Many believe that investing in gold can help in securing your assets against inflation. It’s because the value of gold increases as time passes by. Moreover, it has an inverse relationship with the US Dollar, the global pricing of gold. So, when the US Dollar weakens, gold prices increase.
That’s why many people buy gold for jewelry purposes or to diversify their investment portfolio. Moreover, there are many ways you can invest in gold. The most popular ones are buying physical gold in the form of bars and coins. Depending on your investment situation and goals, you should understand the following so you’d know which one to buy:
Value
Gold coin values are dependent on the market fluctuation and volatility of the overall price of gold. For instance, if gold prices fluctuate at 3%, a gold coin’s value may decrease to USD$30-USD$50. Moreover, collectors use various traits to determine whether a gold coin is rare or common.
Dealers and collectors use a reference to determine a coin’s rarity and history. They also carefully evaluate the coin’s condition and inspect it for mintmark. This mark found in a coin’s face is a small letter referring to the city it was produced. It may be a small letter, but it’s a vital factor determining a coin’s rarity. The rarer the coin is, the more valuable it becomes.
On the other hand, a gold bar’s value depends on the manufacturer, purity or fineness, and weight. When assessing the current price of gold, you can use spot market value, which is the gold standard in the market. As for the level of purity of gold bars, the purest form is known as 24K, which means it’s pure gold. If you’re investing in gold bars, you should buy ones with 99.5% to 99.99% as these are investment-quality gold bars.
Buying Process
When you’re buying gold coins as an investment, you must be wary of scams. If you’re not an expert or a collector, you may find it hard to determine if it’s an authentic gold coin or just a gold-plated lead coin. That’s why it’s best to buy gold coins from reputable online stores, like Oxford Gold, or your local jeweler.
When you do buy from online retailers, a gold coin must come in a tamper-proof packaging to protect it from damage, fraud, or counterfeiting. Moreover, if you intend to sell it, you shouldn’t open or tear the packaging to prevent tarnishing its credibility and purity.
As for buying gold bars, you can also buy them online. You go into the online retailer’s site, choose the price, quantity, and weight of the gold bars you wish to buy. You can also buy gold bars by bidding on eBay or other auction sites. If you want, you can also go to cities such as Dubai, Las Vegas, and New York to personally purchase gold bars.
What’s important is to review the authenticity and rating of the seller. Look for negative feedback regarding failure to deliver, pricey handling and shipping fees, and authenticity issues. If they have more bad feedback than the good ones, consider it a red flag.
Storing
Buying is one thing, but storing gold coins and gold bars is not that simple. Both require secure and safe storage to ensure their credibility. Moreover, if people know that you keep your gold coins or bars at home, you’re prone to theft or robbery.
Since these are valuable investments, you should instead keep them in banks or third-party storage companies. With such, you can ensure that your gold coins or bars are in good hands. Not only can you have peace of mind as you decrease your chances of being robbed at home, but your gold bars are in good hands as well.
Conclusion
When investing in gold bars or coins, you should understand the factors that affect their value. One of the determining factors for gold coins is their rarity, while gold bars depend on the purity level. As for buying them, you can purchase them both online; but, with gold bars, you can’t buy them from your local jeweler, unlike gold coins. What’s important is to store them in safe places, like banks and third-party storage companies. That way, you can secure their credibility.
