Which Gold Coins Are Best to Buy?
Investors are inclined to buy gold coins as an investment as gold is treated as a hedge against inflation. But the issue they face is which gold coins are best to buy.
Well, when it comes to decide which gold coins are best to buy, it is largely a matter of personal choice. Some may like to collect and retain coins with historical significance as an investment while many are prompted to buy coins just because of their attractive looks. However, the fact that you are buying for the purpose of investment can’t be ignored altogether. So, you should look for coins that offer maximum value for your money. Here are the factors that affect value of gold coins:
Purity and weight: Undoubtedly, the most significant feature when thinking which gold coins are best to buy is the purity of metal and its weight. It is not difficult to assess these two factors in case of gold bars that come with these specifications clearly marked on them but it is not so in case of gold coins. A bit of research is often required to know the purity of coin and its weight, which is not difficult to know. On multiplying the weight with its purity you get its gold content.
Include hidden expenses: When calculating the ultimate cost of a coin, you need to take into account other associated expenses too. For instance, you would need to pay taxes and transportation charges etc.
Calculating cost per ounce: Since the unit of measurement for gold is ounce, you need to determine per ounce cost of gold contained in the coin. So, determine the weight of coin in ounces and divide the cost of procurement by its weight in ounces to arrive at cost per ounce. For example, if the coin weighs three ounces, you’ll need to divide its ultimate cost by three to know per ounce cost of gold that the coin has. The best coins would naturally be the one having minimum cost per ounce.
Miscellaneous factors: Apart from the above mentioned factors, there are other factors too that affect the price of gold coins. The most significant of these is the mint which produces coins. Government owned mints are most regarded. Another factor is rarity or age of the coin plus its physical condition. At times, it may be desirable to pay a bit more for coins having any of these or such like features.
The above information should help you deciding which gold coins are best to buy.