Did you know that in 2020, gold had a 24.6% investment return rate?
With the stock market bouncing up and down, it can be hard to know where to put your money. Gold has been a stable investment for centuries, but which is better for you- bullions or coins?
Investing in gold bullions or coins can be a great way to protect your portfolio and ensure that your money is safe. Keep reading because here’s a breakdown of the pros and cons of each so you can make the best decision for you.
What Is Gold Bullion?
Gold bullion refers to a Gold product that is valued by its weight in Gold. Products like Gold bars or ingots are considered Gold bullion, and are traded based on their live Gold price.
The term “bullion” derives from the old French word bouillon, which meant boiling, and was used to describe the activity around the trading of precious metals.
Bullion products are often kept as an investment because they tend to hold their value better than other investments, like stocks and bonds. T
This is because Gold is a scarce resource, and it’s not subject to the same kind of fluctuations that stock prices are.
When the stock market crashes, the price of Gold usually goes up, making it a good investment for diversifying your portfolio.
What Is Gold Coin?
A Gold coin is a coin that is made mostly or entirely out of Gold. Bullion coins are usually minted by governments, and they are used as legal tender. These coins usually have a face value that is lower than the value of the Gold.
For example, the American Gold Eagle has a face value of $50 but it contains about $1,000 worth of Gold.
Gold coins are often collected for their numismatic value, which is the value that a coin collector assigns to a coin based on its rarity, condition and age.
Some Gold coins can be quite valuable, even if they don’t contain much Gold. For example, the 1933 Saint-Gaudens Gold Double Eagle coin was minted in very low numbers and most of them were melted down by the government.
Only a few hundred are known to exist, making it one of the most valuable Gold coins in the world.
Advantages of Buying Gold Bullion?
There are several advantages to buying Gold bullion over coins. One of the main advantages is that bullion is usually cheaper than coins. This is because there are no additional costs, like numismatic value, associated with bullion.
Another advantage of bullion is that it’s easier to trade. You can easily buy and sell gold bullion bars or ingots without having to worry about whether or not a coin collector will want to buy it from you.
Disadvantages of Buying Gold Bullion?
One of the main disadvantages of buying Gold bullion is that it can be difficult to store. Bullion bars or ingots can be quite heavy and bulky, so you might have to invest in a safe or storage locker to keep them in.
Another disadvantage of bullion is that it’s not as portable as coins. If you’re ever in a situation where you need to sell your Gold quickly, it might be difficult to find a buyer for your bullion bars or ingots.
Advantages of Buying Gold Coins?
One of the main advantages of buying Gold coins is that they can be quite valuable. This is because some coins are very rare, and they can be worth a lot more than their Gold content.
For example, the 1933 Saint-Gaudens Gold Double Eagle coin mentioned earlier is worth more than $7 million!
Another advantage of Gold coins is that they’re easy to transport. You can carry them with you or ship them without having to worry about their size or weight.
Disadvantages of Buying Gold Coins?
One of the main disadvantages of buying Gold coins is that they can be more expensive than bullion. This is because of the added costs, like numismatic value, associated with Gold coins.
Another disadvantage of Gold coins is that they can be difficult to trade. Not everyone is a coin collector, so it might be hard to find a buyer for your Gold coins.
How to Buy Gold Bullion and Coins?
If you’re interested in buying gold bullion or coins, there are a few things that you need to know. First, you need to find a reputable dealer.
There are many dealers that sell Gold online, so make sure to do your research before you buy from one.
Once you’ve found a dealer, you need to decide what type of Gold you want to buy. You can buy gold bars, ingots or coins. Each has its advantages and disadvantages, so make sure to choose the option that’s right for you.
Finally, you need to decide how much Gold you want to buy. The amount of Gold you need will depend on your investment goals and budget. You can learn more here.
Ready to Invest in Gold Bullions?
Whether you decide to invest in gold bullions or coins is ultimately up to you. However, we hope this article has helped provide some clarity on the differences between these two investment options.
Be sure to check out our blog for more articles on gold bullion prices and where to buy gold bullion, and good luck with your investing!
And don’t forget to send this to anybody you know who might be looking into investing in Gold Bullion.