Investment

5 Things to Consider While Investing in Bullion Coins

iInvesting in bullion coins

Small-time and big-time investors are always looking to diversify their investments portfolio. Having a handful of them means you’re protecting yourself from economic crisis and stock market fluctuations and in this day and age, the market has been in a volatile whirlwindsince the global financial crisis in 2008.

But the biggest question investors are always in constant battle with is: Is investing in bullion coins lucrative? In general, investments are never a sure-fire way of doubling or tripling your money. But a smart investment should be something that will retain its value over time like – bullion coins.

Why go down this road? First off, bullion coins are a great hedge against inflation. For some of you who might be novices in this area, gold tends to increment when other investments are on the skids. Also, take a look around you, gold and silver are two metals ubiquitous in industrial and domestic usage. So you can be sure you’re getting a bang for your buck because these precious metals are far from getting wiped off. Lastly, in a time of a financial catastrophe, you can definitely use gold and silver to buy and sell while retaining a lot of their value.

Before taking a huge step in investing, it’s vital to do your research first. Ask someone who has expertise in numismatic coins. And consider these 5 things while investing in bullion coins.

Which Bullion Coin Should You Buy

The first step in investing is to figure out which coins suit your budget and preference. The three most popular coins for investments are the american gold eagle, Canadian Maple Leaf, and South African Krugerrand. Let’s take a look at some details so you’ll know which one is perfect for you:

  • American Gold Eagle

This is a favorite in North America. This is an excellent coin to invest in because it is backed by the US government. Although it has a narrow spread between the buying and selling price, it’s considered the most liquid coin in the US.

  • Canadian Maple Leaf

With the inception of this coin in 1979, the Canadian Maple Leaf has been a popular choice for gold investors all around the world, specifically in India and Asia. Contrary to the American Gold Eagle, this coin has high purity and competitively valued.

  • South African Krugerrand

This coin is the first gold coin popularized in the modern times. This has been introduced long before the American Gold Eagle and Canadian Maple Leaf coins came about. Until present, this is a very common gold coin in the world so it’s a famous choice for gold investors. The downside is this coin may not be as liquid and as pure compared to American Gold Eagle coins.

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2. Beware of Counterfeit Bullion Coins

With the rise of bullion coins’ investments, some fake coins have also been distributed from China. And with an inexperienced eye, it might be hard to tell the difference! Make sure you don’t just jump right in without consulting the right people. Ignorance is not an excuse and will cause you a lot of money if you get scammed.

 3. Timely and Safe Delivery

This is an essential part when buying bullion coins. Most shipments will take around 10 to 15 days. Anything more than that is suspicious. USPS is prevalently used as the courier service for bullion coins because of safety and insurance.

4. Choosing the Best Dealer

There are two preferable dealers for bullion coins, an online or local dealer. Although the latter provides buyers with a sense of security negotiating in a brick-and-mortar- shop, the former is a famous option for some because it offers a lower price. Just make sure you don’t fall into the hands of untrustworthy dealers, you can check reviews online to know more about them.

5. Where Should You Store Your Bullion Coins

You can store your bullion coins in two ways: at home or at a bank safety deposit box. And I don’t mean just putting it in your drawers, but it’s a smart idea to invest in a vault to safeguard your bullion coins. Also please don’t try to get on the bandwagon and post “unboxing videos” of bullion coins like what others are doing on YouTube.

About Ajeet Sharma

My Name is Ajeet Sharma Financial Blogger & Founder of Financegab.com. We are a personal finance blog dedicated to personal finance & financial planners. The main aim of this blog is to help people to informed financial decisions.
View all posts by Ajeet Sharma →

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