Gold Coins Investment – Things to consider, Where to Buy, Benefits & more

Know everything about Gold Coins Investment here.

While most of the people have been known to go down the path of the lesson, saying “grab the opportunities” and “Don’t let money stop you!”, it never means to say that one should spend all their money in enjoying their daily lifestyle.

When one gets their salary or income- it is commonly advised that they spend only half of their incomes and save and invest the rest of their money.

It is true that after expenditure and debt repayments; one should invest most of their money to grow financially.

Apart from most of the investment vehicles, there exists a new trend in the market of buying gold coins as a form of investment. India’s love affair with gold has no boundaries.

Most of them own it in various forms like jewellery, gold coins, and even gold bars. Nowadays, it is available even on e-commerce websites too.


What is a Gold Coin?

A gold coin is a coin that is mostly or entirely made of gold. Gold bars have a domination in the gold reserves of Central banks, where gold coins have their occasional contribution to make.

Gold is used the same as money for many reasons. It is compatible, with a low spread between the prices to buy and sell.

A gold coin is commonly known as a round metal usually for investments or giving someone as a gift. The group involves coins in many other kinds of shapes.


Things to consider before Gold Coins Investment

Gold is something that many people buy on festive occasions. Other than jewellery people also buy gold coins for investment purposes.

If you are planning on buying gold coins for investment purpose, here are a few things that you should consider:

The purity of the gold coin

The purity of the gold coin can be examined by the supplier’s entity ordering the gold coins (e.g. 22 Karat, 24 Karat and 18 Karat, etc).

The gold coin bought for investment purposes is mostly 22 or 24 karats.

Weight of the coin

The most common of the gold coins are 10g or maybe less. Many producers produce small coins ranging in various weights.

Design of the gold coin

Gold coins can have a variety of designs. Many companies and jewellery shop keepers often have their logo carved on one side of the coin and a design on the other.

Many coins illustrate a vision of god or goddess on either side. Gold Coins having the initials of the manufacturer and suppliers unit are also on sale.

Hallmarking on gold coin

While purchasing a coin, one should ensure that it is fully hallmarked. It gives an assurity of the purity of the gold coins so that you are confident of getting the best one that you are paying for.


Know in Detail about Various Types of Gold Investment here

Digital Gold InvestmentSovereign Gold Bond Investment
Gold Bars InvestmentGold ETF Investment
Gold Jewelry InvestmentGold Funds Investment
Gold Monetization Scheme Investment

Where to Buy Gold Coins?

There are more than some of the common channels to buy gold from, but only a few of the sources are secure and legal.

In India, most people buy gold coins from a local jeweler or online shops, and other private companies like Muthoot Finance, etc.


Importance of Gold Coins Investment

When you buy gold coins, it is quite easier compared to other jewelry pieces. You will have the option to buy the purest form of gold in the minimum weight of grams.

This will also help in lowering the charges while as obviously, the ornamental items cost way high. When buying gold coins, investors pay a particular premium over the gold price on coins.

Generally, the smaller the coin for investment, the larger will be the premium on it. Owning physical coins may add additional costs to it exceeding the expense of the gold, including insurance and storage.

Gold is turning into fashionable investment these days and it has seen numerous price swings—both to the upside and to the downside.

Similarly, investors who did not consider gold as an investment before have now become interested. Investors list down a variety of reasons for buying gold coins:

  • It’s comparatively easy to buy and sell coins.
  • Investors tend to have the ability to test the content of the coin when they buy gold coins.
  • Owning gold coins and investing in it can be satisfying if one has an interest in it.
  • There’s a significant potential upside for gold.

The value of gold does not rely on currency values or any company’s position in the market, which means, one can rely on gold investment.

While people in the real estates and Bonds and get into inevitable losses, this could be a safer choice. However, investing in gold coins has its own pros and cons.


Find more details about Gold Investment here

Learn about Gold InvestmentGold vs Other Asset Classes
History of GoldFeatures of Gold
Gold Rate TodayGold Rate Forecast
Gold Investment CalculatorGold Rate Calculator
Gold Investment ComparisonGold Rate Comparison

Advantages Gold Coins Investment

Here are the major benefits of Gold Coin Investment –

Good Returns

Gold price increases when other financial assets like stocks and bonds fall in value. By investing in gold, one can ensure good returns in it even during difficult phases.

Gold coins are one of the best ways to invest in gold.

Always in demand

Gold is the eldest kind of investment. There is always a demand for gold in investments. This makes it a good asset that can lend you money in case of any need and Indian Gold Coin promises easy liquidity.

Constant Quality over the years

Papers or documents ruin if stored for many years and decades. But gold, it can never be affected with time.

The quality of Gold Coin remains constant over years. So you can pass the gold coins through generation and still the quality would be the same.


Disadvantages of Buying Gold Coins

  • Investing money in gold coins can be another loss because whenever you sell it you will get a lesser amount. Also, banks do not buy back the gold coins once it is sold.
  • Unlike stocks and bonds, the purchase of a gold coin is not an investment in the growth of a company. You won’t get dividends and interest from it. You need to wait years for gold to go up in value.
  • Investing in gold produces you absolutely nothing when you own it as gold coins, it only earns you money when you sell it.

Is Gold the Best Investment Option in Recession?

Basically, yes, gold is known for its steady and good performance even during the recession times.

Unlike risky assets like stocks, gold is a tangible asset that people tend to invest during hard times. Gold has been an impressive investment of stupendous performance during inflation.


Conclusion – Gold Coins Investment

Gold coins are a new trend for investment purposes. They are more reliable than any other forms of investments like real estate, but they also require the least bit of research on the customer’s part and guarantee a good return in maximum cases.

The best qualities make it one of the precious metals in the world and a popular gift in various forms

The reduction of paper investments leads to an increase in the price of gold and hence gold coins are a perfect option for investment to make if you wish to diversify your portfolio.

In shorter terms, gold coins prices can be inflammable, but it has maintained its value over the long term. If anyone is planning on investing in gold coins, one should make sure it is for the long term.

Investing in gold coins can be worth considering and beneficial in these days where people are so considerate towards investment.


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