The idea of investing in gold or silver coins conjures images of the kings and wealthy merchants of childhood fairytales, storing their treasure in easily converted coins and keeping them hidden under the floorboards. Surely there is no place for this type of investment in today’s digital world?
In truth, many investment experts argue that now it is more important than ever to have at least a proportion of your wealth in this kind of tangible asset. Gold and silver are known to be the safest and most resilient of investment types. Of course, it is possible to buy precious metals in the form of stocks, but the whole point of this form of wealth is to have something solid that will withstand even the most dramatic economic turbulence. Given world events over recent years, it is no surprise that so many investors choose to buy silver from Golden Eagle Coins or similar reliable sellers. Here are four reasons coins are still such an important commodity.
It’s real money
Many gold and silver coins are technically still legal tender. True, it is highly unusual to use gold in this way, but it is a valuable feature for those who are concerned about the fragile characteristics of today’s global economies.
An active trading market
Gold and silver bars are fine in their way, and have all the same advantages of coins when it comes to being a safe investment that will hold value. However, there are very few options when it comes to trading them. A gold bar is a gold bar, and will buy or sell at market value. Coins, however, have a far more dynamic trading environment, inhabited by jewelers, dealers and collectors
If you can’t beat ‘em, join ‘em! There are so many types of gold and silver coin out there, you can take advantage of more than just changes in the underlying gold price. Coins are highly collectible, and those that have the greater rarity or desirability will command a premium value. Like any collectible, values will change as fashions evolve, so by keeping knowledgeable about the latest trends, you can make the best of your investment.
OK, so the idea of owning a few one-kilo gold bars might sound attractive, but when they are worth in the region of $45,000 each, you have very little flexibility if you have a sudden need to raise, let’s say, a couple of thousand dollars. A one-ounce silver coin is worth $15 to $20, so the archetypal bag full of those allows you to buy and sell as many or as few as you wish.
Keep it safe
Gold or silver coins are as valuable and important an investment as they have ever been, but let’s close on a word of warning. Keeping the coins under the floorboards is definitely not a sensible plan. Ensure you have somewhere safe and secure to store your investment, and if you do keep them at home, be sure to notify your home insurance provider.