Gold coin investment – safe or not?

Investment in gold, be it any form, is always an intelligent decision, as it offers the promise of long-term returns. Unlike plain currency, gold is a stable investment, especially when the country is going through an inflationary period.

Investment in gold, be it any form, is always an intelligent decision, as it offers the promise of long-term returns. Unlike plain currency, gold is a stable investment, especially when the country is going through an inflationary period.

By adding gold in your portfolio, you also protect yourself from currency depreciation. Therefore, gold-coin investment is by far one of the safer ways of investments.

Here are the key reasons for why investing in gold coins is more secure than investing in other forms of gold.

Jewelry vs. coins: Gold Coins are a far more profitable investment than jewelry. We all know that jewelry incurs hefty making charges, which makes it unfeasible as an investment option. Secondly, you wear jewelry on very few occasions that are scattered across two to three years.

Moreover, it is subject to trend changes every few years, which calls for recycling or reselling. And, when you look to resell it, you find that the making charges that you incurred while purchasing—10% to 35 % of the total cost—cannot be recovered. Gold Coins, on the contrary, do not lose their value easily. Also, they do not have any sentimental value attached to them, unlike jewelry that is generally difficult for people to part with during financial crunches.

Surely, you wouldn’t want to sell a necklace gifted by your mother or a ring bestowed on you by your significant other.

Bars vs. coins: When it comes to a comparison between gold bars and gold coins, the latter have a host of advantages over the former. Not only are coins given a legal-tender status, but are also universally accepted. Moreover, they are mass-produced and hence competitive in rates as compared to bars.

Coins also offer higher liquidity and transparency, and can therefore be stashed away conveniently. In addition, they are easier to trade, courtesy of their small shape and size.

They can also be presented to younger generations as a family heirloom, unlike bars that cannot be easily split when sharing. In worst cases, coins can be bartered for food and other basic requirements, as their weight and purity are guaranteed by the government.

What’s more, the rise in the trend of gifting gold coins has given rise to many firms that sell customized gold coins online or at brick-and-mortar stores.

Customized gold coins also make for ideal gifts. You can choose from a large variety that different brands offer: designs of zodiac signs, motifs of historical monuments, inscriptions of festivals, etc. Further, you can gift coins to a dear one on specific occasions, and take him or her by a pleasant surprise.

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Jewelry
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