Investing in physical gold is a great way to ensure you’re always able to purchase goods and services even if the dollar were to completely crash.
Physical gold has been a store of value for centuries and is still as valuable as it’s always been. There are many types of investment options that may seem like good ideas, but they all have risks associated with them. Investing in physical gold has no such risk because people will still be buying it regardless of what happens economically. Gold can’t be hacked, stolen, or destroyed by natural disasters so there’s nothing more rewarding than investing in this precious metal!
What Size Do You Want?
Gold bullion comes in a variety of sizes, from tiny one-gram coins to large 100-ounce bars. It’s important to consider your gold storage options and how much space you have available before making your purchase. Of course, you also need to consider how many gold coins you can afford.
The smallest gold coins are less than a quarter of an ounce. They may be easy to store, but they typically offer very little value and the minting process is expensive, resulting in lower profit margins for dealers and higher premiums over spot price for buyers. Meanwhile, large 100-ounce bars provide exceptional value but come with significant storage concerns.
What Type of Gold do You Want?
There are a variety of different types of gold bullion, including coins, bars, and rounds. Each has its own unique features and benefits. For example, coins may be more collectible than other forms of gold, while rounds are often less expensive. Make sure to select a form of gold that meets your specific needs and preferences.
Smaller coins tend to be more popular, as they are frequently easier to store and handle. So-called “junk gold” is also popular because of its low premium over spot price. For example, check out the Austrian 100 Corona coin (32.15 grams), which has a small premium (currently $2) over the spot price of gold (currently $1,247). On the other hand, larger coins may offer better value for investors that want to buy one full ounce at a spot price. The Canadian Gold Maple Leaf Coin (one troy ounce) can hold up against smaller coins in terms of brand name recognition and production quality, but it typically offers a lower premium over spot price than smaller coins.
How Much Do You Want to Spend?
Gold bullion prices vary widely, and it’s important to set your budget before you begin shopping around. Of course, your budget will depend on what type of coin or bar you’re looking for and whether you want to buy one full ounce or more than one ounce of gold at a spot price.
Gold coins typically have higher premiums over spot price than gold bars, but the variety and quality of coins on the market can vary greatly. Some coins, such as the American Gold Eagle and Canadian Gold Maple Leaf, are very popular and carry significant premiums. Other coins, such as the South African Krugerrand, maybe less popular but still offer good value.
Gold bars come in a variety of weights and sizes, with premiums that vary accordingly. You’ll find smaller bars (1 gram to 10 grams) with much lower premiums than larger bars (100 grams to 1 kilogram). However, you may also want to consider how easy it is to sell your gold bar if you need to liquidate your investment quickly.
What’s the Premium?
The premium is the price markup that investors pay above the spot price of gold. It varies depending on the type of gold and its size. Generally speaking, smaller coins tend to have a higher premium than larger coins, and rounds tend to have a lower premium than bars.
Junk gold is a term used for coins that have a low premium over spot price. This type of gold is often minted from recycled gold coins and jewelry. It can be a great way to invest in physical gold without spending a lot of money.
When you’re shopping for gold, it’s important to pay attention to the premium over the spot price. This will give you an idea of how much you’re paying for the coin or bar above the value of the gold itself. By choosing wisely, you can find good deals on high-quality gold investments.
How Easy Is It to Sell?
Some types of gold are easier to sell than others. For example, coins may be more popular with collectors and may be easier to sell than gold bars. In addition, some coins may be easier to liquidate if you need to sell your investment in a hurry. That’s why it’s important to consider the ease of sale before you make your purchase.
Some investors choose not to use credit cards when buying their gold because they want to avoid spending more money than necessary by paying interest on the purchase. If you’re using a credit card, it’s important that you pay off your balance monthly and don’t spend more than you can afford.
Do Constant Research
Gold prices fluctuate constantly, so it’s important to keep an eye on market trends before investing in physical gold. In addition, the gold market is affected by many factors, including political issues in the United States and around the world.
It’s a good idea to do some research before you purchase your physical gold investment. Learn about metals prices and make sure you understand how much each type of coin or bar costs. By learning more about gold investments in advance, you can find high-quality deals with lower premiums over spot price that will help you meet your financial goals today and in the future.
Investing in physical gold has been an excellent way to diversify your portfolio for centuries because the metal retains its value over time. Today, it’s even more important than ever before as we see political instability reverberating around the globe. Gold prices fluctuate constantly so do some research before you invest in any type of coin or bar including junk gold which can offer great deals on high-quality investments at lower premiums over spot price. Your choice will depend largely on how easy each type of investment is to liquidate when needed, but also on how much money you want to spend upfront versus what kind of premium that particular option offers relative to others available today.
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