With the postmodern rush for gold, the opportunities and means of saving and investing in precious metals have implicitly largely expanded. People can now choose from direct ownership of bullion bars and coin, numismatic coins or boutique jewelry to indirect gold assets and speculations like junior and senior gold stocks, mutual funds, pension accounts, gold futures and options, etc.
Physical possession is undoubtedly the most secure method to substantiate your wealth or build-up a fairly impressive financial portfolio. However, investing in bullion bars and coins essentially differs from investing in numismatic gold coins and boutique jewelry. This distinction is best illustrated by the basic variation between bullion coins and gold coins. Here are some highlights.
The value of bullion coins resides in their mass and purity (99,9 % being the greatest fineness available), whereas the worth of numismatic coins is influenced by a whole series of factors, more or less subject to speculation. Some of them are: the age of the coin, its rarity, origins, design, craftsmanship, condition, and, only secondarily, the content of gold.
On these lines, it seems natural that the price of a bullion gold ounce is universally recognized and clear-cut, but the value of a numismatic coin requires specialized assessment for a correct identification. Consequently, purchasing bullion coins is much easier, safe and affordable for the broad population, while numismatic gold coins address a specific market field, which is of collectors. Another significant difference between these two types of gold coins consists in the return potential. Numismatic coins display the prospect of faster and more significant gains, but likewise losses. On the other hand, bullion coins aim at preserving value throughout troubled or quiet times.
If in the past the focus in gold investing was directed to boutique jewelry and numismatic coins, now the hubs has shifted towards solid, real value assets that are not subject or less liable to speculation and geo-political factors. Bullion coins are an ideal investment and saving means because they are tangible assets, non-prohibitive, easy to transport, store, trade, and sell back. Furthermore, high purity coins can be easily melted and re-shaped in other type of coins, bars, ingots, or jewelry. Altogether, the real value and versatility of gold bullion is unrivaled by any other commodity or asset on worldwide scale.
Source by Jack Wogan
What Is The Difference Between Gold Coins And Gold Bullion?
A big topic among coin collectors and investors is about whether it is more beneficial to purchase bullion or numismatic coins. The die-hard collectors might say numismatic, whereas professional investors would pick bullion any day. Kenmole
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