You’ve worked hard and saved and sacrificed for your retirement. But when it comes time to take distribution, how can you be sure that your money will still be there?
What can you do to make sure it will be?
Have you diversified?
Most experts suggest diversity in your investment portfolio. Like most investors you probably have a variety of traditional paper investments like stocks, bonds, and mutual funds.
Is that enough?
If you’ve looked into purchasing gold coins you may’ve found yourself overwhelmed by all the various information out there. For the inexperienced investor, it can be confusing.
When you think about gold, what do you imagine? Large gold bars buried deep in underground vaults? Gold bars come in many different shapes and sizes in order to meet the different needs of investors. Gold bullion bars are sold by the troy ounce (1.09714 ounces) and come in sizes from 1 ounce all the way to 100 ounces and larger. The problem with bars is that unless you’re a large, institutional-sized investor, bars are not going to be right for you.
There are a number of ways that dealers will try to sell you “investment coins.” While it’s true that gold coins has traditionally provided investors with a hedge against currency debasement and devaluation, inflation, and falling stocks, choosing among the different types of gold coins can be confusing. Search the internet for information about gold investments and you’ll find sites that promote “numismatics” and “collector coins.”
These types of coins are collectible for their age and rarity and as a result can sell at high premiums above their gold content. These coins are not considered an investment coin in the traditional sense. Unless you’re an expert in the numismatic market, it’s best for you to avoid collector’s coins.
Gold bullion or investment grade coins, on the other hand, sell at small premiums over the value of their gold content and can be easier to sell when need be. They have also outperformed stocks and bonds over the last 25 years with investors realizing more than a 300% return on investment in the last decade. These coins make the best gold investments.
Gold bullion is also produced by countries and private entities in round shapes that resemble coins. While some of them may look like coins, they are not coins because they do not carry a monetary value. Others are considered coins and derive their value from their precious metal content and are not intended for common circulation within a country’s economy.
If you’re not an institutional investor and you’re not looking to get involved in old and rare coins, gold bullion coins issued by a predominant country can be the ideal choice. These include: U.S. Gold Eagles – the best-selling gold investment bullion coins in the world, U.S. Gold Buffaloes, Canadian Gold Maple Leafs, Chinese Gold Pandas, and Austrian Philharmonic gold bullion coins.
There are a variety of sizes that can be purchased for a reasonable premium over the spot price of gold. These coins are all meet the necessary fineness standards to make them suitable for holding in a self-directed IRA. (Collector coins, on the other hand, do not meet these standards under Federal law.)
Although they are popular as a collectable, the South African Krugerrand is not allowed as an investment coin in an IRA because it doesn’t meet necessary IRS fineness standards.
If you’re looking for the best hedge against financial uncertainties, there is only one portfolio item that will serve you in all seasons and under most circumstances — gold investment coins.
Before you make your purchase make sure you do your homework and get the best information available. You can begin by downloading a FREE mini-course that will help answer many of your questions about gold investing and coins. It is entitled “The Essential Guide to successful Gold and Silver Investing.” This course is full of valuable investment tips that could help you make the decisions that could save you thousands of dollars.