The stock and bonds markets are not the only places to invest for the long term. The coins collecting market is very active and the gold market has become very liquid. Gold coins collecting is not only a hobby, it is also an investment segment. Here are some of the reasons why gold coins and bullion have become popular investments with some investors:
1. The USA government debt is now in the trillions dollars – having so much federal debt, just like having too much personal debt reduces your value and the value of paper money or dollars.
2. Price inflation in things such as food, raw material and gas contributes to a decline in the value of money, with inflation up, the dollar’s value declines.
3. Stocks and bonds and any other assets that are on paper and backed by dollars may see declining values as the dollar goes down. Gold coins can later be sold for collectors or gold value.
How can you Invest in Gold Coins and Bullion
Before you buy gold or gold coins for hobby or investment make sure to buy only from authorized and reputable dealers. The US government’s mint at usamint.gov provides a list of authorized gold dealers. These are located thru out the United States. The Mint sells current collectible coins.
Be aware of television infomercials selling US gold coins. Many of these are replicas of original gold coins. Replicas don’t have the same numismatic or market values as original coins. The USA Mint has alerts on its website to help investors identify fakes and replicas gold coins.
The most popular gold coins are the American Eagle and the Canadian Gold Maple Leafs. These can be purchased at authorized gold dealers.
Check market prices before buying gold coins in sites like goldprice.org, kitco.com and Monex.com. Using these sites check the current price of gold, generally you should pay less than 10% over the current or spot gold price.
Make sure to invest only part of your portfolio in gold coins and only invest money that you can afford to lose. It is important to understand that no investment is guaranteed.
Foto de USA Mint.gov
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