What are the disadvantages of buying gold coins?

Disadvantages of buying gold coins A thief could take your gold if you're not careful. Unlike stocks and bonds, buying gold is not an investment in company growth. You won't get dividends or interest on tangible gold. You may have to wait years for gold to rise in value.

Do you want to invest in physical gold but are not sure if you should buy gold bars or gold coins? If this is still your first time investing in physical gold, it's best to start by buying small gold bars instead of gold coins from official sellers, as you often won't make the same big mistakes that many inexperienced people make when buying gold coins and you may want to wait to invest in gold coins until you gain more knowledge. Gold bars often make it quite difficult to determine the true value of a gold coin, as prices change quite frequently and, if you're unlucky, you can buy gold coins at a much higher price than would be justified from an objective point of view, while you'll often buy gold bars at the current market price and won't run the same risk of paying too much as investing in gold coins. You should also know that there are a lot of fake gold coins, and if you're not careful and don't know much about collecting gold coins, you may spend too much on gold coins that may look good, but may actually have a value close to zero. This comparison did not take into account the additional costs and complexities of storing and insuring gold coins.

Mathematical risk calculations related to the storage of gold are well known and insurance actuaries know that, while it is true that there are risks during transportation, an approved long-term storage vault within the professional bullion market system is by far the safest place to store gold. For this reason, it's worth understanding the difference between ingots and gold coins before you go shopping for a handful of glittering gold coins. Bullion gold coins are sold at market price (the price of gold that day) and the gold dealer adds a premium. If you're wondering if now is the right time to buy gold or if you're considering investing in the future, do some research through a precious metals company.

Gold owners looking for a storage location abroad should try to avoid political instability, negative trade balances and budget deficits, and should look for countries with a healthy interest in maintaining international investor confidence. Nor should you forget that the transaction costs and premiums of gold coins are usually much higher than those of gold bars and, if you don't want to keep your gold coins for a long time, but you want to sell them fairly quickly, you'd better buy gold bars, since you won't have to spend so much money on premiums that you'll never receive. Gold bars make it possible to impress your social circle with your collection of gold coins, since you can show your family and friends all those beautiful coins and, therefore, your loved ones will often envy or admire you for your beautiful collection and, therefore, you can achieve a fairly high social position among your colleagues. This is simply because gold ingots are cheaper to produce, convenient to store, and easier to secure and sell.

That's where all BullionVault gold is kept, and that's why all BullionVault gold is automatically insured with a normal storage fee of 0.01% per month. If dealers hand over 99.99% of gold to liquidate their sales, they are needlessly wasting the cost of electrolytic refining. Buying gold may make sense for some investors, but it might not be something you want to rush into. The maximum roundtrip operating costs of Good Delivery bars in BullionVault would be 1.2%, which is approximately one-sixth of the typical cost of 7 to 10 percent of handing out gold coins.


Maisie James
Maisie James

Bacon fan. Wannabe food ninja. Twitter fan. Infuriatingly humble travel practitioner. Proud beer practitioner. Devoted reader.

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