Are Gold Coins A Good Investment

I want to stress here that i m not talking about gold coins or other collectibles like jewelry.

Are gold coins a good investment.

You really want to look at coin grading factors such as surface preservation luster strike quality errors and so forth. You will be better off to invest in generic gold bullion ingots and bars. Advantages to buy gold coins. 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.

Unfortunately these coins have no additional value beyond their bullion or face value when you or your heirs eventually sell them. Before you gold trolls start hurling cyber insults at me i have to confess upfront that i don t mind if anyone owns gold. Investors traditionally turn to gold as a haven in times of economic crisis and its value often falls when the going gets good. Well known coins like the krugerrand enjoy a great secondary market and possess all the attributes required to make it an attractive investment.

Gold tends to go up when other investments decline providing a stabilizing effect for your portfolio. I have a few coins myself. Dealers sell these gold investment bars for a slight premium over spot price. I m talking pure gold bullion.

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. Today owning gold can act as a hedge against inflation and deflation alike as well as a good portfolio diversifier. Here are some advantages and disadvantages of buying gold coins as an investment.

When gold is not a good investment. Throughout history gold has been seen as a special and valuable commodity. It is when there is a mad rush to buy gold coins by the investing public. To get the best out of gold you need to time the market and try to.

Gold and other hard metals have always been a time honored part of traditional investment plans. 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. It doesn t pay a dividend. Gold coin investing can be very tax efficient.

One thing you must keep in mind is gold doesn t have any intrinsic value. If your primary purpose is to buy gold bullion as an investment my recommendation is that you don t buy gold coins.