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Worth its Weight in Gold – The Sense of Gold Coins as a Long-Term Investment Strategy

For a long time now financial gurus have advised people to add precious metals to their portfolios as a way to diversify their investments. Today, gold coins are seen as a valuable way to achieve just this because they do indeed offer investors three advantages over paper investments. The three benefits being gold coins are considered as a good investment, they are a way to hedge inflation and they can be used as currency which people can fall back on in an emergency or crisis.

Gold coins offer people a tangible investment they can fall back in times of emergency

Gold coins offer people a tangible investment they can fall back in times of emergency

A Sound Way to Hedge Inflation

Investing in gold coins not only offers you a tangible investment to fall back on should an emergency arise, but they are also seen as a great way to hedge inflation. In the seventies the price of gold (and silver) went through the roof when inflation seemed out of control and people turned to bullion for financial security. This included investing in gold coins with the 1oz Krugerrand hitting the headlines like never before because they were quite literally worth their weight in gold. This meant investors felt reassured their money was safe in a physical asset they could convert when they needed to.

In the eighties, economies got back on their feet, inflation was back under control and this saw people selling their gold including their coins to put back into paper investments. Over the ensuing years this global cycle has repeated itself over and over again with the one thing remaining pretty constant throughout, which is the value of precious metals and especially gold.

Investing in Gold Coins as a Form of Currency to Barter With

In many countries of the world, gold coins represent a form of currency which people can barter with in times of crisis. These coins are considered as “survival coins” and are normally fractional-ounce gold coins, namely the 1/10th oz. Gold Eagles or even the 1/10th oz. Krugerrand. However, not all gold coins are considered as being of value when it comes to creating a collection of “survival coins” and this includes gold collector or numismatic coins.

What about Long Term Investment Strategies?

As a long-term investment strategy, gold coins will always hold their value, that is to say they will always be worth the weight of the gold they contain, and this would be calculated on the value of gold at any given point in time in the future.

Gold coins will always be worth the value of the gold they contain

Gold coins will always be worth the value of the gold they contain

Are Numismatic Gold Coins a Good Long-term Investment?

Numismatic gold coins are generally considered a bad investment at any time and you should avoid buying them irrespective of how convincing a sales pitch might happen to be, see coininvestdirect.com/ for more information. You should also avoid buying any sort of gold coins from telemarketers who are known to use certain unacceptable sales tactics. By far the better route when buying gold coins is to contact a trusted and reputable source. You can do this over the Internet as long as you check out the site’s credentials before you commit to buying any gold coins from the company.

Conclusion

Gold coins will forever hold the value of the gold they contain and there’s just no getting away from this fact. As a long-term investment, a gold coin collection has to be seen as a valuable asset and one that should be added to a portfolio in order to diversify your investments. Whether you are buying gold coins as an investment, as bartering tools to be used in times of crisis or as a way to hedge inflation, there is one thing you can always be sure of which is that the right gold coins will be worth their weight in gold which makes gold coins as a long-term investment strategy extremely worthwhile.

 

Image credits: UKBullion.com and UKBullion.com

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