How much wealth you decide to invest in gold bullion is of course a personal preference dependent on a number of factors such as age and risk tolerance. In this article we’ll discuss how you can invest in gold bullion .
Gold bars or Gold coins?
The first question is whether you want to buy gold bars or coins.
When I decide to invest in gold bullion, I usually opt to buy gold coins from a reputable dealer. Gold coins are recognized all over the world and they do not need to be assayed when sold. Because the marketplace for gold coins is larger than the marketplace for gold bars, it is a preferable investment vehicle.
Gold coins are portable and you can fit almost a hundred thousand dollars of wealth in something that is about the size of a roll of quarters.
Which Gold Coins?
The next decision after you have decided to invest in gold bullion and you are set on buying gold coins is to choose which coin you want to purchase.
The most popular coin in the United States is the American Eagle. Usually, the coin will sell at a premium to Canadian Maples or Austrian Philharmonics. In Europe, Austrian Philharmonics are commonplace.
I think every portfolio should have some American Eagles because it is such a liquid market.
You can still buy British Sovereigns and French Gold Franc Roosters at prices just over spot. These coins usually do not have any numismatic value despite being a hundred years old in many cases.
I find the most attractive gold coin to be Chinese Gold Pandas. The gold pandas also might sell at a premium as the Chinese might want to purchase all of their collectible items. For example, after the Japanese attained wealth they purchased all of their art work and antiquities back from American and European collectors.
I have no interest in purchasing coins with numismatic value as I have no knowledge of coin collecting. I am strictly interested in gold bullion as a hedge for U.S. dollar exposure.
Reputable Gold Dealers
Trying to find a reputable gold dealer is not as easy as driving over to Costco. Coin dealers have a reputation for being slimy and pushy salespeople.
Some people have had success buying coins off E-Bay. Personally, I’m not comfortable with this strategy. We will soon start hearing stories about fake gold and silver being sold.
Two examples of reputable dealers of gold coins are Gold Silver and GovMint.com
Mike Maloney of GoldSilver is widely regarded in the industry for being one of the top proponents of gold bullion. They can service Canadian clients and international clients.
GovMint can also serve international clients. Sometimes they have shipping delays but it is a large PM dealer which is comforting.
Invest in Gold Bullion
Once you have decided to invest in gold bullion there are three more questions that you should answer.
- Gold coins or bars?
- Which gold coins?
- Where are the reputable gold dealers?
Once you determine the answer to these three questions you should be able to invest in gold bullion with ease.
