Why Invest in Gold Coins

It’s a fact that today’s most strong currencies don’t have a stable position. There would come a time that its value will eventually fall down. Investors who are into stability will most likely invest in bullions. It is a coin struck from precious metal and kept as a store of value or an investment, rather than being used in everyday commerce. Common bullions are gold, silver and platinum. These precious will not tarnish and will continue to have a high value and will not be affected by any changes of rate among major currencies.

It has been learned that there is a stable rise in the graph of gold investment so among any other investment options; it is so far the best one to have.

There are several ways on how to invest gold. One of which is through acquiring gold coins and bars. Examples of these gold bullions are South Africa Krugerrand, US Mint Eagles and Canadian Loons and they can be obtained from government and private dealers like golden eagle. These pieces of metal are in a form that can be stored properly and can be used during times of desperate need. One thing that the buyer should make sure would be its authentic mint packing. This will preserve its value and would allow a guaranteed appreciating reselling value.

Aside from gold coins and bars, an investor could also buy shares in some of the major gold mining corporations. These companies will continue to operate and will shoot up their sales as long as the demand for gold coins and bars exist. However, one should be wise enough to have the necessary background check of the company most especially its future financial growth.  If you can sense an impending loss, don’t hesitate to sell your shares immediately.

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Adding Gold Investment to Your Financial Portfolio

These days, people are turning to gold investment as a means to diversify their financial portfolio as well as to set up a hedge against possible adverse movements in the financial markets over the long term. There are different ways through which you can use this precious metal as part of your investment portfolio. With the right information and guidance you can reap substantial benefits from this type of investment. You can opt to invest in gold coins and bullions or trade the market with gold-related funds and stocks.

As always, your choice of investment instrument would have to depend on your investment profile. The risks involved would differ from one form of gold investment to another. Yields likewise differ in the same way.

gold investment

These are the three most popular ways of setting up your gold investment:

Buying physical gold – this generally refers to gold coins and bullions. There are regulations that you should be aware about in the buying and selling of physical gold. There are also charges that could easily add up to a huge investment expense. This includes transaction fees, taxes, and insurance. And then there is the matter of storage for your physical gold. The value of your investment would depend on the value of gold in the market.

Buying mining stocks – you can indirectly invest in gold by buying stocks in mining stocks of companies that deal with gold. You can find these companies in the stock exchange. The downside of this kind of investment is that its prices do not depend solely on the price of gold. Share prices depend on the company. In times when there are operational concerns that crop up and affect the business, the value of shares could plunge even when the value of gold itself is on the rise.

Trading ETFs or futures – these are relatively inexpensive investments in gold. Putting money in exchange traded funds and futures allows you to ride the market fluctuations without risking a huge amount of money. Choosing which ETFs or futures to invest in should be done wisely. Looking a past performance of funds will give you an idea of how well these funds are being managed. Fund managers are more proactive in keeping the basket of investments in the ETFs at profitable levels. However, there are still risks of fund values going down. The good thing is that you do not have to lose money when this happens. You simply have to wait until fund values are up again to collect your gains. In the meantime, while share prices are low, you might want to think about increasing the number of shares you have in your portfolio.

Image Credit: www.bullionstreet.com

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The Year 2001 Ten-Peso Coins

Not only one or two persons told us that the year 2001 ten-peso coin can be sold for two hundred pesos (P200). How’s that possible? The ten peso-coin is made up of two alloys: the inner part is aluminum-bronze while the outer part is cupro-nickel. But according to some friends, the inner part of the ten-peso coins released in the year 2001 contains gold.

We did not want to believe but still we gave it the benefit of the doubt. It may be not as much as the gold bullion but it’s quite a big amount of money if we can collect at least 100 pieces so hubby started collecting. As of now, we have 30 pieces of year 2001 ten-peso coins. However, after doing some research, it turned out that it is a hoax. The inner part of the Philippine ten-peso coins released since 2000 up to the present has 92% copper, 6% aluminum and 2% nickel.

Yes, it was a lesson learned. We must do our research first before believing in what other people say. Central Bank follows a procedure in minting of coins. There’s no special reason or occasion why the 2001 batch of ten-peso coins have to be minted with gold. At least we were able to save three hundred pesos (P300)…more than enough for a half gallon of ice cream. Lol!

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