Skyrocketing demand for safe-haven assets like gold have caused large scale migrations away from riskier assets like stocks by investors looking to protect their hard earned wealth by ‘finding the best gold investment possible’. This comes as no surprise, especially since the metal has proven its ability to thrive time and time during troubling economic scenarios. Gold’s value has increased more than 400% in the past decade, thus investors continue flocking to this historically powerful safe-haven tool.
Finding the best gold investment that suits your investing goals perfectly should be your main goal when purchasing gold bars and coins and the first step that you want to take is fully analyzing your portfolio in order to understand what products could be best for you. If you seek true security with your gold investment don’t settle for anything less than physical possession bars and coins for inside or outside retirement accounts. Gold stocks and Exchange Traded Funds hold several weaknesses that make them just as risky as traditional stocks, bonds and real estate.
The physical gold investment market can be separated into two distinct categories; modern bullion products and certified rare coins.
1. Modern bullion products
Products like the American Eagle and Johnson Matthey bars are useful for short-term profit because they hold very low premiums above the spot price of gold, usually around 5%-7%. However the problem for investors is that the market deals in 400 ounce gold bars costing around $500,000 which can be expensive for a lot of people! A highly reputable gold bullion business called Bullion Vault, partly owned by the World Gold Council and a member of the London Bullion Market Association, has solved this problem. Here investors can choose to buy part of a good delivery gold bullion bar, or even a whole bar if they so wish which makes gold bullion investing much more affordable for many.
2. Certified rare coins.
Coins like the $20 Saint Gaudens and $20 Lady Liberties are useful for long-term wealth preservation because their numismatic attributes help them maintain value over the years while at the same time increasing in value when the spot price increases. While some coins can be purchased in circulated condition for a small premium over the bullion spot price investors should be prepared to pay a very high premium for coins in superb condition. Care should be exercised in only dealing with reputable coin dealers to avoid paying grossly inflated prices.
Whichever product you decide on you will find that your gold investment will produce good returns for you in the long term as part of a well balanced and diverse investment portfolio.
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