Are Gold Bullion Coins or Shares a Better Investment?

The value of money, and also stocks and bonds, among other things, is being kept grounded by the situation of the economy at present. It is widely known that Oil and Gas, among other large-scale goods, are some of the most useful investments available, but most investors are apprehensive about investing in them due to socio-economic factors and the geo-political situation that is currently prevalent. Hence, most people nowadays are choosing to invest in Gold and also other precious metals. Gold investments is regarded as one of the best solutions available due to these factors, but what form of Gold is the best to invest in if you want to make sure that your savings are well-kept?

Gold Coins vs. Gold Shares

There are, as you may know, many types on investment choices available when you invest in Gold, with purchasing Gold stocks from reputable companies or even Gold bullion coins or bars some of the best-known options available. It should be known though, that investing Gold in the form of raw metal or investing in the shares of companies involved in Gold mining have significant differences to each other.

The better way of making a profit or even just preserving your wealth is to physically buy Gold in the form of Gold coins or bullions. The mass and purity of Gold, also known as the ‘yellow metal’, is what determines its value, and the most valuable form of it is when it is 99.9 percent pure. Even in the case of inflation or deflation, the value of even a few ounces of Gold will be respectable, because the value of Gold is determined directly by the amount of Gold available in the market.  With it being widely known that there are only limited supplies of Gold left, the direct effect of this is that the value of Gold keeps increasing. So, individuals can always depend on the Gold that they possess, even if the fiat values of Gold are losing or gaining their popularity.

The benefit of having a retirement plan is that you are given the option of investing in traditional and also physical assets, and so investing in Gold can help you diversify your portfolio, aside from the fact that it is of great value. Even though the option of investing in bonds, stocks, and mutual funds is available, the performance of these assets is directly proportional to the economy. This means that your savings can go down the drain if you have invested in these assets and the economy faces a downturn, while if you invest these assets with Gold you can control where the returns of your investments will come when you need your savings.

The main purpose of Gold companies is to mine Gold and investing in Gold stocks means that you are investing in these companies. Compared to three years ago, Gold stocks are worth almost 300 times more than they were before, and this goes to show that Gold shares are unpredictable and troublesome for financial experts. These experts are always on the hunt for possible trends in the market for Gold and are susceptible to a bigger amount of loss when they invest in Gold shares.

Hence, it doesn’t matter what type of Gold you choose to invest in, if you do not consider the state of the economy while doing so, and so all of these things should be in consideration when choosing to invest your savings.

1/5 - (1 vote)

About 

Kevin Lee is a former tech advisor who cut his teeth in Silicon Valley. He now spends his time sharing his passion for investing in diamonds and jewelry. You can reach Kevin for any comments by using this form.