Over the past forty years, the stock market has risen in value 12x, oil 25x, and the value of gold 35x. Figures like these tell us that investing money over the long term to preserve and multiply capital is most profitable in the precious metal. You can buy it in an impersonal form (to open a metal account in the bank), by ingots, but you have to pay VAT when making the transaction, or you can buy investment coins.
Advantages of investing in coins
Firstly, you can start investing in precious metal coins with a minimum amount. The price starts at a few dollars. Secondly, all investment pieces are small in size, so you can really hold a fortune in your handful. Thirdly, investment coins are easy to sell with the help of The Pacific Precious Metals, there is always a demand for them. Finally, sometimes the value of a coin is undervalued for purchase. This happens when the mint that minted it underestimates, or due to the fact that banks do not change the value of the product immediately, as soon as the metal quote increases on the market, they work with this product on a long currency position. By purchasing such a piece, a large premium can be gained over time.
The best coins to invest in
When you want to invest in precious metal coins, you need to understand that they come in two types — investment coins and commemorative coins. The former is a piece of precious metal of a certain mass encased in the form of a coin. Such pieces are issued in large circulations and have no numismatic value.
The latter are minted for anniversaries and commemorative dates. They can be made in quantities ranging from hundreds to several thousand copies. The price of them is determined by their demand among collectors, but as a rule, it is higher than that of investment copies of the same weight. Investment in commemorative coins does not guarantee a steady increase in value, but with the right set of circumstances, are able to bring a good income. The main indicator that determines the profitability of your investment is the difference between the buying and selling price – the spread.
What gold coins are better to buy for investment
Products from different countries may be of interest to someone who travels, which allows the probability of selling copies abroad. For such people, investment in gold coins, according to professionals, is better to do, buying foreign specimens. Experienced investors give preference to samples issued by the mints of Australia, Austria, South Africa, America, and Canada.
So among the most interesting specimens, we shall name the gold banknotes of 0.9999 proof:
- Australian kangaroo (one or two troy ounces).
- The Chinese Panda (0.25, 0.5, 1 troy ounce).
- “Vienna Philharmonic (0.5 troy ounces).
- “American Gold Eagle Coins” (1/10, ¼, 1 troy ounce).
- Somali “Elephant” (1 oz.).
- American Buffalo Bison “Buffalo” (1 troy ounce).
- “Growling Grizzly,” Canada (1 troy ounce).
A few rules to follow that will make investing in coins more successful
- You shouldn’t take the specimen out of its packaging.
- When surrendering a precious metal coin to a pawn shop, it will be accepted at scrap value.
- One large coin is more valuable than several small ones; it is easier to sell.
- Before crossing the border with expensive goods, find out the customs regulations of the country of departure and entry.
- It is better to buy and sell pieces through the POS. In banks, the purchase price may be lower, but the sale price is higher.
- According to the predictions of the guru of the investment market, gold will continue to grow and break records. This means that by investing in investment gold coins, you can not only protect your money from inflation but also make a profit.