Are Gold Coins A Good Investment

Before you gold trolls start hurling cyber insults at me i have to confess upfront that i don t mind if anyone owns gold.

Are gold coins a good investment. I m talking pure gold bullion. I want to stress here that i m not talking about gold coins or other collectibles like jewelry. At such times dealers get short of stock and sellers who are brave enough to sell into the gold price strength of a panic may well actually get a premium over the published gold price. There is a good time to sell gold coins but very few people ever manage to benefit from it.

Here are some advantages and disadvantages of buying gold coins as an investment. Gold and other hard metals have always been a time honored part of traditional investment plans. Well known coins like the krugerrand enjoy a great secondary market and possess all the attributes required to make it an attractive investment. Unfortunately these coins have no additional value beyond their bullion or face value when you or your heirs eventually sell them.

1 worst coin investment tv shopping show dealers and mints number one on the list is the tv shopping network coin dealers and premium mints that sell nice looking commemorative coins for exorbitant prices. Dealers sell these gold investment bars for a slight premium over spot price. Investors traditionally turn to gold as a haven in times of economic crisis and its value often falls when the going gets good. However only uk coins are considered to be legal tender and their sales are cgt exempt by investing in british gold coins you also get.

If your primary purpose is to buy gold bullion as an investment my recommendation is that you don t buy gold coins. I have a few coins myself. Today owning gold can act as a hedge against inflation and deflation alike as well as a good portfolio diversifier. One thing you must keep in mind is gold doesn t have any intrinsic value.

It doesn t pay a dividend. But i don t think gold is a good investment. When asking are us mint coins a good investment from a historic perspective keep in mind that more coins end up in the pockets of investors than in collections. Throughout history gold has been seen as a special and valuable commodity.

To save on taxes it s important to know which gold coins to buy. To get the best out of gold you need to time the market and try to. When gold is not a good investment. Gold coin investing can be very tax efficient.

You really want to look at coin grading factors such as surface preservation luster strike quality errors and so forth. Gold tends to go up when other investments decline providing a stabilizing effect for your portfolio.