If you’ve recently decided you would like to invest in bullion, you’ll need to go over a few important options before you make any purchases. That includes if you would like to purchase sovereign bullion or private bullion. Each investment vehicle has its own pros and cons, which means you must spend a little bit of time researching the key differences. Below, the experts from First National Bullion and Coin, the best place to buy gold in Scottsdale, offer a closer look at exactly what these two types of bullion are and which might be right for you.
An Overview of Sovereign & Private Bullion
As the names imply, these two types of bullion are minted by different entities and organizations. Sovereign bullion is minted and backed by an established government, and it’s usually considered to be legal tender in that country. Private bullion, on the other hand, is minted by a private organization and not backed by a country or government. In terms of the value of the bullion and its precious metal content, these two options are nearly the same. That being said, there are some differences all investors should be aware of.
Benefits of Sovereign Bullion
One of the biggest benefits of sovereign bullion is that it acts as legal tender, which improves its liquidity. Another important variable to think about is the fact that sovereign bullion often has serial numbers and limited edition runs, which means the value can increase by quite a bit if you find the right collectors. For many buyers, purchasing sovereign gold bullion gives them peace of mind knowing the precious metal should retain its value for many years to come.
Benefits of Private Bullion
If you want a coin or bar that’s easier to acquire, private bullion could be your best option. There are quite a few companies and organizations that currently mint private bullion, and you can often purchase that precious metal in a matter of minutes. Another benefit of private bullion is the fact that it isn’t protected by a governing body. You can easily melt the bullion down to reuse or sell without worrying about any legal backlash. Finally, private bullion usually won’t go through huge price fluctuations if the country where it was minted is in turmoil.
Which Type Is Right for Me?
There isn’t a single type of bullion that’s right for every investor, which means you’ll need to carefully weigh all of your options. If you want to have bullion that can act as legal tender and is backed by a governing body, sovereign bullion might be the right investment vehicle for you. For those who want bullion that’s easier to acquire and has slightly more flexibility, private bullion could be the best option. The only way to determine which bullion will meet your needs is to go over your investment philosophy and strategy.
When they’re looking for the best place to buy platinum bullion, gold coins, and silver bars, Scottsdale collectors and investors should reach out to the trustworthy professionals at First National Bullion. We can answer all your questions and help you with every aspect of buying and selling precious metals. Give one of our experienced dealers a call today at 480-546-8928.
The statements made in this blog are opinions, and past performance is not indicative of future returns. Precious metals, like all investments, carry risk. Precious metals and coins may appreciate, depreciate, or stay the same in cash value depending on a variety of factors. First National Bullion does not guarantee, and its website and employees make no representation, that any metals for sale will appreciate sufficiently to earn the customers a profit. The decision to buy, sell, or borrow precious metals and which precious metals to purchase, borrow, or sell are made at the customer’s sole discretion.