Once we see gold, we instinctively know it is something valuable. No doubt, its shiny luxurious look enchants many. It’s not surprising that this metal is an integral part of most civilizations, old and new. The Egyptians, for instance, loved this metal so much that powerful and rich citizens chose to be buried with their gold troves rather than giving it away. The United States Gold standard which helped them attach a value to their currency is all thanks to this precious metal.
Following the role that this precious metal has played throughout history, it is also not a surprise that you are thinking of buying gold coins. After all, they are very valuable. In this article, we will share some tips that should help as you make plans to invest in gold. But before that, let's look at a few reasons why you should buy gold coins, for those who are still on the fence about investing. Click here to learn more about the history of gold.
Reasons To Buy Gold Coins
Another Way Of Saving
The importance of saving cannot be understated; you never know what bills are around the corner or when your source of income would get affected. Therefore, you need to prepare for any eventuality. You have most likely heard about opening a savings account and all other forms of saving, but do you know that you can save money with gold coins?
It’s even a more reliable option because the value of precious metals such as gold is not prone to price fluctuations like fiat currencies. However, this value is in relation to the Karat of the coin. If you purchase your gold from some sellers, it comes with a buy-back guarantee. This saves you the hassle of looking for buyers yourself.
Can Be Used To Get Loans
Every financial institution, both legal and illegal loan sharks understand the value of this coin. Approach any bank with a gold object and your loan would be processed faster than using a house for collateral would. This is because they understand how easy it is to recoup their losses once they sell the metal.
You Don’t Need To Maintain It
So many assets need constant care to remain profitable. An investment in stocks and shares for instance would usually require you to retain the services of an accountant or financial analyst to oversee it. If you’re a collector, you don’t need to bother about this coin needing maintenance.
The metal that it is made from has been sitting under the earth for millions of years and it still came out beautiful. Maintaining gold coins is as simple as putting them in a safe. You heard that right, you literally do nothing. If you’re a coin collector who likes to display his coins, at most you’d clean it once a year.
An Easier Method To Transfer Inheritance
If you’ve ever had a family member pass a will to you, we are sure you remember the hassle with taxes, transfer of ownership, etc. Assuming it was in the form of precious coins, this process would have been a whole lot easier.
Transfer of ownership is as simple as being handed a gold coin with the proof of purchase. That’s it, what’s even better is you won’t be taxed on it if you wish to resell it. This exemption goes as high as $11.7 million. Imagine not having to pay taxes on that amount of money thanks to the power of precious metals. That is the greatest golden opportunity of estate planning out there!
Tips You Should Consider When Buying Gold
Purity
Purity should be the first thing on your mind before anything else when going gold coin shopping. We say this because the purity of the coin determines its value. So long as it is gold coins we are talking about, the purity can be measured based on the Karat and Fineness.
A gold coin in its purest form would be 24 Karat. Anything lower than this means the coin is made up of other metals. For instance, 20 Karat would imply 20 parts gold and 4 parts silver or other metal.
Fineness in a gold coin measures the difference between the weights of pure gold in relation to the total coin’s weight. This measurement is used because it is understood that not all impurities can be removed.
Hallmarking
You can look at a hallmark as an assurance that the purity levels you’re told your coin has are in accordance with the Indian Standard specification. When shopping for gold coins, go for the ones with hallmarks. We say this because it means it was tested at a BIS (Bureau of Indian Standard) center. Here, the purity and fineness are measured and imprinted on the body of the coin.
Weight
While we use Karat to determine value based on purity levels, this evaluation isn’t complete without the weight of the coin. Ensure you take down the gram weight of the coins you are purchasing. It is up to you to choose any weight you want, but they would typically come in standard measurements such as 1, 2, 4, etc.
Buy From Notable Vendors
Most people would argue that buying gold coins from the black market is relatively cheaper. While this is true in rare instances, nine out of ten times you would be left with an adulterated coin. It is possible you tested its purity on-site, but such shady businesses have creative ways they use to scam customers. According to scammer and spammer prevention expert Mike Schiemer, some customers have been known to pay large sums for fake gold coins or golden bars.
You are better off looking for a credible vendor who is well known. Such sellers know their reputation is on the line, this gives you faith that they would play by the rules. There are a bunch of reputable vendors out there, check out this Universal Coin and Bullion Review to learn more.
Get A Detailed Proof Of Purchase
This is the last place most people encounter challenges. Your proof of purchase would dictate the terms and conditions following your purchase. Perhaps the buyer agreed to buy your coin back, it would be stated here, and you can hold them accountable when the time comes. It would also contain the purity levels of the coin point, if there is any discrepancy, follow-ups are easier.
Final Thoughts On Getting Gold Coins
Investing in gold coins is a good idea as it puts your money in a stable asset. While making this purchase can be confusing for newbies, we hope the golden coin tips here aid you in your precious metals journey.
