How Buying Gold Coins Becomes A Safe Investment

By Author: Raj Parmeswar
Total Articles: 1
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Buying gold coins is a passion for some. The craft, design, image and the age of coins are some attractions. Although profit may be a motivation, it is not always the sole purpose of a purchase. Such people look beyond the coin's metal value.

Buying gold coin mainly by three groups

Old coins represent a civilization that lived and died long ago. Each coin has a story to tell about how it changed hands and survived the time. The mere feeling that it belonged to a distant era is enough to entice some buyers. The buyers here are collectors of coins who feel proud of their treasure.

There is another group, who looks at gold as a means to insure their assets from falling in value. They consider gold as the best commodity to invest, which could stand uncertainties similar to what currently clouding the economy. Buying gold coin enables them to own gold in small stakes. This apart, it is easy to store and trade them due to higher demand and liquidity.

Besides gold, people choose other metals like silver, copper and platinum , and also stocks, currencies, bonds, real estate etc., to safeguard value of their ...
... wealth. But compared to gold, all other commodities are volatile and the risk of losses is higher.

The third group consists of traders who buy coins for trading purpose and pocket the margin at the best available opportunity. They buy at bottom to sell at top.

Why gold coins considered the best investment

Whatever may be the purpose, this appears the best time for buying gold coin, as the prices cooled to your advantage now. Experts say that gold prices are consolidating at the current level and poised to climb soon. They have several reasons for this optimism.

1. Gold is still the safe haven
2. Its closest rival dollar is on a long downtrend.
3. The aggressive rate cut by the Fed Reserve will keep dollar at lower level
4. The ongoing credit market crisis and the sluggish growth outlook give no room for Fed to harden its policy in the near future
5. Other options such as oil, stocks, real estate have all plummeted to level of no return in the short- term
6. As the world economy is facing a near certain recession, the demand for commodities will fall further so will their prices.
7. In the given situation, gold is the only commodity that can attract investor confidence and demand.

The outlook of gold turns better and the prices started looking up, reports say. And, buying gold coins is the easiest way of owning gold in small stakes to become a part of the rally. This will enable you to benefit out of the exposure to gold price movement.

Raj Parmeswar, a former banker, writes on various topics related to Gold Price Trends, Value of Gold Coins and maintains a website on Gold Bullion Coins, Gold Bullion Bars, Silver Coins, Rare American Eagle Gold Bullion Coins etc.