Category: Gold Investment

Invest in Gold

Gold has captivated humans for millennia, drawing them in with its scarcity and intrinsic value. Universally accepted as a form of payment and store of wealth, gold is highly liquid and can easily be sold in times of need. Its tangible nature makes investing in gold a timeless strategy with numerous benefits. 

Why should you invest in physical gold?

Buying physical gold is a time-honored way to protect your wealth, diversify your investment portfolio, and own a safe haven asset that can protect against inflation and political unrest. 

The main advantages of investing in physical gold are: 

• Wealth preserver: Buying gold is an excellent way to preserve your wealth. Unlike paper currencies, which can lose value over time, gold has intrinsic and enduring value that maintains its purchasing power over the years. As a scarce and inherently valuable metal, gold can help protect your financial legacy across generations. 
• Safe haven asset: Gold is considered a safe haven asset that can protect your assets during periods of political and economic instability. Whether it’s geopolitical tensions, a failed currency, or falling economy, smart investors are known to flock to gold during times of trouble to safeguard their wealth.
• Hedge against inflation: Gold has a well-documented history of maintaining its value during periods of inflation, rising by more than 15% in years when inflation is high. When the cost of living increases or the U.S. dollar falls, gold tends to appreciate in value, helping investors retain their purchasing power.
• Portfolio diversifier: Adding gold to your investment portfolio can diversify your assets and reduce overall risk. Unlike stocks and bonds, gold’s value doesn’t move with traditional financial markets – in fact, it moves the opposite way. This means that when stocks and bonds fall, gold’s value tends to rise. This provides a buffer against volatile markets. 
• Liquid asset: Physical gold is a highly liquid asset that can easily be bought and sold regardless of the form (i.e. bars, coins, or jewelry). This makes it a flexible investment that can easily be converted to cash in times of need, no matter where you are in the world. 

How to invest in physical gold

There are two main ways to invest in physical gold: buying gold bars or gold coins. Each of these gold investments are worthwhile depending on your investment goals, budget, and interests. 

To help you decide which gold investment is best for you, we compare gold bars vs gold coins below. 

Gold bars

Gold bars, also known as gold bullion or gold ingots, are blocks of high-purity gold at least 999.5% or higher. They come in various sizes, ranging from small one-gram gold bars to large 400-ounce gold bars. Depending on their weight, they can be either cast or minted. Smaller gold bars tend to be minted using heavy machinery while larger gold bars are cast by pouring molten gold into a mold. 

Gold bars are manufactured by sovereign mints, such as the United States Mint, and private refineries, like PAMP Suisse. They are mostly rectangular in shape and come marked with the manufacturer’s logo, weight, fineness, and serial number. 

Pros and cons of investing in gold bars

Like any investment, there are certain advantages and drawbacks to investing in gold bars. 

Pros of Investing in Gold Bars

Cons of Investing in Gold Bars

Lower Premiums: Gold bars tend to have lower premiums over the spot price of gold when compared to other gold investments, which means you get more gold for the same amount of money. Easier storage: Because of their uniform shape and size, gold bars are easy to stack and store compared to gold coins. Bulk investment: Gold bars are ideal for investors who want to purchase gold in bulk, allowing you to own a significant amount of the metal in just a single purchase.

Less liquid: Once you have purchased a gold bar, you can’t sell off a portion of it without melting it down. This means that larger, more high-value gold bars can be less liquid than smaller bars or gold coins. Finding a buyer can take a lot of time and effort.

Gold coins

Investment-grade gold coins look similar to the circulation coins we use in everyday transactions, but they are much more valuable. To be considered investment-grade bullion, gold coins must be made from between 99.5% and 99.99% pure gold.

Gold coins are manufactured by government mints that guarantee their weight and purity, which then determines their value and price. This makes them different from collectible coins, or numismatic coins, which are valued based on their rarity or historical significance. Most gold coins are made from 99.99% pure gold, although the content will vary depending on the type of coin. 

Some of the most popular and well-known gold coins are the South African Krugerrand, American Gold Eagle, and Vienna Philharmonic. Like gold bars, coins come in various denominations, from 1/10 ounce up to 2 ounces. This makes them accessible to a wide range of investors and provides an easy entry point into gold investing. 

Pros and cons of investing in gold coins

Let’s look at the advantages and disadvantages of investing in gold coins.

Pros of Investing in Gold Coins

Cons of Investing in Gold Coins

Highly Liquid: Gold coins are easy to buy and sell. Their smaller sizes and widespread recognition make them more accessible to a wider range of buyers and sellers. Affordable: Because they come in a range of denominations, gold coins make it easy to buy gold without having to invest large sums of money. Easy to authenticate: Gold coins have recognizable designs and standardized minting that makes it relatively easy to verify authenticity and purity (if no assay certificate is provided). Collectible Value: Some gold coins have numismatic value, which means they can be worth more than their gold content due to rarity or historical significance.

Higher Premiums: Gold coins can sometimes carry higher premiums over the spot price of gold when compared to gold bars. This means you’d be paying more for the same amount of gold.  Not for Bulk Investments: If you’re looking to buy large quantities of gold, coins aren’t the way to do it. You’ll be paying higher premiums and need to buy several pieces. Potential for Counterfeits: While gold coins are usually easy to verify and authenticate, there can still be risks of buying a counterfeit. Be sure to buy from a reputable dealer.

Gold bars vs coins

If you’re still not sure whether gold bars vs gold coins are a better investment for you, let’s quickly recap: 

• Gold Bars: Less liquid but have lower premiums. Best for large, long-term investments or for those focused on preserving wealth over generations. 
• Gold Coins: More liquid and more affordable, but have higher premiums and carry counterfeit risks. Best for smaller investments, investors seeking flexibility and liquidity, and collectors interested in numismatic value. 

Ready to start investing? Search the most reputable precious metals dealers for the best gold bars and coins with Metals Radar’s comparison engine. We do the hard work so you can make the most of your money and start investing now.

Other ways to invest in gold

Besides buying physical gold in the form of bullion coins and bars, you can also invest in gold by purchasing: 

• Gold jewelry: This can be an enduring investment, although not as valuable as investment-grade coins and bars which are usually higher purity. 
• Gold exchange-traded funds (gold ETFs): You can think of ETFs like gold stocks that allow you to benefit from the gold market without having to physically buy the precious metal. For example, you might buy shares in a gold mining company. 
• Gold futures: These are contracts traded on commodity exchanges in which buyers agree to buy a specific amount of gold at a predetermined price on a future date.
• Gold mining stocks: You could also purchase stocks in gold mining companies to benefit from gold via their operations and sales.

While these forms of gold investments have their value, nothing beats the tangible nature of investing in physical gold that you can hold in your hand and have complete ownership over. To start investing in physical gold, use Metals Radar’s comparison tool to find unbeatable deals from the world’s best precious metals dealers.

What affects the price of gold?

When you buy gold online, it’s usually displayed in U.S. Dollars and priced per troy ounce. To help you better understand gold prices, let’s take a look at factors that influence it:

• Supply & Demand: Gold is a scarce metal with limited supply. Increased demand can drive the price of gold up while increased production can decrease prices. 
• Strength of the U.S. Dollar: The price of gold is inverse to the value of the U.S. Dollar. This means that when the U.S. Dollar is weak, gold’s price tends to increase and vice versa. 
• Interest Rates: Lower interest rates tend to raise the price of gold as they decrease the opportunity cost of holding non-yielding assets like gold. 
• Economic Conditions: During periods of high inflation, gold’s price tends to increase while the value of paper currency declines. The same happens during economic downturns or periods of uncertainty.
• Geopolitical Events: As a safe haven asset, the price of gold can increase during political instability, wars, conflicts, or changes in government policy. 

Buy gold bullion bars and coins in the United States, USA

The best way to benefit from gold’s qualities is to buy physical gold in the form of gold bullion bars and coins. You’re already on our gold page, which means you’re one step closer to securing a valuable investment that’ll preserve your wealth for generations to come. 

Explore Metals Radar’s comparison engine to view the best prices for gold bars and coins from the most reputable dealers on the market. Investing in gold has never been so easy.