Gold is a precious metal that is prized in all areas of the world used in decorative art, jewelry, and currency. Gold bullion is produced in the form of gold rounds, bars, and coins from precious metal refineries all over the world. When you start investing in gold you are investing in an asset class that has been around since the beginning of civilization. For literally thousands of years gold bullion has maintained its purchasing power even during times of inflation. To that end many investors include gold in modern portfolios because the price of gold will move independently of stocks and therefore during economic downturn provide some high spots and reduce losses.
Is Buying Gold a Good Investment?
If you are considering gold as an investment strategy, have no fear. Buying gold is a great investment and an important part of a diversified investment portfolio. It is, in fact, the most coveted precious metal in the world.
Should You Buy Gold Coins or Should You Buy Gold Bars?
There are advantages to both and making that decision is really based on your budget and your investment strategy. On the whole, gold bars are going to cost less than gold coins of the same weight and purity level- but gold coins offer unique designs that bars do not.
Types of Gold to Buy
In most families, coins will remain for generations. Each recipient will start to realize the value that their inheritance offers especially as the value of certain gold coins increase with time. Gold coins are collectible investments due to their scarcity, design, and demand. Every year new coins are minted which may never be produced ever again. Those coins become increasingly popular with time as demand for them increases.
Gold Bullion Coins
Gold bullion coins can be purchased in a variety of sizes. The smallest possible size being 1/25 ounces and the largest size being one kilogram. You can find sizes that cover every possible size in between. Of course the most commonly purchased size is a 1 oz gold coin which collectors and investors purchase more than any other size.
Some of the most popular gold coins include the 1 oz gold American Eagle, the 1 oz gold Canadian Maple Leaf, the 1 oz gold Krugerrand, and the 1 oz gold Buffalo. Gold coins are a great way to pass wealth on to other generations and they are a highly traded commodity and have always been, which means that the value of all gold coins will continue to grow with time. With such a large variety of options from which to choose not just in terms of size but in terms of design, it is easy for investors of all types to find the gold bullion coins that best fits with their investment strategy.
Gold Bullion Bars
Buying gold bars is one of the easiest, safest, and most cost-effective ways to purchase physical gold. Gold bars will match coins in terms of purity and content and yet they will cost less over the spot price for gold coins because of the way they are produced.
The ‘spot price’ refers to the current market price of that precious metal. The spot price is what you want to aim for when you are buying your precious metals whether they are rounds, bars, or coins. You will probably never pay the actual spot price in the moment that you purchase your items because you have to pay a premium which is the difference in cost between what you pay and what the spot price is. That premium essentially pays for the labor that goes into manufacturing the precious metal into the form that you receive. You don't just receive the gold flakes that come out of the tunnels underground. You receive gold in the form of a hard physical bar or a round physical coin. The labor required to produce those items is covered in the premium you pay. That said you can still focus on getting your premium as low as possible in order to reduce the cost of your investment and tangentially potentially increase the return you can get on the investment when you liquidate it later.
Gold bullion bars are often cast which means the gold is turn into a liquid and poured into a physical cast in order to set. This process is very simple, not as labor-intensive or time-consuming as minting. Gold coins are minted which means that in addition to the casting process they have to be struck with a machine to mint or stamp information on them. With a cast, the information is built into the cast itself so it doesn't have to be put onto each gold bar. For that reason, the cost of gold bars compared to gold coins of the same purity levels and size is going to be cheaper.
That does not of course mean that gold bars are the only investment option that is sound. There are plenty of reasons to pay the slightly higher cost and invest in gold coins. One of the main reasons being the emotional value and unique designs that are offered with coins which are not offered with bars.
Gold Bullion Rounds
Investors who are focused more on the stable purchasing power that gold has to offer will find financial security in gold bullion rounds. These are circular discs that do not have a face value and are not legal tender. They are not nearly as diverse or collectible as coins but they are still perfectly suited for investors who want to use gold to thwart any potential losses brought about by inflation.
You can pick many sizes when you purchase gold bullion rounds ranging between 1 gram and 12 oz. You can find every size in between on Metals.com. The most commonly traded sizes though are 1 oz or less. Scotiabank 1 oz gold round is one of the most popularly traded gold bullion rounds as is the Istanbul 1 oz gold round and the Incuse Indian gold round. Gold bullion rounds are minted to the same standards as gold coins which means they will have the same mirrored finish, clean striking, and detailed design. They will typically sell for slightly less than gold coins in terms of their premium and they are a wonderful way to mix up your gold-based investment portfolio. We offer a wide range of gold products on Metals.com including bullion coins, rounds, and bars that come from respected mints all over the world.
How to Buy Gold
When you are ready to invest in our wide selection of coins, let us know. Buying gold online is perfectly safe when you do it from us: Metals.com. We have been around since 2008, with full accreditation and superior customer service. Contact us today via live chat, email, or phone with any questions you might have.
Reviews from Trustpilot
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“I have been buying precious metals for a few years and ended up shoring up a substantial amount towards my retirement years. However, I wanted more. I wanted access to a wider variety and wanted metals with lower prices. A friend mentioned Metals.com to me and now I have slowed down my purchases with other metal companies because this company offers pristine quality, friendly prices and speedy shipping. As someone who is looking at investing in precious metals and not stocks and bonds for the long-term, this company definitely has my business!”
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