The answer to whether Certified Rare Gold Coins or Modern Bullion Gold Coins make a better investment is unique to every individual. It depends on many factors, such as investment goals, propensity for risk, and the value placed on intangibles.
Short term investing is all about generating cash. Investors buy gold expecting that in the near future the price will rise to a point that satisfies their goals, at which time they sell. They base their expectations on trends in the spot price, but there is risk because nobody can be absolutely certain what lies around the bend. The amount of risk depends on how long the gold is held.
Very short term investing - speculating on daily or weekly spikes in the volatile spot price of gold - bears the greatest risk and consequently has the potential for the greatest rewards. These trades, however, are almost always in derivatives which can be riskier than physical gold.
Risk also increases when gold is held too long due to temporary reversals that are inherent in the cyclical nature of the spot price. Most individual investors look for returns over a period from one month to a little more than a year. For them, Modern Bullion Gold Coins are ideal. These coins can be purchased at very near the spot price of their gold content and their exceptional liquidity lets investors sell their assets the moment their goal has been reached.
Long term investing is all about generating wealth. The ideal portfolio grows in value consistently and substantially over many years, averaging out normal economic cycles and holding steady through periods of economic instability. The key to successful long term investing is diversity – a mix of the right assets in the right proportions. Of those assets, one stands alone as a proven hedge against declining stocks and soaring inflation – gold.
A great number of experts consider Certified Rare Gold Coins to be an ideal asset for long term investment. These coins are exceptionally liquid and secure, and equally important, their value is derived from two distinct attributes. The first, of course, is their content of pure gold. The second is what is known as the rarity premium, which depends on the scarcity and desirability of the coin. Scarcity is fixed – there will never be any more than there is today – and desirability is rising in step with the rapidly growing interest among investors. When you add in the intangibles of historical richness and timeless beauty, it is hard to beat Certified Rare Gold Coins for long term investment. The chart below shows how well PCGS gold coin investments and NGC gold coin investments have fared versus bullion over the last decade.
There are limitless investment strategies, but their purpose is the same: building for a future that is over the horizon, far out of sight. What that future will look like can only be imagined. But one thing is certain: everything changes. Successful investing is not an event, it is a part of daily life in which we observe the world and adjust our strategy to changing times.
That is why it is so important to have an investment partner – and not just a dealer – for your gold investments. With Certified Gold Exchange as your partner you will always have the latest research and up-to-date reports at your disposal. Our expert advisors will get you the answers you need when you need them and will work side by side with you to help you reach your investment goals.
Whether your interest is in Certified Rare Coins, Modern Gold Bullion Coins, or any other precious metal product - or if you just want to explore the possibilities – call Certified Gold Exchange today at 1-800-300-0715.