Should I Purchase Bullion or Certified Coins?
When investing in gold, you will have the opportunity to purchase gold in many different forms. Two of these include gold bullion and certified gold coins. Both are a great way to invest in gold to help you hedge against inflation, protect your retirement savings, and diversify your portfolio. Investing in gold takes little-to-no experience or knowledge, making it the perfect investment opportunity for anybody to try. Keep reading to learn more about gold bullion, certified coins, why they are great investments, and how to start investing in gold today.
What is Gold Bullion?
Bullion is gold and silver that is officially recognized as being at least 99.5% and 99.9% pure and is in the form of bars or ingots, according to Investopedia. Bullion is often kept as a reserve asset by governments and central banks.1
To create bullion, gold must first be discovered by mining companies and removed from the earth in gold ore, a combination of gold and mineralized rock. The gold is then extracted from the ore with the use of chemicals or extreme heat. The resulting pure bullion is also called “parted bullion.” Bullion that contains more than one type of metal is called “unparted bullion.”
Why Gold Bullion is a Great Investment
You can think of gold bullion as gold in its simplest form. It is stamped only once and isn’t nearly as beautiful or shiny as certified coins. However, they are still gold which makes them very valuable. Bullion is a great investment because the value is easy to predict as it goes up and down with the price of gold. Bullion has high liquidity, making it great for a short-term investment. Many factors help determine the price of gold bullion, according to the US Money Reserve, including:
- the coin’s weight
- the mintage, product type, and scarcity of the coin
- the current supply and demand for gold
- national and global economic conditions
What are Gold Certified Coins?
While gold bullion is available in the form of coins, they are not the same as gold-certified coins. Unlike bullion coins, certified coins are evaluated and graded for their condition and rarity by a third-party grading service, like Professional Coin Grading Service (PCGS). The higher the grade, the more perfect—and, oftentimes, pricier—the coin, according to the US Money Reserve.
Why Gold Certified Coins are a Great Investment
- Rarity. Some gold certified coins are worth more than others. This is due to many factors, such as year, quality, and much more. Just as if you were collecting baseball cards, each one has a uniqueness that adds to rarity and, in turn, value. If you are able to get your hands on rare certified coins, your collection will be worth way more than just the gold it is made out of.
- Authenticity. Certified gold coins undergo a rigorous certification process in order to determine their value. You can trust that each certified coin you buy matches the grade and purity it’s labeled as by the US Mint.
- It’s fun! Investing in gold coins is a fascinating, fun, and exciting hobby to get into. In addition, it is a hobby that will make money for you rather than plunking down tons of cash on equipment or needs for other hobbies.
Investing in Gold
When deciding whether to invest in gold bullion or certified coins, it depends on the amount of time and money you are willing to invest into gold. Bullion is the simplest form of gold, making it relatively easy to come by and predict the pricing. Certified gold coins are more of an investment, especially for rare coins, and it can take time to put together a date run. However, certified coins will offer you better returns, and gold bullion is ideal for a liquid, short-term strategy.
There are many other ways of investing in gold other than bullion or certified coins. You can invest in a Precious Metals IRA, purchase gold stocks, gold futures, and much more.
Investing in Gold with Priority Gold
Taking the first step of investing in gold can be confusing, especially if you are a new investor. Whether you’ve been investing in gold or other investments for many years or are a first-time investor, we can help you with your financial goals. Priority Gold is one of the most trusted precious metals dealers in the United States with BBB A+ Rating, AAA Rating with Business Consumer Alliance, and 5 Stars Rating with TrustLink.
We specialize in providing precious metals investment services with Security, Liability, and Great Convenience for customers. Our team is committed to helping streamline their precious metals purchases at a fair price, selecting the right precious metals portfolios, and meeting their important financial objectives. We make the investment process as simple as possible so that you can meet your goals more quickly, including an easy 4-step process for Precious Metals IRAs.
We offer Free Storage for qualifying Gold & Silver IRA accounts, a fast & easy gold buying process, and a smooth IRA Transfer. Priority Gold guarantees the highest customer service standards, including honesty, professional conduct, and the Ethical Code of Business.
For more information on investing in gold and to learn more about investing with Priority Gold, visit us at prioritygold.com