You’ve probably heard about bullions and bullion coins if you have not been living under a rock. If you are thinking of allowing your money to grow by investing in them but are still dubious about it, you can take a look at our list of its benefits that we have prepared in this article.
But First, What Are Bullion Coins?
Bullion coins are coins that are made from precious metals and kept as a store of value or an investment. A bullion coin is distinguished by a clear statement of weight and firmness on the coin. Bullion coins are usually available in silver and gold. You can buy them from coin dealers, major banks, brokerage firms, and precious metals dealers.
The ISO currency code for gold bullion is XAU. ISO 4217 also includes codes for precious metals such as gold, silver, platinum, and palladium. Bullion coins usually weigh in fractions of 1 troy ounce as compared to 1 USD. Some coins are produced in very limited quantities in kilograms or heavier.
The best-known bullion coins are the gold american eagle. Gold American Eagle coins are the nation’s only official investment-grade gold according to the The United States Mint. They are the easiest to buy and sell because their weight, content, and purity are guaranteed by the US government.
Gold American Eagle coins are also available in silver and platinum, and palladium.
The European Commission annually publishes a list of gold coins which must be treated as investment gold coins in all EU Member States.
Top Ten Benefits of Investing in Bullion Coins
- Provides a Stabilizing Effect for Your Portfolio
When other investments in general decline, gold tends to go up. Owning bullion coins diversify your investment and provide a stabilizing effect on your portfolio.
- Provides Satisfaction
Owning gold can be very satisfying. Just knowing that you have a gold bullion coin can make you feel secure.
- You Can Barter With It
Other countries before have experienced a massive currency devaluation. When this situation arises, you can use gold or silver coins to buy and sell. Although this may sound crazy, it can really happen.
- They’re Discreet
Nobody has to know that you have bullion coins, so owning them is great if you want to maintain your modesty.
- Gold’s Potential
There is a significant potential upside for gold and bullion coins’ prices are more in line with the market. But make sure that you find a reputable coin dealer before you get your hands on one.
When uncertainty such as market turmoil arises, many investors prefer to store a portion of their wealth in gold and silver bullion because they are tangible assets that are highly liquid.
- Minimize Banking Implications
The overseas market for these coins has become more active these days than for gold bars. Holding gold or silver bullion coins allows you to avoid large banking fees when traveling abroad. Gold American eagle coins are universally trusted, so you can sell them overseas without having to pay a large chunk of money to pay banks just to move funds around.
- A Flight to Safety
Think of a time when an economic turmoil arises. Government-issued bullion coins enjoy approved status within the IRAs period, and have definite advantages over other forms of money when it is needed to bring large sums of cash overseas. Owning them is like having a refuge for safety.
- Wealth Preservation
The dollar continues to decline and inflation risk arises, so investing in bullion coins can safeguard your purchasing power and protect your worth as you near your retirement.
- Growth Potential to Your Liquid Assets
If your money is just sitting in your savings account, you don’t really grow them. Converting your cash to bullion coins can be smarter as the value of gold increases. Also, many of the bullion coins are exempt from Capital Gains Tax (CGT).
Bullion coins are the affordable counterpart of precious metal bullions, hence they are easy to break down and liquidate.
We understand that you want to diversify your investments by investing in bullion coins because of the uncertainty surrounding the global economy. But it is just smart to make an in-depth research about it first so you won’t kick yourself after.