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 Gold $1,789.70   $-20.50  Silver $22.74   $-0.67  Platinum $974.80   $1.00  Palladium $2,435.70   $76.00

Investments in gold bullion and numismatic gold each have distinct benefits and can hedge investment portfolios against shifting trends in the financial markets. Bullion bars, government or private bullion coinage, and gold coins that carry a premium because of scarcity or collectability are ideal for individual investors and hedge funds alike. After deciding to buy gold, San Diego investors should know these specific details about each investment vehicle.

Gold Bullion Bars

For large quantities of physical gold, bullion bars are among the best investment vehicles. In general, these bars carry a lower premium over the spot price of gold at the time of purchase. However, there may be bars and brands that carry higher premiums depending on the scarcity and desirability of the bars. Most governments don’t offer bullion bars to the public, but there are many private mints that offer bars in varying weights, such as grams, ounces, and kilos. Bars are easy to trade or purchase, but they typically aren’t considered legal tender by governments.

Gold Bullion Coins

Alternatively, government mints often produce gold bullion coinage that’s recognized as legal tender. However, the currency value typically is much less than the spot price of gold, making it an unwise move to spend the coins at face value. Bullion coins are usually sold in ounces, with one ounce being the most popular weight. Bullion coins usually have beautiful designs and are well made, making them valuable to some collectors. In general, these coins sell for a low premium over the spot price unless the coins are in MS70 condition. High-grade coins have the potential to sell for a premium.

Numismatic Gold

There are gold coins that can sell for a substantial premium over the spot price because of the numismatic value of the pieces. The term “numismatic” refers to the collectability and study of currency. For example, American gold coins from the 19th century and earlier that are considered high grade on the Sheldon Scale typically carry a numismatic premium. Rare gold coins are an ideal investment for those who want to own gold and assets that appreciate over time, given the scarcity of the investment vehicle. Numismatic gold is also enjoyable because it represents different periods in history, and each coin has its own story.

Portfolio Diversification

There are benefits to owning bullion bars, bullion coins, and numismatic gold. While you may want to invest in bars if you want to hold large quantities, it may be beneficial to hold bullion coins if you want to trade for other goods and services. Similarly, it may be ideal to hold on to some numismatic gold in the event the collectible coin market skyrockets. Holding some of each investment vehicle allows you to diversify your investment portfolio and take advantage of everything this precious metal can offer. 

When they’re looking to purchase gold coins or buy gold bars, San Diego collectors know they can trust the reliable professionals at First National Bullion. We can answer all your questions and help you find all the information you need on how gold can figure into your investment decisions. Give one of our experienced dealers a call today at 858-666-6570.

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.

By |2020-07-14T14:20:06-07:00April 6th, 2020|Miscellaneous|0 Comments