Buy Gold Coins: Why Everyone Should Invest in Gold

Investing in gold coins is something everyone can — and should — try to work into their portfolio. The reasoning for this is found in the flaws in stocks, bonds and many mutual funds. Also, gold is a great inflation hedge, and is a much more private investment than most other investments.

In this article, we’ll discuss why investing in gold coins is a smart idea, and why you should consider it.

The Problem With Stocks, Bonds and Many Mutual Funds

If you are an investor, then you will most likely have stocks and bonds and a few mutual funds in your portfolio. There is nothing wrong with these types of investments, except that you will have to pay the associated fees in order to have them.

The other side to this type of investment is that they do not have any privacy, because fund companies are required by law to disclose any earnings to the government. If your fund increases in value say 15 percent or so in a year you will have to pay tax on it and report this income on your tax return. If you are involved in a tax deferred account such as a 401k plan you will have income, but it won’t start to be taxed until you start with drawing from it.

Now you have a situation where when all the baby boomers start to withdraw their income and it is bound to affect the markets most likely in a bad way. These type of plans are a great strategy if everybody is buying but once everybody starts withdrawals things are bound to get tricky. One analogy would be, if you were to buy holes in a ship eventually the ship would sink. That’s when we come to the benefits of purchasing gold or gold coins.

Benefits of gold investment

There are literally dozens of economic and financial reasons to invest in gold, but here are the two more relevant reasons appropriate for this basic introduction:

Hedging. Gold does not get affected in the same way as the markets. In fact it often goes in the opposite way of the markets and the value of the dollar. In other words when the value of the dollar falls and when the stock values go down, gold value goes up! This is what makes gold a recession hedge.

Privacy. If you buy gold using cash only, the transaction will be private and will not have to be reported. Gold coins especially rare coins can be held privately and sold. In the long run gold coins almost always increase in value. They should be kept in airtight containers to keep them looking fresh and new. Therefore it is always a good idea to keep some gold in stock so that you have something to fall back on.

Want to invest in gold? Then keep researching the topic and you’ll find more reasons to go ahead and buy the precious metal.

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