Guide to Investing in Gold Bullion Coins and Gold Bars
Unfortunately we live in quite dangerous and uncertain times, although to many of us it may seem that times are not as bad as during the World Wars many will argue that today is just as bad, if not worse. If you consider the worldwide threat of terrorism, Syrian war, unstable markets, epidemics, hyperinflation, financial crimes, government and bank insolvencies, as well as tightening controls over your bank accounts during bailouts (now also bail-ins), your lifelong savings are at serious risk if you are ‘married to a bank’.
The western mainstream media that follow a certain agenda do not inform investors of impending financial collapses after it’s too late but the markets as we know may soon fall to unprecedented low levels that will make the 2008 crash of subprime mortgages seem like a prelude.
If you look at what is happening with the world’s major indices in 2016 you will be able to see how quickly things can turn around and change for the worse. The truth is that the Federal Reserve has been printing tons of money and pumping it senselessly into the markets for decades in a desperate hope to prolong the reign of the US dollar, a fiat currency.
It is very likely that your financial adviser won’t tell you this due to the fact that they are schooled to believe in the present state of affairs and their idea of investment is to put more money into the financial markets. They are trained to trade stocks, bonds, futures, etc. so this is what they advise on.
But it is up to you to decide where your money should be invested. You need to decide how to protect yourself and your family from unstable markets and turbulent times. Sure, you can follow the advice of financial speculators and invest money into stocks or currency markets but keep in mind that it is all speculation and your hard-earned money can be wiped off entirely when things go sour or when the system collapses.
Gold is the only asset that has historically proven to retain its value outside of any market speculation. Therefore, it is also the main safe haven for central banks around the world which are claiming and purchasing gold in phenomenal numbers recently, and have been for years.
The smart investor should keep at least 10-20% of savings in gold. The clever investor will keep his/her gold investments in physical gold in an allocated storage.
Investing in gold bullion coins and bars
During the hyperinflation that hit Germany in the 1920s entire buildings could be purchased with with a few gold coins. Although we’re not there yet things can get out of hand very quickly. One big terror attack on Europe or America can pull the stock markets down, wipe trillions off the economy, cause panic, and possibly even a lockdown imposed by a marshal law.
One of the greatest benefits to investing in gold coins or bullion is that it is a physical ownership as opposed to electronic or paper gold, like gold mining stocks and ETFs. In terms of coins vs. bars it’s hard to say because it entirely depends on the individual investor’s needs and things such as:
- the value of your investment,
- length of the investment,
- capital gains tax (CGT),
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Gold coins are issued by various governments. Although they hold nominal value in the country of issue their market value is determined by their gold content. The most popular coins with investors are 1 ounce coins, as well as, half and quarter ounce coins. Bullion coins are not the same as commemorative and numismatic coins which are mainly collected for their rarity and design than their gold content. Bullion coins may grow in rarity value with time.
Bullion bars can be purchased in many sizes up to 400 troy ounces. They usually have the lowest price markup and are easiest to sell because their value is purely calculated on their gold content. There are over one hundred fully accredited gold bar manufacturers scattered across 27 countries. Most bars contain 99.5% fine gold content and are certified by their manufacturer.
How to store your gold investment
When it comes to holding gold there is an old saying that goes if you don’t hold it, you don’t own it, however this depends on the amount of the investment. Gold is quite a heavy precious metal so it doesn’t take a lot of storage to hold it.
The bullion in the photo weighs 12.4 kg and its estimated worth today (Feb 2016) would be about half a million.
Although some people will like the feeling of having their gold stashed away in the house where they live there are important things to consider. Apartments and houses often get burgled and unless you insure your gold to its full value, you might be at a huge loss.
Storing at home larger investments of gold is not recommended because it might pose a serious risk to you and other family members who live in the same house. The last thing you want to do is to endanger the life of those you’re investing for.
If you go ahead and store a lot of gold in your house DO NOT be tempted to tell your friends about it or your children. Remember that the less people know about your gold the more secure it is.
Professional storage solutions
There are many professional storage solutions that aren’t expensive and a some of them can store your gold as low as 0.12 percent per year of your total gold value. In addition with professionally secured storage there are often options to store your gold in other places in the world which operate outside of the jurisdiction of your local government, such as Zurich in Switzerland.
Professional vault storages offer insurance and, although there are certain conditions, you can claim your physical gold at any time. If you can’t, it will be delivered to you.
Where to buy (and store) your gold
This is quite possibly the best time to buy gold in years. Gold is now down to the 2010 levels and many industry experts claim 2016 will see gold reach new highs.
If you go to your local gold dealer on high street you will notice that their markup is very high. If you go to a cheaper outlet you might be scammed. When it comes to buying gold nothing rings more true than the saying if it’s too cheap then must be fake. There are countless of stories where people got ripped off because there are many ways to cheat gold buyers.
Therefore the best sources for your gold will be the sources that have been repeatedly tested by thousands of committed buyers and sellers. Companies that have been trading gold successfully for many years with good user reviews will are unlikely to risk their entire business and sell counterfeit gold to their buyers.
Recommended services for gold buying and storing
BullionVault.com – International gold and silver marketplace with very good prices, low commissions, insured vault storage in Zurich, London, New York, and/or Singapore. Very low storage annual fees from 0.12 of total value held in storage.
Here are some testimonials from known networks such as MSN Money, MarketWatch and Daily Telegraph:
Goldbroker.com – Bullion coins and bars, home delivery, secured vault storage outside of the banking system. An independent company issues a storage certificate in your name to confirm gold value and presence. Gold storage in Zurich, Singapore, New York, Toronto.
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