As the economy continues to falter and the dollar declines in value, it makes sense to invest in gold. In fact, buying gold bullion, either directly or indirectly, is an increasingly popular investment choice. Buying gold coins and bars is something that you can easily do. Some people buy gold as an investment. Other people buy it to sell for a profit.
What Exactly Is Gold Bullion?
Most gold investments involve buying gold bullion coins. These are refined round coins that are created according to exact government specifications, with governments around the world defining a high manufacturing quality into what constitutes a gold coin. The coins are produced in bulk, made in different sizes, and their value measured in troy ounces. The governments that manufacture them guarantee their weight and their purity. They also ascribe them as legal tender for their monetary system. Their real value in the marketplace, however, is their precious metal content. Although different types of coins are issued around the world, they can all be easily recognized. Apart from their economic value, many investors are fascinated by their beauty, much like stamp collectors are by rare stamps.
Gold bars are rectangular in shape. Usually, these are purchased by really big investors, while most people prefer the convenience of buying gold bullion coins.
Buying Gold Bullion Coins.
The best way to buy gold bullion, if possible, is directly from the U.S. mint. If this is not possible, then you can buy it from someone who bought it from there. Often by the time the public gets their hands on the gold coins, it is already priced above what gold is selling for.
People buy them to store for the future or to sell for a profit. It is more profitable to sell them to a private party rather than a dealer. Reselling them to a dealer, you will not get full value, because the dealer has to turn them around and make a profit, too. On the other hand, it is much more convenient to work with a dealer.
Another thing to be aware of as well is that not all gold coins are the same in value. Some are better than others. A .9999 coin, for instance, is better than a .999 coin.
If you’re thinking of buying gold bullion, you should also consider learning about how and where to sell them as well. For instance, if you own gold bullion for under a year before you decide to sell, it is taxed as part of your regular income. Alternatively, if you hold on to it for over a year, your gains are taxed 28% at the most.
It’s easy buying gold bullion coins once you know how and you should not delay if you’re interested in this investment vehicle. Often people postpone buying or selling gold because they don’t know how to verify its purity. However, gold bullion coins are easy to trade because the assay for purity is determined during production and comes with a certificate. This official government certificate proves the authenticity of the gold and makes it easy to buy or sell.