Choosing Gold Coins and Bars

If you’re considering precious metals as an investment strategy, then you’re already on the right track to financial security.  Most financial advisors will warn you that precious metals are best when used in conjunction with other investments, and they perform exceptionally when you keep them in your portfolio for the long term.  The history of gold prices will show you that your gold will likely continue to appreciate in price for the next several decades, even if it is currently at the highest prices ever seen.

If you decide to make gold purchases, you will have the choice between several different forms.  Some decide to invest in gold futures, but you may find you prefer to have the physical gold on hand.  After all, you can’t benefit from the value and price of gold if you don’t actually own it.  This means you can choose between gold coins and bars.  Understanding the small differences between the two will help you make better decisions, though either will be solid choices for your investment portfolio.

Those who are determined to hold onto their gold for several decades often choose gold bars.  After all, the gold will do nothing but sit there and continue to earn a profit for you.  There is no reason to worry about the appearance of the gold or the methods that went into minting the bars.  When you choose gold bars, you will likely only be concerned with the weight and purity of the gold, while gold coins require a bit more thought.

Gold coins are minted by several different countries, but most concentrate on those made available by the United States.  These bullion coins are guaranteed to contain the same weight and purity of gold in each coin, which means that buyers and sellers always know exactly what they’re getting when they complete transactions.  This makes trading in gold coins a bit easier than trading in gold bars.  You must remember, however, that minting the coins is a bit more involved than the bars.  This, added to the fact that there are a limited number of coins pressed each year, means that your coins will have a higher premium than bars.  Investors find that this higher price is easy to deal with because they can gain that back when they sell the coins.  If you plan to buy and sell for short-term investments, coins may be the better choice for you.  

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