4 Gold Coin-Buying Secrets from Veteran Investors

Straight Study

Bullion CoinsBuying gold coins is one of the best ways to diversify your portfolio and create a haven for your finances.

Not only gold is an investment that lasts forever, but it is also a precious metal that is easily liquidated and quickly transported. You also have the option of buying gold bars, but gold coins allow you to be more flexible if you’re thinking of selling a portion of your investment.

And contrary to what many people think, investing in gold is not limited to wealthy aristocrats. In fact, most gold investors are the type of people you didn’t realise would invest in gold – your dentist, lawyer, university professor, and the like.

If you are thinking of investing in gold as well but don’t know where to start, the following will help.

1. Start with bullion coins.

The majority of people buy gold only to create a financial hedge. If you are like them, your best bet is to buy bullion coins from Atkinsons Bullion, which are manufactured and often guaranteed by governments. In the UK, a good option is the Britannia, which has a face value of GBP.

2. Avoid rare coins.

Also called numismatic coins, these coins cost more above their face value because of their rarity and condition. Unless you plan on becoming a gold coin collector, and unless you have done a lot of research on certain coins you are interested in, it’s not advisable for you to invest in numismatic coins.

3. Go to a reputable dealer.

Do not fall for shopping centre salespeople trying to convince you into buying their gold coins. And do not even thinking about using gold vending machines. Always go for a reputable dealer with a proven track record and the willingness to answer each of your questions.

4. Buy at the lowest premiums.

Because coins have a premium pegged above the spot price of gold, you can easily compare prices among dealers. Experts recommend not to buy anything that is priced at a 5% premium over the spot price. Also, do not try to buy gold on eBay, as you can get caught in a bidding war and end up paying exorbitant premiums.

Experts recommend investing somewhere around 10% to 30% of your portfolio in this precious metal, depending on how optimistic the outlook is. In times of economic anxiety, it certainly pays to invest in gold.