Which Gold Coins to Buy For Purpose of Investment?
Which gold coins to buy for investment?
Ans:- There is little doubt that investing in gold has certain definite benefits, thus prompting many investors to buy this precious metal in the form of coins. But, it’s critical to decide which gold coins to buy. That would depend on what your expectations are from such an investment. An enthusiast collector of coins would look for a coin having historical significance, while someone likes buying something with exceptionally appealing looks. But on the whole, the ideal coin that one can buy for the purpose of investment is something that offers value for money. So, one need to consider the following factors while buying gold coins as investment:
1. Purity and weight are the two most factors that add value to gold coin. So, you need to assess its weight and also its purity. Though it is a normal practice for most gold bars to have these features marked on them, it is not the case in case of coins. However, it’s not too difficult to know the purity and weight of gold contained in a coin. On multiplying the two figures, you get the content of gold the coin has. For instance a coin weighting one ounce and 0.999 percent pure means its gold content is one ounce.
2. Include additional cost: While estimating its cost, you need to include the hidden expenses like taxes and shipping charges etc. You get the actual cost of the chosen coin only after adding such expenses to its original price.
3. Calculate the cost per ounce: On dividing the final cost by the content of gold, you get per ounce cost of gold. Make sure that you take its weight in ounces. You may need to convert its weight in ounces if the same is in any other measure. If the coin weighs three ounces, divide the cost by three and in case it is just 1/10 ounce, divide its weight by0.10. Obviously, you will prefer buying coin having minimum cost per ounce.
4. Consider elusive characteristics: apart from its gold content and weight, another factor that affects the price of coin is the name and status of the mint where it was minted. Coins minted at government owned mints are the bust buys generally. Then, you also need to consider how old is the coin and also its physical state. Some such factors make it worthwhile to pay more for a coin than its estimated per ounce price of gold.
On taking note of the above factors, when considering which gold coins to buy, will surely make it worthwhile to invest in a coin you may be inclined to buy.