Even though items such as 0.999 pure gold Credit-Suisse bullion bars and 24-karat Canadian gold Maple Leaf coins carry very low (2-6%) premiums over the gold spot price, you may not actually be “taking advantage” of low prices when you buy gold bullion. Although gold analysts and investors have watched the gold spot price climb over 400% since 2001, investors who buy gold bullion generally meet a few prerequisites.
If you are looking for the best way to hold physical gold for 14 months or less, it may be a wise idea to buy gold bullion. Gold bullion prices tend to move higher when the US dollar becomes devalued, so if you foresee inflation occurring during the next year or so, gold bullion could be a excellent way to offset losses you may suffer in cash accounts and other dollar-backed asset classes.
Gold bullion is highly recommended for short-term traders who would like to cash in their gold for a profit 1-14 months after purchasing product. If you believe that the dollar could become devalued to the point of collapsing if our nation’s policymakers keep printing and spending the greenback, then you may not want to buy gold bullion because our government historically confiscates that type of metal when the dollar’s solvency comes into question.
If you would like to keep gold in your hands throughout the course of years or even decades, and if you are interested in a completely private investment, you may want to consider certified gold coins in lieu of gold bullion. Over the last 20 years, certified gold coins like the $20 Liberty Head and the $10 Indian Head have been more profitable than gold bullion for investors who hold their coinage longer than 14 months, and their classification as private assets is what many gold coin purchasers enjoy. Call us directly to learn more about the two key types of physical gold investments, or browse one of our free precious metal investment guides below.
Steven Martin
Senior Gold Specialist - Buy-Gold.org
