Buy Gold Bullion Coins The Smart Way

Planning to buy gold bullion? It’s never a bad idea to invest in gold. The appeal that gold has held for man since the earliest of times continues well to this day in the modern era with good reason. Say you need $40,000 a year to survive and you want to secure your future for the next ten years. So you plan to set aside $400,000, planning to spend $40,000 every year for the next ten years. But this plan will not work. It’s simply because your lifestyle, which is costs $40,000 this year, might cost you $50,000 next year, $60,000 the year after, and so on.

It’s because the value of currency constantly decreases and your ten-year plan will be seriously short-changed if you make you calculation on monetary terms alone. If instead, you buy gold bullion, reserve $40,000 worth of gold in today’s money for each year, they’ll sell for the corresponding higher cash value that you’ll need to compensate for the increase in the values of goods and services every year. You can buy gold bullion in two forms in the market today – coins and bars.

Coins are minted i.e. cut from larger blanks. Some small gold bars are also manufactured the same way. Large gold bars are cast, a manufacturing process where molten gold is poured into a brick shaped cavity and on solidification takes the shape of the cavity. Gold coins have stricter quality regulations compared to gold bars and have a better surface finish. Gold bullion coins are priced by their fine weight and have an added cost factor called premium, which is calculated, based on demand and supply. They are different from numismatic gold coins where the supply and demand factor is the predominant cost factor.

Some common gold bullion coins are the Australian Gold Nugget, Austrian Philharmoniker, Austrian 100 Corona, Canadian Gold Maple Leaf, French Coq d’Or, Chinese Gold Panda, Mexican Gold 50 Peso, British Sovereign, and American Gold Eagle. But the South African Krugerrand, first minted in 1967 to help market South African gold is by far the most common and most popular gold coin in the world with more than 41 million pieces in circulation with a combined total weight of 1400 ton.

As a general rule, the older and more established and more reputed a dealer is the better are your chances to buy gold bullion without being cheated. Avoid less reputed dealers, like pawnbrokers who would lure you with a deal that is simply too good to be true (because it isn’t). You might end up with gold plated pieces of cheap metal instead of gold bullion coins.

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