| With the security that precious metals provide | | | | gold contained is printed on the coin then two |
| from the recent economic and political instability, | | | | one-ounce gold coins will contain the same amount |
| most investors understand that it is a wise idea | | | | of gold. But pure gold does have slightly higher |
| to invest in gold or silver. But many can't decide | | | | prestige and may be more easily sellable because |
| what the best way to invest in gold or silver is. | | | | they can be melted down easily. In a time of |
| The way you choose depends on your reasons | | | | crisis that ability to be melted down may be |
| for investing in gold, and how much you are | | | | worth something to someone. I personally prefer |
| looking to spend. | | | | the purest gold I can find because I just find it |
| One of the best way for the average person to | | | | aesthetically more pleasing, and more impressive |
| invest in gold is with gold coins. Gold coins have | | | | to imagine its contents. And if you are going to |
| several benefits over large gold bars. With the | | | | invest in gold coins you should enjoy it! |
| exception of the smaller gold bars (say, an ounce | | | | Some popular coins of 917/1000 purity are: |
| or less), gold bars come in large denominations | | | | The US American Eagle |
| that are somewhat illiquid. For example, if you | | | | The South African Krugerand |
| have a 10 ounce gold bar and you want to sell a | | | | The British Sovereign |
| half-ounce of it, you can't slice off a piece of the | | | | Some popular coins of 999/1000 purity are: |
| bar. You have to sell the whole thing. On the | | | | Canadian Maple Leaf coins |
| other hand, if you have 20 half-ounce coins (or | | | | Australian Kangaroos |
| small bars, which are available), you can sell just | | | | The Chinese Panda |
| one coin and keep the rest of your investment | | | | (Nice stereotypical names, I know!) |
| intact. This liquidity would also be useful in times of | | | | 2) Some coins, particularly older coins and rare |
| severe crisis. Imagine a time of total war and | | | | coins, have "numismatic value", or additional value |
| hyper-inflation. Let's say you wanted to exchange | | | | due to collector's prestige. While these can be just |
| some gold for an escape option, or for some | | | | as good investments as any because their |
| necessities such as food or clothing. Smaller | | | | prestige is unlikely to decrease, their value doesn't |
| denominations would be more useful for buying | | | | depend only upon the official gold spot prices. If |
| such necessities. Otherwise you could easily be | | | | your motivation for buying gold is not as a |
| exploited by people who demanded the entire | | | | hobbyist but rather as an investor, it may make |
| gold bar. Like being stuck with taxi driver who | | | | more sense to buy a common coin whose value |
| pretends he doesn't have change for a twenty, | | | | is based strictly on the official gold spot prices |
| you could get taken. | | | | (plus a markup/commission, generally ranging |
| Gold coins are durable and last hundreds of years. | | | | from 1% to 5%). |
| Alloys (gold with another metal added) can last | | | | One downside to buying coins or small gold bars |
| for thousands of years. They don't tarnish and | | | | rather than large denomination gold bars is that |
| don't scratch easily. They're also easily stored | | | | the markup on gold is often higher the smaller the |
| because of their small size. Many investors prefer | | | | amount you buy. Buying one ounce of gold may |
| to store their gold coins in their homes, stashed in | | | | cost you 5% more per ounce than buying 5 |
| some secret place, unlikely to ever be found | | | | ounces of gold. With the current gold prices per |
| because of their small size. Large gold bullion bars | | | | ounce hovering around $900, that means you |
| require professional storage and security services, | | | | could pay $45 extra if you only buy a single one |
| which costs you money. And obviously the | | | | ounce coin. Also remember that, as with large |
| reputability of the storage provider needs to be | | | | denomination gold bars, there is a bid/ask spread. |
| confirmed. | | | | That means that the price you buy the gold at |
| Coins and small bars are also easy to buy, with | | | | will be different from the price you can sell the |
| reputable vendors existing in basically every major | | | | gold back at on any given day. The buy price is |
| city and also online. So how do you choose which | | | | typically 3% higher than the sell price. So you can |
| gold coins to invest in? There are two things to | | | | see that buying and selling coins quickly to make |
| keep in mind: | | | | quick profits is not a very enticing option. It's a |
| 1) Some gold coins are pure (999/1000 is | | | | much wiser idea to buy gold with the intention of |
| considered pure gold, also known as 24 carat | | | | holding it for security, wealth preservation, |
| gold), but others are only 917/1000 parts gold | | | | longterm investment, and enjoyment. And with |
| (aka 22 carat gold). Both are reasonable | | | | such reasonable goals in mind, gold coins are one |
| investments, and as long as the real weight of | | | | of the best ways to invest in gold. |