Gold Coins Or Gold Bars - 6 Things You Should Know Before You Decide

After you have decided on diversifying your portfolio and investing in gold

, you must find out about the best ways to invest in gold.

1.One of the simple and efficient ways of investing in gold is to buy gold bars. While the smaller bars are more expensive, the large bars are available at lower premiums. You must however remember that smaller bars are easier to trade-off as compared to the larger ones. This is because, only larger dealers will prefer buying the large bars.

2.Gold coins, especially the one ounce bullion coins are guaranteed by the government. These coins are less expensive than bars of the same size as they are mass produced. Gold coins are easy to resell as they are universally recognized.

3.Premium is the extra percentage over the current value of gold at which the item trades. The exact premiums and prices of gold coins can vary from hour to hour depending on market factors. As compared to modern gold coins like Krugerrands, older gold coins like sovereigns attract more premiums.

4.If you have to consider only the percentage premiums while making your purchase, the process becomes very simple. Going by the rules, we will automatically conclude that the best gold to purchase is the one kilo bars. A factor that we miss here is the premium prices gold coins, especially the older coins, can be resold at. These coins can be resold to collectors as well as private investors.

5.Krugerrands were moving at four percent premium and sovereigns at a ten percent premium in the last quarter of 1999. Almost all types of coins attract a premium though as compared to the current gold price, our buying price represents a minimal discount. Rather than buying bars, more individual collectors, jewelers and dealers prefer buying coins.

6.Once you have decided on buying gold coins, the next step is to choose between the traditional Swiss Francs or British Sovereign and the modern Krugerrands. Older coins are the best choice if your quantity requirement is small. On the other hand, if you are planning to purchase larger quantities, Krugerrands or bars are the best options.

Your decision depends on the current price of gold and the amount of money you wish to invest. Coins definitely are good investment options for smaller investors and beginners while the larger investors will benefit from gold bars.

by: Adrian Getty

POST COMMENT

Do You Have Courage To Grow Taller?' Hyundai Dealerships In Phoenix Best Place For Used Hyundai Cars What Is An Air Conditioning System? Experience Cool Summers By Air Conditioning Camberley Tornek-rayville Tr-900: A Real "hard" Wrist A Little Forward Planning Ensures Everyone Enjoys The Office Christmas Party Maintaining Your Car In Good Shape Reasons For Why You Need To Opt For An Mba In Accounting Triumph Tiger Coming With Powerful Engine Cellulite Complete Story Air Conditioning Portsmouth Let You Enjoy A Better Life Furnace Air Duct Cleaning Omaha Ask The Dentist In Hollywood: Frequently Asked Questions About Gum Disease! Part 1