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Should I buy gold coins?

Should I buy gold coins?

Gold bullion are an asset that will hold value due to their gold content; gold coins which are more numismatic, that is, collector’s items, may not retain the same value.

The value of gold coins is twofold: the price of the gold in the coin and the numismatic value of the coin. There is an important distinction to be made, because some gold coins will have a lot of one, and not the other, and, if you want to make sure your investment is an investment in precious metal and not just a collector’s item, you should make sure you’re getting a coin that qualifies as bullion.

Quite often the numismatic value is higher than the value of the gold, and coin dealers will often pressure you to take these coins over the others in an effort to earn a higher commission. This can make it a little more complicated to keep up with the value of your gold portfolio, however, and you may not see the same rate of return on this portion of it as the others.

It may be higher or lower. Also, it is possible to hold certain kinds of gold bullion as part of an IRA, but you must adhere to the guidelines. Note that the collector’s gold coins are excluded from being held inside of an IRA.

Particularly with regards to collector’s coins, you have to be an expert to know what the “right price” is. The most popular gold coin is the “South African Krugerrand,” with about 1.5 million kilograms of these coins in circulation.

Other gold coins include “American Gold Eagle,” “British Sovereign,” “Canadian Gold Maple Leaf,” and “Chinese Gold Panda.”

Keywords: gold, portfolio management, asset allocation, IRAs, gold bullion, collector's items, numismatic value,
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