|By Aina Ster|
August 1, 2019
Bullion coins are different from the usual pennies and nickels used for everyday commerce. They’re sourced from precious metals, such as gold and silver, and come with a defined weight, as well as content that pertain to their value. These coins are typically bought for investment purposes.
Four Reasons Why You Should Invest In Coins
They are more affordable and smaller compared to bullions, which come in the form of bars and slabs. While some coin collectors acquire these for their collection, there are advantages you can enjoy from bullion coins investment-wise.
Here are the reasons why you should invest in these coins:
1. Longstanding Value
The value of precious metals, especially gold and silver, has been proven to withstand the test of time. From ancient times up until today, the market has continued to recognize the immense worth of gold and silver coins. Start collecting by educating yourself first and doing your research on the different types of coins in the market today. Websites like Gainesville Coins make the process more straightforward by showing you the available items and their corresponding prices. Some of the popular bullion coins are:
- American Eagle - The American Eagle was introduced to the market in 1986 and continues to be popular today. It's one of the easiest coins to buy, sell, and trade since it always holds high value.
- American Buffalo - It's a more recent addition to the US bullion coins collection. This one was introduced in 2006.
- Canadian Maple Leaf - Considered as one of the most beautiful coins, the Canadian Maple Leaf comes in gold, silver, and platinum. It's an excellent investment for beginner collectors.
- Chinese Panda - The Chinese Panda coin is .999 fine gold and was released in 1982. An interesting fact about this bullion is that the reverse side changes each year while the obverse always features a panda.
- South African Krugerrand - It's one of the first modern bullion coins, which was introduced in 1967. It is believed to be a symbol of wealth and prestige.
2. Safeguard against Inflation and Deflation
Inflation is a real problem, and it's the reason why the cost of living is expensive. Fortunately, gold and other precious metals continue to retain their value even through economic crises. These coins can also protect you from deflation or a period when business activities slow down, and there's excessive debt.
One example of how the value of gold rises through financial meltdowns was with Argentina in 2002. The banks closed and the country's currency, the peso, sank in value. Individuals who converted their assets to gold or silver coins were able to tide through and survived the economic crisis.
3. Defense from Global Crises
Aside from economic crises, gold, silver, platinum, and other precious metals can survive through geopolitical uncertainty. Even during the possibility of war, its value outperforms other investments. Generally, people scramble to get their hands on bullion coins when tensions arise, which leads to its increase in value. Gold experienced significant price movements this year due to the crisis that the European Union is facing.
4. Ever-Increasing Demand
No matter how many other currencies are introduced into the market, the demand for gold will never cease. Precious metals are also embedded into various cultures for their alleged luck-giving properties like during weddings, and in making jewelry.
Bullion coins are lucrative long-term investments because their value either remain consistent or go up through the years. You should consider buying these coins to safeguard your future against inflation, deflation, and global economic as well as geopolitical crises. Patience is necessary when you invest in coins since you won't get to enjoy the benefits immediately.
|Aina Ster is a Member of Macroaxs Editorial Board. Aina delivers weekly prospective on ongoing market and economic trends, analysis and tips from predictive analysis to forecasting across various financial instruments. View Profile|