Gold is one of the few commodities that have an easily recognized universal standard and can therefore be traded in any markets across the globe. This is a definite plus as to why it is a good investment. The following scenario will help you to understand why investment in gold is a wise option.
Gold Coins Vs Non-Gold Investments
Any investor is faced with a myriad of investment options that, at times, portend a big headache when it comes to choosing one option over the other. Non-gold investments include investments in other precious metals such as silver, platinum, bronze, etc. It also includes investment in non-metals. Investment in non-metals includes paper-based investments such as bonds, bills, stocks, etc. or non-paper-based investments such as physical businesses and non-metal commodities.
Gold coins are better alternative to all these other forms of investments, especially when it comes to international investments due to the simple fact that its standard is more recognized across the globe and irrespective of whichever market you trade in, you will be able to buy and sell gold coins.
Gold Coins Vs Gold Bars
Gold coins are generally small units of gold in coin form. On the other hand, gold bars are much bigger units of gold. Gold coins are best suited for small-scale investors, traders and consumers while gold bars are best suited for large-scale investors, traders and consumers. As such, gold coins are much more fluid as compared to gold bars. This fluidity makes them the most viable option for small-scale traders and investors who would like to easily convert their investment into cash within a short call.
Gold Coins Vs Paper-Based Gold Investments
You do not necessarily need to buy physical gold in order to invest in gold. You can also invest in paper-based gold investment. Paper-based gold investments are those investments whose paper value is equivalent to gold value. Examples of paper-based investments include ETFs (Exchange Traded Funds) and shares in gold trading/mining companies. The major distinction between gold coins and paper-based gold investments is the ownership. Gold coins present you with direct ownership of gold as opposed to paper-based gold investments which are basically an ownership of interest in gold investment. Unlike gold coins, paper-based gold investments rely heavily on the ability of issuers of such papers to pay. Whenever the issuers of such papers become insolvent, then, you are most likely to lose your investment.
Wisdom comes with experience. So, even though gold coins are a wise investment, however, you need to know that the investor’s skills and experience are also important in order to derive maximum profit and benefit. Therefore, profitable wise is about you. It is about your experience, skills and knowledge that you acquire during the process of trading. However, generally, for those who would like to invest in gold business, gold coins rank as the wisest investment for a small investor as compared to paper-based gold investments.