Gold coin collecting is a hobby that has been enjoyed by people around the world for centuries. While some collectors invest in gold coins because of their potential financial value, others simply appreciate the beauty and history of these coins.
Whether you’re just starting out in this hobby or are looking to add to your collection, here are a few reasons investing in gold coins instead of jewellery can be a wise decision.
Both gold coins and jewellery are popular investment choices, especially in uncertain economic times. However, when faced with a choice, it would be wiser to go for gold coins. Here are some reasons:
5 reasons to invest in gold coins
Gold coins are a more secure investment
Gold coins often increase in value over time, while gold jewellery may not. Gold coins can be stored for many years and their value usually increases with time. The value of gold coins does not depend on fashion trends and changes with time.
Gold jewellery as a commodity has value as it is tangible, but its value is largely determined by market conditions and that makes it more volatile than gold coins.
Gold coins have an intrinsic value
They are made from pure gold whereas for jewellery to have much value, it has to have precious or semi-precious stones inlaid. A gold coin can be melted after some time and the metallic value returned while for jewellery, the scrap value is negligible.
Gold coins can be sold quickly and easily
There are a number of gold buyers who would be happy to purchase them from you, and if you choose a reputable company such as City Gold Bullion as the Brisbane gold coins dealer for you, you are assured to get the best price.
If you live elsewhere, all you have to do is search online for a dealer near you. Meanwhile, gold jewellery can be a cumbersome product to sell and the transaction costs are high.
Gold coins don’t require much maintenance
Gold jewellery has to be polished from time to time using specialised equipment. The wear and tear of owning a piece of jewellery can eat into your returns over time as you may need to take it in for polishing or sell it before it reaches this stage.
Many investors prefer selling gold coins
Often, investors who wish to sell their gold prefer selling it in the form of coins as these are easy to deal in and can be traded quickly. Gold coins are easier to store and transport than gold jewellery, given their smaller size and negligible weight.
When it comes to investing in gold, a lot of people automatically think of buying jewellery. However, the above-mentioned reasons are just a few things that tell you why you might be better off buying gold coins instead.
In spite of the above advantages of gold coins over jewellery, there are still investors who choose gold jewellery over gold coins as they are most comfortable with buying from a recognised brand name or from a well-known jeweller. They may also be interested in aesthetics. Gold jewellery can come in exquisite designs that you can wear to special occasions.
Whatever your choice is, both gold coins and jewellery are great additions to your investment portfolio.
