Buy Gold Bullion - A Better Investment Than Rare Gold Coins?

Generally, coin collectors are drawn to gold coins for a few basic reasons. First, gold has historical significance in that there have been major events where gold and or gold coins were key players. Secondly, the pure beauty and artistic significance of minted gold coins is a huge attraction. Lastly is the utilization of gold for exchange as money, having monetary value. US gold coins are still being minted today and can be purchased from the US Government.

Gold coins were first minted around 560 BC. Gold coins were the primary form of money from that time until the early 1900’s. In 1933, the worldwide Great Depression led to a switch by the governments of the world to currencies with very little intrinsic value beyond the cost of production, such as paper currencies and minted coins made from far less valuable metals. The U.S. Government ceased circulating US gold coins about this time.

Features of gold such as its unique color, luster, and excellent malleability, make it a very appealing for use making jewelry. These same properties also make US gold coins as well as gold coins from other parts of the world aesthetically pleasing to collectors. There are also stories behind the designs of the coins that are a great part of world history, on top of their value artistically.

Coins collected for their monetary value are gold bullion coins. Bullion coins contain ninety to one hundred percent precious metal by weight. A small, one ounce coin can be worth several hundred to several thousand dollars depending on the metal, and the current spot price of the metal. As such, these coins are a dense store of financial value. Investors consider gold a hedge against the inflation of currency without any inherent value, such as paper money.

Besides precious metals being used as a hedge against inflation, many investors also store some of the net worth in them to hedge against the possibility of another major economic recession. Those who do this argue that today’s modern currencies hold no real value, and would quickly lose their value in exchange. Using this logic, gold coins would actually increase in value as an exchange unit as people began abandoning banks and other more traditional investment vehicles for a safer place to maintain their money. Gold has also maintained its value as a unit of exchange over thousands of years, unlike paper currencies and stocks and bonds that have not.

No matter the reasons behind your interest in gold coins, you can learn much more online or from books on the topic of numismatics and gold bullion. Although disreputable dealers abound online, as in the physical world, there are many reputable gold dealers from whom you can buy gold bullion or buy gold coins.

Learn more about US gold coins at the net’s premiere site covering everything related to U.S. gold coins, US-Gold-Coins.org. Whether you’re seeking to buy gold bullion or buy gold coins, everything you need is here including current spot gold price prices, gold related videos, and of course, our US Gold Coins Blog!

- Daniel Wright