Investing in Gold Coins

Buying gold may be much easier than you think.  In times of economic uncertainty, people want a way to protect their assets. Virtually everyone in the country of Zimbabwe is a trillionaire these days thanks to astronomical inflation, but nobody there is rich and nobody wants that country’s worthless currency. Likewise, stockholders remember the accounting scandals that brought down Enron and other companies and reduced their stock values to zero. But for thousands of years, gold, and its “little brother” silver, has been used as a store of value and a medium of exchange–the very definition of money.

Many of you are probably old enough to remember that before 1965, U.S. dimes, quarters and half dollars were made of 90 percent silver. And before 1933, gold coins were minted as well in this country. Since the U.S. went off the “gold standard” in the early 1970s, our paper currency has not been backed by any tangible assets. A dollar bill is worth whatever someone will give you for it, and nothing else. And with the U.S. national debt increasing rapidly, many people are worried about the value of the dollar. But gold’s value has never been zero. An ounce of gold is still an ounce of gold no matter how many wheelbarrows full of paper money the people of post-World War I Weimar Germany had to use just to buy bread–it happened then and many people worry that it could happen again now. Which is why people are buying gold, because they don’t want to be left holding worthless paper.

You might be asking yourself “How can I afford gold?” with prices currently hovering around $1,200US per ounce. Many companies sell “fractionals,” or gold coins and bars weighing certain fractions of an ounce, or even grams. A troy ounce (the unit of measure for precious metals) is 31.1 grams, and not counting sellers’ markup, you can buy a gram of pure gold for just under $39. Your local coin dealer is probably your best source for gold and gold fractionals–walk in with cash, walk out with gold, take it home and put it in a very safe place and don’t let anyone (except possibly your spouse) know that you have it. You can buy a gram of gold a week, and in about seven months you’ll have an ounce of gold.

Some sites and ads say that they will “store your gold for you” in a secure place, but the safest place you can store it is where you can readily access it and where nobody else knows you have it. (Bank safe deposit boxes are a very bad place to put valuables, and the U.S. Patriot Act may also prohibit the storage of precious metals in such boxes.) You can buy gold today, put it in a safe place and know that no matter what happens with the economy, your gold will still be valuable.

There’s nothing like gold.  And there’s nothing like collecting or investing in gold coins. Here are several reasons why you should invest in gold coins.

  1. They are valuable. At this writing, 1 oz of cold costs 1,000 USD, quite a hefty sum for such a small amount.
  2. They are fun to collect. Many countries have their own national gold coin. Their various designs are fascinating to study and compare.
  3. They hold their value. While gold prices rise and fall, as do every other investment, gold has always been, well, the gold standard. People will likely always appreciate the beauty, the versatility and the strength of gold.
  4. They are a link to our past. If you’re fortunate, a grandparent may have given you a cold coin. Imagine being able to pass on such a treasure to your own grandchild in years to come. Or, imagine coming across an antique gold coin and contemplating the places it’s been.
  5. They typically become more valuable during uncertain times. For example, during the 1970s there was a great deal of economic uncertainty. Yet during that decade, the price of gold soared. Likewise, these days, we are also facing many global price fluctuations. Again, the price of gold is rising.
  6. They are beautiful. There’s no doubt about it, gold coins are beautiful to behold, especially when carefully shined up and displayed. Stock certificates are not nearly as impressive as a stack of gold coins.
  7. They are romantic. In these days when pirates are all the rage, there is something exotic about having a gold coin collection like a treasure.
  8. They are easily stored. While many people feel uncomfortable about storing gold coins and other valuables in the house, it is relatively easy to do so. As with any valuable, be discreet about them. Avoid telling anyone you own them and hide them in a spot in which a thief would be unlikely to look. Be sure your coin collection is adequately insured.
  9. They are easy to buy. There are many households that already have a small collection of gold coins, but if yours doesn’t, all you have to do is visit a coin dealer. A reputable dealer will be able to provide information and advice about starting, maintaining and selling a collection. Additional coins are readily available online, but it may be difficult to determine whether the seller is reputable and the coin genuine.
  10. They are respected. Everyone understands the appeal of gold coins. They may look askance at your collection of Elvis spoons or bean bag animals, but a collection of gold coins immediately draws interest. There are many coin collector clubs where people just like you can learn and share information about their hobby.

Why collect gold coins? Why not? It would be difficult to find another investment tool that is collectible, beautiful, appreciated and valuable. It can provide security for those uncertain days ahead. You can enjoy the fact that future generations will admire your collection. Look into buying a gold coin today.

If you are looking for a larger investment, you should consider gold bullion – again this does not need a big outlay as you can trade small quantites.