subject: The Volatility Of The Gold Bullion [print this page] The modern day gold bullion is certainly a thing of beauty. There are so many ads for these coins nowadays that it might almost seem illogical not to buy them. They sound like a great investment at first, but what most people don't realize is how volatile these coins really are. Unlike the pre-1933 gold coins that you may come across, bullions are non numismatic coins. Rather than being valued by their metal content, they are valued based on market fluctuations. This makes for a very loose system of worth that is really only fitting for short term investments.
When the market is good, bullions are valuable. When the market is bad, bullions are worthless. Thus if you are looking to invest in a gold bullion, you need to consider it as a short term transaction. They are only good for a short period of time before they lose their value again. They make for good investments during certain times in the market, but they are not good in the grand scheme of things. For instance, if you wanted a gold IRA, you would want to back it in gold that was not subject to a lot of change. You won't find that comfort in bullions.
Another thing you have to remember about the gold bullion is that it is subject to gold confiscation. That means that any time the government decides that it is no longer valuable or that they want to take it back, they can. Thus you do not want to hold onto the coins for too long as they do come with a risk. The thought of gold confiscation might just seem like a myth that would never follow through, but it can and will. As the economy continues to plunge, you can be certain that the risk of confiscation is out there.
If you want to make smart gold investments for the long term, you need to start thinking about rare coins. Pre-1933 gold makes for private coins that are solely owned by you and are independent of the government's influences. By putting your money in numismatic coins, you are guaranteed to have a coin of value as precious metals are less fluctuant than general currency. You can be sure that your money will be used properly, and you can always have control over your coins. How you buy gold is completely your decision, but be aware that for the long term, there are better options than bullions
