Investing with gold is commonly seen as one of the best ways for investors to protect their hard-earned wealth from the instabilities of a weakening economy, and today I would like to focus on the two most popular gold investment methods. There are two main reasons why investors begin investing with gold, the first one is for short-term profit-taking, and the second one is for long-term wealth preservation. Short-term profit takers typically purchase bullion products like the American Eagle coins or the Johnson Matthey bars because of their low premium, which makes it easier to purchase and sell in an instant. These types of investors keep a very close eye on the daily market spot price of gold in order to potentially determine the best time to make a move in this heavily fluctuating market.
On the other hand, long-term preservation seekers typically purchase investment-grade rare coins certified by companies such as the Professional Coin Grading Service, such as the $20 Saint Gaudens or $20 Lady Liberties. These coins carry a higher premium than bullion products, yet their numismatic (rarity) value makes them less susceptible to sudden market movement, plus they have also proven their ability to increase in value faster than bullion over a period of three years or longer. These types of investors usually begin investing with gold as a safe haven hedge because certified rare coins have historically preserved wealth while inflation and deflation hammers away at dollar-backed assets.
John Halloran
Senior Gold Specialist - Buy-Gold.org
