Buy Gold Coins and Investing Options

According to MoneyWeek, “Gold has been valued since the dawn of civilization. Unlike most investments it doesn’t pay a dividend or any form of income. It’s best seen as a hedge against financial instability.” Investors buy gold coins and bars, in addition to investing in gold shares, futures and options.

How to Buy Gold Coins

There are different types of gold coins with varying weights available in the market. For instance, proof gold coins are minted for special occasions and they appeal primarily to collectors and numismatists. If you want to buy gold coins that are proof in nature, you have to pay a premium price. Investors have options to buy gold coins, such as 1 oz South African Krugerrands, American Eagles, Canadian Maples, British Britannias or Australian Nuggets. One may buy gold coins through mints like the US Mint, UK Royal Mint or Australian Perth Mint. Alternatively, you can also buy gold coins from local gold coin dealers like ITM Trading.

Investing in gold through coins and bullions may be a good option these days, according to a MoneyWeek article published on June 19, 2010. After touching record highs at $1,260/oz, due to the uncertain economic scenario in Europe and the revision of its estimate of its gold reserves by Saudi Arabia’s central bank, "central banks are keen on the metal after two decades of selling" bullion, according to Javier Blas, commodities correspondent, FT.

The long-term outlook of gold is compelling, says MoneyWeek. According to David Rosenberg of Gluskin Sheff, gold could reach as high as $3,000/oz. According to GoldPrice.org, your strategy should be to buy gold coins and gold, and store it yourself. Alternatively, you can invest in bullion bars.

Buy Gold Coins – The Case of Gold Bullion

Physical gold is a tangible asset and a “bedrock” asset in most portfolios, according to James Turk, founder and chairman of GoldMoney. It is the ultimate “safe haven” and does not carry risks, Turk adds. According to Mark O’Byrne, a director at international bullion dealer GoldCore, investors are recommended to buy gold coins or bars, such as American Eagle or Canadian Maple Leaf. Of course, nothing can beat buying and storing gold yourself or having someone store for you. There are various companies that would store your gold for you. Your commodity will be fully insured and stored in strong vaults.

Buy Gold Coins – The Case of Gold Futures

Gold futures are an option if you are not interested in owing the commodity. However, according to Dale Doelling, chief market technician at Trends in Commodities, if you have a limited capital pool, gold futures are not cut out for you, as they come with high risks and are only recommended for experienced traders. Futures do offer tax advantages compared to other investment options. According to Williams Gamble, president of Emerging Market Strategies, gold ETFs are viable opportunities not only for portfolio diversification, but also short sell.