Buy Gold Bullion - A Better Investment Than Rare Gold Coins?
Gold coins are of special interest to coin collectors for three primary reasons. First, gold has a long history as the main monetary unit of exchange, and the importance of historical events in which gold or gold coins had a big role. Second, minted gold coins have both aesthetic and artistic appeal. Third, gold has a role in today's economy as a very functional, financially liquid store of monetary value. Indeed, US gold coins are still being minted and sold by the American government.
The initial minting of golden coins was done in the middle of the Sixth Century. They were the main currency from then to the late Twentieth Century. The Great Depression, which took place throughout the globe in the early 1930s caused nations to change over to monies that were worth little more than the materials that went into them, like paper and inexpensive metals. The United States stopped putting out U.S. gold coins sometime during this period.
Generally, most people are attracted to gold jewelry because of the beautiful color, shine, and malleability. For many of the same reasons, those same features make us gold coins very attractive to collectors. Additionally, the designs printed on the coins can provide a unique opportunity to learn about the world's history, not to mention their artistic beauty.
Gold bullion coins are gold coins which are collected for their monetary value. From ninety percent to almost one hundred percent gold by weight, bullion coins contain a very high percentage of gold. Because the value of gold in the modern economy fluctuates around many hundreds of dollars per ounce, gold coins represent a dense store of monetary value. Like other metals such as silver, gold is considered by investors to represent a hedge against the inflation of intrinsically worthless currency.
Besides a hedge against inflation, many investors store part of their net worth in metals such as gold to hedge against another Great Depression. These investors argue that modern currencies of no intrinsic value would also lose their value as a unit of exchange. In this line of reasoning, gold coins would gain in value as a unit of exchange as people fled banks and many classes of investments for a safer haven in which to store their wealth. Over thousands of year, unlike paper currency and stocks and bonds, gold has never once lost its value as a unit of exchange.
It doesn't matter why you are interested. There are numerous books and websites that have information you can learn about numismatics and gold bullion. Both online and in the "real world," there are unscrupulous dealers. However, there are lots of dealers with great reputations where you can buy gold bullion or buy gold coins without fear.
Learn more about US gold coins at the net's premiere site covering everything related to U.S. gold coins, US-Gold-Coins.org. Whether you're seeking to buy gold bullion or buy gold coins, everything you need is here including current spot gold price prices, gold related videos, and of course, our US Gold Coins Blog!
Published September 4th, 2008
Filed in Hobby