Why buy gold gram bars instead of gold coins
Gold coins are sure to be collectible items and limited in quantity. At what price?
A lot of people seem to only buy gold coins. This article will explain you
what is the motivation behind what those collectors are doing and why
it's likely to be short lived speculation.
What are gold collector coins?
Gold coins are coins beautifully designed with a collector's market resale
value.
Often when buying gold, you will hear the advice that you should prefer
investing in collectible coins and that they stand to gain more value than
regular gold bars.This could end up being a great advice, in a few specific
occasions. What those people are more likely doing, is trying to take care
of their own investment first before yours. They are referring you to enter
a speculative gold market where you either stand to lose money on
your purchase if the collectors devalue a specific one and where in some
cases the opposite could happen and you will gain. My question is, why
would you want to speculate with real physical gold? This is a short selling
mentality that is literally the diametric opposite of saving in gold bars. Lets
put it that way, yes any specific mintage is limited, but every new collection
minted is then also affecting how loaded the market is.
Speculating is in short terms trying to make quick money on something that may or may not be there in most cases.
Most flaws of buying coins are also related to the fact that they are issued by the
state. You are dealing with legal currency in law's terms and they have a dollar value
directly attached to them that could be enforced. Want to spend more time at the borders? Gold coins count in your allowed money. Forget bringing cash and a lot of them at the same time. Bars are a commodity and in counter part, they don't ring any bells to any border officer.
Gold itself has been a very valued asset on the markets. Seen as the best hedge against inflation, has the benefit to protect your savings against devaluation of currency. Gold is a commodity, it is used for many products we use daily in our lives like computers. It doesn't have to be engraved by artists to be worth something. You should disregard any advice about buying any kind of limited supply coins or anything like it. Buying gold grams is now a new way to buy gold in affordable and divisible amounts sure to beat what coins could offer you in the larger case scenario of you going wide on the plan.
My last point is... security!
While gold is now more and more counterfeited, I strongly suggest you to bet on the security measures put in place in the gold bars instead of a gold coin that could come from anywhere and could be fake. Stamps, serial DNA and seals are the way of the future! Even the some dealers buy fakes and don't realize it, you are better to be safe than sorry!
While some speculation could end up bringing you some profits, some others like winning on a large scale scenario. Why not? Since we are dealing with the only
asset that never touched 0$ in human existence. Find gold in large supplies and don't value an artwork over an other. A collectible will always be a hobby and not a business.
Thank you for reading this article, I hope you enjoyed it!
