Are Gold Coins A Good Investment

When gold is not a good investment.

Are gold coins a good investment.

Dealers sell these gold investment bars for a slight premium over spot price. It is when there is a mad rush to buy gold coins by the investing public. Investors traditionally turn to gold as a haven in times of economic crisis and its value often falls when the going gets good. If your primary purpose is to buy gold bullion as an investment my recommendation is that you don t buy gold coins.

But i don t think gold is a good investment. 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. I want to stress here that i m not talking about gold coins or other collectibles like jewelry. Unfortunately these coins have no additional value beyond their bullion or face value when you or your heirs eventually sell them.

You will be better off to invest in generic gold bullion ingots and bars. I have a few coins myself. Gold coin investing can be very tax efficient. To get the best out of gold you need to time the market and try to.

To save on taxes it s important to know which gold coins to buy. 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. 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.

There is a good time to sell gold coins but very few people ever manage to benefit from it. You really want to look at coin grading factors such as surface preservation luster strike quality errors and so forth. It doesn t pay a dividend. One thing you must keep in mind is gold doesn t have any intrinsic value.

Before you gold trolls start hurling cyber insults at me i have to confess upfront that i don t mind if anyone owns gold. Here are some advantages and disadvantages of buying gold coins as an investment. Throughout history gold has been seen as a special and valuable commodity. 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.

Gold tends to go up when other investments decline providing a stabilizing effect for your portfolio. I m talking pure gold bullion.