What is the best type of gold for long term investors?

Certified gold coins are the best type of gold for long term investors. Here we define long term as being at least 14 months, and more likely, years. Over the long term, investment grade certified gold coins can substantially outperform gold bullion. For example, gold bullion is more than thirty times higher in dollars today than it was in the early 1970's.

On the other hand the PCGS Mint state gold coin index has risen from a benchmark of $1,000 in 1970 and stands at just under $120,000 today, a nearly 120,000 fold increase. This index is a cross section of coins in mint state or uncirculated condition, namely investment grade. Although the prices of individual coins may have a different history as many have done better than the index as have done less well.

The problem with buying and selling investment grade certified gold coins over the shorter term is that the cost of investing reduces the profit. Certified investment grade gold coins become the best type of gold for long term investors after 14 months in unusual situations and after two and three years more commonly.

Unlike gold bullion investment grade certified gold coins have legal precedent on their side if there were to be another government confiscation of gold. Thus there is no hurry in turning over the investment unless the investor is in need of cash. The rare gold coin market does not get bigger, the rare case of found sunken treasure to the contrary. Rare gold coins become family heirlooms and are removed from the market making the remaining coins of the same year, mint mark and grade more valuable.

For information on certified gold coins contact one of our gold experts at 1-800-300-0715.