold is a valuable asset and can protect you from the ups and downs of uncertain markets now and in the future. Self directed IRAs are available, however they require a special broker. You won’t be carrying the coins home, but they will be stored by a depository approved for storing gold. Often people invest in gold to protect themselves from inflation. Gold has been used for many thousands of years as a constant in the financial world.
For anyone looking for security, from financial investors to everyday people, gold is always a wise investment. Gold independent of local currencies often goes up in value when the market goes down. Buying gold coins for sale is an excellent way to invest your money. For instance, Gold American Eagle coins are a popular way for investors to purchase gold as part of their investment portfolio. Additionally they come in four face values being $5.00 1/10 ounce, $10.00 1/25 ounce, $25.00 ½ ounce, and $50.00 one ounce coins making initial investing easy for beginners and seasoned investors alike.
A big advantage of buying gold coins for sale is the ability to squirrel them away for a rainy day fund. Additionally, there are no capital gains to pay unless you sell them down the road for a much higher price. Your secret is safe from prying eyes unless you choose to tell someone. Of note, you may want to obtain a safety deposit box because a home safe can be breached by determined thieves with metal detectors. Keeping them safely locked away in a bank vault gives you peace of mind that your investment is insured against theft.
Choose A Reputable Gold Dealer
Unlike the stock market you won’t need a professional to invest in gold coins. There are many sources that you can purchase from. Wherever you procure your gold coins for sale, make sure that they are from a reputable dealer; you don’t want to find out later that you have bought gold plated junk metal. If you choose to keep them in a home safe, be sure to save your coins properly against fingerprints and scratches in a cool, dark place away from humidity.