Investing In Gold Coins
March 25, 2009 by ryan · Print This Article
It is an accepted fact that rate of returns are lower with low risk investments options and that is why low risk investments are considered rather disadvantageous. However gold coin investment on the other hand maybe considered as an exception to the rule. For most low risk investments, the investment results are unable to match inflation levels and as such it leads to the loss of money during the final profit/loss calculation, however in almost every case I can remember, investing in gold coins have always keep up with inflation levels.
It is an established fact that we human beings are attracted towards gold since time immemorial. Gold coins are the ultimate personification of the God of Wealth because of the value of gold combined with the shape and physical allure of gold coins. To sum up gold coins are not only good for long term investment but also carries with it that emotional appeal that reduces the risk of its devaluation under any…I said any economic crisis.
The lowest risk options are government bonds issued by the Department of Treasury. Of course, there is one set drawback with these vehicles of investment and it is that the return on investment is based on a fixed rate of interest that is set by the government. The investment interest rate is generally adjusted to stay at par with the rate of inflation that means that you barely make any profits from the investments. As compared to this, investing in gold coins is both a low risk and high rate of return investment option. This is primarily because of two reasons – First gold rarely loses value and secondly gold coin becomes a collector’s item when it becomes old enough and, obviously, in this case the value of gold coin increases. For example, in one case I read, there is a collector who has bought an American $20 double eagle gold coin that was sold for a whopping $7,590, 020 at an auction! The coin was introduced for the first time in 1933 and the auction was held in 2002.
You will probably agree that investing in gold coins is a very lucrative option amongst all other investments under the present economic turmoil. The gold coin carries the value of gold and as already mentioned the value of gold coin increases with the age. So if you are a little gun shy after the last 12 months of watching your stock investments plummet then I would strongly encourage you to look into investing in gold coins.
Read more on Pros and Cons of Investing in Gold
[...] The average gain of gold is more than 200% over five years. -Accepted fact that investing in gold coins historically have always outgained inflation. – It should be also taking into consideration that the [...]