The recent recession has brought into the investors’ attention a new type of asset that is gold. More and more people choose to invest in gold coins as a means of protecting themselves from future hardships. This is understandable if we consider the benefits: gold is not affected by inflation, deflation, stock market weakness and potential currency problems, not the mention the fact that you do not have to be constantly on the lookout on what is the best buying price, because gold is always a smart investment.

However, before going out and buying your gold coins there are some things you should know. First of all gold coins are kept as a store or investment value. Investment coins are coins that were minted after 1800 and which have a purity of no less than 900 thousand. They are available in various weights, usually in multiples of fractions of 1 troy ounce, but there are some others, which are produced in limited quantities which are heavier. Another aspect that you should know is that gold coins can be either contemporary or historic, minted before 1933, meaning that they have historic value.

Another important aspect that is worth mentioning is that you should go and consult a specialist in this domain before considering such an investment, because this way you can find out a lot of useful things which might make the difference between a smart and a poor investment. For instance, experts say that there is no such thing as the best time to buy gold because you can do it anytime you want since the gold market is much more stable than that of shares.

Thus, you do not have to wait for the right moment when the price is just right to go out and purchase your gold. The rules that apply to buying shares simply do not apply in the case of purchasing gold. Another advice from the experts, besides not following the price is to decide on the percentage of your income that you want to invest. The general rule of thumb is to invest somewhere between 10% and 30% of your portfolio in gold.

The third advice would be to decide what is your goal now that you have decided on the percentage you would like to invest. If you want to capitalize on price movement than you should go for bullion coins. On the other hand, if you are considering long-term asset preservation and have additional concerns about capital or monetary control, then you should opt for a combination between the lower premium variety of pre-1933 coins and gold coins. This will insure a higher degree of safety due to the fact that pre-1933 coins are considered historic items, which will confirms once again their value.

All in all, in times of crisis investing in gold coins seems as a very good idea given the advantages presented above. However, before doing this it is advisable to consult an expert who will give you the best advice on the percentage you should invest and why not on the best option for you. So if you want a safe long-term investment then gold coins are the way to go.

    Posted in Investing from Investor on 22. Mar. 2011