What Are the Down Sides to Gold Coin Investment?

A gold coin investment can offer you a number of benefits, but there are also some down sides to this type of investment as well. Investing in precious metals can be a way to have stability and lasting value. Gold and other precious metals will normally hold their value or increase it over time, rather than losing money. Gold coin investments are easy to make, and you can take possession of the gold coins so that you can physically hold this type of investment. These coins are also very liquid, making them easy to buy and sell. Historical value is another positive aspect, and some older coins are worth thousands of dollars. This does not mean that there are no drawbacks with these investments though, although the disadvantages are not as numerous as the benefits.

A gold coin investment has the disadvantage of a markup as well as additional costs and fees. Gold coins will usually cost more than the same equivalent weight in bars because of the transaction costs. When you make a gold coin investment you are paying for the price of the actual gold, but then there are extra fees and costs tossed in. You will pay for shipping, and the markup from the dealer. This could mean a loss if you decide to sell your investment, because you may only recover the value of the gold and none of the other costs. Storage and theft may also be problems. Because the coins are small and not very heavy it may be hard to securely store them and protect your investment against theft.

The information supplied in this article is not to be considered as medical advice and is for educational purposes only.