Among precious metals, gold is the most popular investment . Investors usually buy gold as a means of protection or safe haven against any economic, political, social or currency-based crisis. Some of these crises include investment market declines, currency failure, inflation, and war and social unrest. But while gold is the investment of choice, which type of gold investment is good for you? Here are a few things to consider to help you decide.
The two common types of gold investments are modern bullion products and certified rare coins. Each has its own advantages and disadvantages. Gold bullion bars and coins come in different weights and sizes ranging from 1 gram to 400 ounces for bars and 1/10 ounce to 1 ounce for coins They are useful since you have a large amount of wealth in a very small space.
Investors like to use bullion as a physical possession investment since it can make a lot of profit. This is often considered a short-term investment because of the large risk of bullion confiscation in the long run. Certified rare gold coins, on the other hand, are authenticated by a reliable third party certifying agency. These are individually placed in a sonically sealed, tamper-proof encapsulation with visible Mint State grading and certification that’s permanently imprinted.
Certified coinage is also a physical possession investment that protects one from inflation and bullion confiscation owing to a bad economy. This is mostly used as a long-term investment because it offers protection from bullion confiscation.
To be on the right track, determine what financial returns you expect from owning gold. Do you intend to use gold to protect your portfolio? Or are you interested in making a quick profit? Your answers will help you decide whether to invest in gold bullion or a longer-term type of investment like certified gold coins.