Gold coins are useful for investors to protect their assets from depressions and recessions. Gold coins usually retain value even when other investments are decreasing in value over the same period of time. There are several instances of gold coins being used to supplement stable investments strategies and maintain a value base for the investor.
To purchase a gold coin, the investor needs to ascertain the reason for the purchase. If the investor is just looking to stabilize their portfolio, then the best strategy is to purchase coins that are newly minted. According to the November 13th article in the Washington Post, investors who are looking to start investing in gold coins needs to be aware of the various prices and rarities of the coins.
Gold coins minted before 1933 are considered the rarest and have the highest initial cost for investment. These coins are good for investors who are looking to invest a large sum of money and do not want to wait a long period of time for their gold coins to increase in value. The rare coins are mainly purchased by older investors who are looking at maintaining a larger portfolio.
Coins minted after 1933 are considered modern coins. If the gold coin you wish to purchase is of the modern variety, then the investment will not have a significant return for a minimum of 10 years. This is due to the number of coins minted by the federal government on a yearly basis. After the gold coins have been in circulation for a few years, then the value increases.
Gold coins value is not always linked directly to the price of gold, but also to the rarity of the coins themselves. As the coins remain in circulation, the various coins will be lost, disfigured or destroyed. This causes the coins to become rarer and to have a higher value. This is primarily due to the economic law of supply and demand. As the supply dwindles for a product or item, the demand for that item increases and so does the value.
Gold coins are a great asset for investors of all ages. Older investors can use the rare coins to supplement a stable portfolio and younger investors can use the modern coins to start building a portfolio. This allows the younger investors to start out their investment careers with a stable base and then build a portfolio that can last them a lifetime.