1) Gold Coins

Gold coins are in demand due to their numismatic value which helps it maintain its purchasing power over the years. The main reason to buy gold coins is for investment, not for industrial purposes or decoration.

For investment, gold coins are usually priced at a premium.

This is called the numismatic value. The price of gold coins depends on their weight, metal purity or fineness, which determines how much it is worth.

There are American Eagles, Canadian Maple Leafs, South African Krugerrands, Chinese Pandas etc., each with their own unique features.

 

Gold coins are usually considered to be good barter items during emergencies.     Gold coins can also be used in casinos, where they are priced based on their weight, metal purity and condition.       Their price is determined by the spot price of gold which is set daily by different markets around the world. The value of gold coins are almost never higher than spot price.     Generally, demand for gold coins is very high because it has a numismatic value. When buying gold coins, it is important to be aware that its price may not rise in the future or it could even drop, depending on the country you live in and where you bought them from.

 

 

2) Bullion

Bullion are large bars of metal with the gold content of more than 99%. These are also used by large institutions, central banks.

Each bar has a specific number and weight. Compared to highly decorated gold coins, bullion bars are better for industrial purposes and decoration.

Buying bullion bars can be expensive especially if you’re buying it from a mint itself.

This is due to the premium and taxes levied on each bar. Therefore, it is advisable to buy them from other sources where they sell at a cheaper price.  

As with gold coins, the price of bullion bars are usually set daily by different markets around the world and have a numismatic value as well as industrial purposes.

 

 

3) Gold Bullion Stocks

Gold bullion stocks are securities which give you ownership of physical or some other type of gold which is held by a trust or some other financial institution.

Investors are entitled to the dividends paid by these stocks. If you are not interested in owning physical gold, then gold bullion stocks are better than buying coins and bars because it makes it more convenient.

Gold bullion stocks usually have their value linked to the price of gold which is set daily by different markets around the world.

Bullion stocks are more liquid than physical stock, this is because you can sell them anytime you want to be an interested buyer, unlike bars and coins which you need to find buyers yourself.

 

 

4) Exchange Traded Funds (EFTs)

EFTs are different from physical gold stocks in that they are electronic.

EFTs are not linked to the price of gold, instead, they rise or drop depending on how their underlying assets perform. The way to think about this is that EFTs are like shares of a company, where the company’s assets (e.g. gold) make up its value.

EFTs are traded like stocks, and can offer dividends. They may be bought or sold using margin, which is becoming more popular among EFTs that hold gold.

For investors who want to hold physical silver, there are two options: buy shares in SLV (a silver “ETFS”), or buy spot-silver by itself.

 

 

 

5) Jewelry

The demand for gold jewelry is seasonal which means there are times when it is more in demand than others.

Generally, demand tends to be higher around Christmas and New Year where people buy gifts for each other.

Then it starts tailing off after March or April reaching its lowest point during the summer months.

It is important to note that when you buy jewelry, it has no numismatic value because it does not have the stamp of the mint or any other markings which indicate its gold content and weight.

Instead, they are priced according to their carat weight and metal purity. When buying jewelry in bulk, you should know that different shops price them differently.

Some prices are higher than others and you should bargain to get a better deal.

The premium on gold jewelry is high because of its beautiful designs and attractive craftsmanship.

Gold jewelry makes great gifts especially if they come with custom engravings which can be personal. It is important to note that they are generally more expensive per gram or carat if you buy them in smaller quantities.

The price of gold jewelry can be predicted because it is not volatile. It is subject to the same economic factors as bullion bars and coins with prices rising or falling according to inflation, interest rates and standard of living.

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Bottom Line

Investing in gold is a popular choice for people looking to diversify their portfolios. The most common form of investment are coins, bullion, and ETF stocks.

Coins are the easiest way to invest because you can buy them with cash or trade your old jewelry at many banks for new ones.

Coin dealers sell them by weight so it’s easy to know how much they’re worth when reselling later on. Bullion has higher premiums but may be easier if you’re buying online because there are no shipping costs associated with that type of purchase.

ETFs work like mutual funds where an investor trades shares instead of owning physical assets themselves.