Gold coins do not offer the purchasing flexibility of gold bars. The cost of minting, design, distribution, and even the marketing costs are all tacked onto the price of gold coins. On the flip side, gold coins are often more challenging to secure than gold bars and demand a higher premium. If the price of gold increases, then you will still see an increase whether or not the coin is a collectible. If you purchase a gold coin that becomes highly collectible, the value could grow exponentially. Collectible gold coins have an excellent chance of growing in value quickly, either in the collector avenue or in the spot value of the gold content. Unlike stocks and bonds that are non-tangible investments, you can see and touch gold coins whenever you want a reminder that you are in control of your wealth portfolio. The owner will have physical control of their investment vehicle. A few other benefits and drawbacks of gold coin investing include: It is more affordable to build a collection this way if you do not have lots of cash to throw around. The advantage for gold investors starting with gold coins is that they represent smaller ounce sizes than bars. Gold coins also typically come with a bigger premium than gold bars. For example, gold coins have a higher premium when they include intricate details or artistic qualities that may push up minting costs. “Premium” is common gold investment terminology describing the amount a buyer will pay above the spot value of the gold weight in the coin or bar. This feature affects the premium that you pay for the gold coin the more collectible the coin, the higher the price. Coins represent an investment in the gold itself but also harness the artistic nature of the piece as part of an even more valuable collection. The collectability of gold coins is normally the main attraction for investors beyond the melt value. Let’s look at each option, including some of the benefits that you might find reflected in the pricing details.
If you are trying to decide whether to move into gold, there are a few other crucial things you should know about gold bars that have nothing to do with the price. New investors want to know how much it costs to invest in a gold bar, but this is only one of the factors to consider if you plan to build a nest egg of this precious commodity.įor example, a novice gold investor will frequently see the term “melt value.” This term refers to the precious metal content of a gold piece, so melt value determines how much gold would be left if you were to melt down your bar or coin.
Gold bars seem to be a favored investment vehicle for today’s gold investors, with the added value of being sold as close to the melt value as possible. You have primarily two options for investing in gold-official gold coins or a range of gold bars or bullion. Gold investing is at an all-time high, but how much does a gold bar cost on average? That’s not an easy question to answer, but as more investors choose to buy gold as a hedge against inflation, it might be more relevant than ever.
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