Why Invest in Gold

Gold is a fantastic investment for troubled economic times. But there is no single accepted view on what form of gold you should own. The answer depends somewhat on the amount of money you are prepared to spend, what country you are from, and how badly you think the economy will perform in the years ahead. Having said that, there are some general considerations to bear in mind. One approach is simply buying the largest amount of gold that you can at the lowest cost available.

Gold Price Evolution in 5 years

If you have a good deal of money to invest, gold bars are a popular choice. People also buy in the form of coins or a mixture of the two. Coins can be more convenient to resell and tend to be more decorative.

For most investors, buying nationally minted gold bullion coins in the one-ounce size is a good solution. Many countries such as the U.S., Canada, South Africa, and Australia offer specially minted national coins containing one ounce of fine gold.

One advantage of buying these types of coins is that they are immediately recognizable around the world. If you should buy some South African Krugerrands, you can quickly resell those same coins on your return trip to the U.S. or anywhere in the world.

Coins also have the advantage of being very easy to store. Since they are smaller than bars, you should find them easier to keep than a large gold bar. They also can be fitted into small, secret places in your home that are too small to accommodate a bar.

An additional advantage of owning gold in the form of coins is that you can easily liquidate only a portion of your gold portfolio at any time. If you needed to raise cash for some reason, you can sell whatever fraction of your portfolio that you wish. If you had only bars, you would be forced to perhaps sell a greater share of your gold than you might like. Having your gold in the form of coins would protect you from an “all or nothing” type of scenario.

One possible consideration when selecting these types of coins is the language they are printed in. If the economy should deteriorate rapidly, you might want to ensure that the person buying from you or accepting your coins as payment understands that language so that there are no misunderstandings. Buying only coins clearly imprinted with the weight and purity of the gold in your native language would be preferable in this type of situation.