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Investing In Collectible And Commemorative Gold Coins

Investors who are interested in diversifying into tangible assets often first consider gold. There are many ways to invest in gold: gold bars, gold jewelry, gold stocks, and even gold coins. But gold coins can have some advantages over other gold investments, provided that the investor does their due diligence.

Gold Coins Have Two Types of Value

Gold coins don't just have the raw value of their gold -- they also have a collectible value that will appreciate as they age. This allows an investor to hedge their bets. Even if the gold itself goes down (which has rarely happened), they will still have a collectible piece.

Gold Coins Have a Lower Barrier to Entry

Buying a gold bar is going to cost thousands of dollars, especially as the price of gold rises. Gold coins allow investors to control the amount of gold they purchase; they can purchase gold coins that are worth just a few dozen dollars or gold coins worth hundreds. This is ideal for an investor who is just beginning to diversify.

Gold Coins Are a Physical Investment

The major reason many investors purchase gold is because it's a physical investment. If you purchase gold futures or gold stocks, you will still end up in trouble in the event that the stock market itself crashes. Gold itself as a physical commodity will always have some inherent value because it is both finite and useful.

Gold Coins Can Be Easily Liquidated

Finally, one of the major advantages to gold coins is that they can be sold very easily. There is a gold buyer on virtually every corner of a busy city, and these buyers are able to very quickly price out gold coins. If you feel you might need your money liquidated quickly for any reason, a gold coin is usually the best bet. Other items such as jewelry may be more difficult to price out and sell, because they won't be as pure, and they will need more processing.

As noted, an investor needs to be particularly vigilant when they are trading in gold coins. Because it isn't just the gold that has value but also the provenance of the piece, they need to be able to identify potential fakes and make sure that they are getting their money's worth. Even so, gold itself will always have value -- investing in a gold testing kit alone can be enough to ensure the bulk of the value for most investments. For more information, talk to a professional like Beaverton Coin & Currency.