How to choose the right investment gold?

Gold, a symbol of wealth, remains a safe and profitable investment year after year. Ingots, ingots or coins, the offer is varied and available to everyone. Find out which gold investment is right for you.

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Investing in gold bars or coins is an option in 2024. After two decades, prices are still rising. And the trend is not about to reverse. So, bullion or coin, how do you choose your investment?

A profusion of gold bars

In the collective imagination, the gold bar is the symbol of wealth par excellence. This noble gold brick has a unique purity.

This is a very good long-term investment. In this case, the advantage of gold bars is that there is no premium when buying or selling. However, ingots or mini-ingots are often new. Then you pay for the tester-melter, which can significantly increase the final bill.

Gold bars are only really interesting for investing in large weights. In this way, shipping costs will be reduced. You only pay a counter-commission. However, the heavier the bricks you buy, the less freedom you have to partially sell your gold.

The most common bars are those weighing 100 grams, 250 grams, 500 grams and one kilogram. If you’re thinking of buying bullion under 100 grams, it might make more sense to look at coins.

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Historical value of gold coins

Unlike bullion, which only offers monetary value, gold coins also have historical value. Some even have original designs that make them very beautiful collectibles.

Gold coins have the advantage of offering a small amount of gold in a practical format, very easy to store. In a mini format, the pieces are easy to share and easy to sell. It is an option for novice investors.

However, potential premiums are a factor to consider if you want to invest in coins. The rarity of the piece, its condition or even its design will likely artificially inflate the price. So watch out for very popular or exotic pieces.

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The most common coins on the market are Napoleon Francs, English Sovereigns, Krugerrands and Mexican pesos.

What about Bullion Coins?

Between the gold coin and the brick, the Bullion Coin is starting to find a place in investors’ portfolios. This legal tender gold coin benefits, like the Napoleon franc, from the taxation associated with currencies. It is exactly equivalent to one ounce of gold and is subject to a premium. You will thus be able to get an attractive margin in the event of a sale.

Buy your gold wisely

Like all businesses, gold is subject to fraud. Also, certain points of attention need to be checked to ensure that you have quality gold.

When it comes to bullion, you have few parameters to control. So if you’re avoiding artisan bars and opting for an LBMA-certified gold brick, you’ll save yourself the trouble.

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With this designation, your bar must display the following details:

  • the name of the examiner-melter;
  • weight;
  • purity of gold;
  • mention of “pure gold” or its local variant;
  • serial number.

The presence of a certificate in no way guarantees the authenticity of the ingot.

When it comes to parts, it can get tough. You need to check the part itself but also calculate the premium to judge if it seems acceptable to you.

The alertness points for the room are:

  • model identification;
  • luster or luster;
  • cuts or scratches;
  • jewelry settings;
  • weight.

The premium of a gold coin is the price difference between the price of the gold contained in the coin and the final price of the coin. Generally speaking, the factors that affect this premium are:

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  • the rarity of the piece;
  • publishing;
  • room condition;
  • supply and demand.

As with gold certificates, purchasing sealed coins does not guarantee that they are genuine.

Choose gold according to your profile

Beginner investors generally gravitate towards smaller coins and bars. Therefore, 100 gram bars are the most popular for this type of investor. For coins, they value African Krugerrands as well as British sovereigns.

More experienced investors, especially when they want to invest large amounts, choose bars weighing 500 grams or even one kilo. They complete their acquisition with pieces from monarchs to Napoleon.

In the form of bars or coins, gold is a reliable investment. Bullion will be more suitable for experienced investors with higher amounts to invest. Parts are more affordable and tailored for beginners. A combination is also quite possible for a more diversified portfolio.

The Capital editorial team was not involved in the writing of this article

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