Investing in gold is always a sound option as it protects you from financial crises, including currency depreciation. It is also a more secure way of investment than putting money in the stock market, as when the latter takes a hit, your earnings can be gravely affected.
Therefore, diversifying your portfolio with gold is a must to keep your future secure. Among the many ways of investing in gold—jewelry, gold bars, and gold coins—investing in coins is by far the wisest and most lucrative choice.
Buying jewelry has for long been a tradition in India, so much so that it is the most popular method of investing in the precious metal. However, investing in jewelry involves high making charges; a sizeable 10–35% of the total cost. Later, if you wish to sell the same piece of jewelry, you will most likely end up selling it at a lower rate than what is prevalent at the time, without recovering the making charges. However, the same is not true for gold coins.
Now, coming to gold bars and coins. Although investment in either is always a smarter choice than stocks and bonds, gold coins offer a good many advantages over gold bars. Listed below are the advantages:
- Coins are highly liquid, offer transparency, and promise long-term returns.
- Coins are treated as legal tender and are universally recognized. Moreover, because they are minted in abundance by the government, they are cost-effective and checked for weight and purity.
- Coins make for cherished heirlooms; you can gift them to your inheritors.
- Thanks to their small size and shape, coins can be easily traded. In addition, they can be conveniently cast into something new.
- Coins are available in various customizations—zodiac motifs, royalty motifs, imprints of sports, and for specific occasions. Further, personal sentiments enhance the value of coins for the ones receiving them as gifts or souvenirs.
Conclusion: Having seen how gold coins are far more liquid than gold bars, you now know they have a stronger market. If you wish to add gold coins to your portfolio to provide risk protection to your hard assets, ensure that you buy them from a reputed brand.
Gold coins from a well-known place have a strong resale value, as they are believed to be purer. Dealers generally look to acquire coins that they know they will be easier to resell. Therefore, always buy from a reputed brand and look out for the hallmark stamp and the letter of authenticity when you purchase gold coins.