subject: With Gold Bullions, You Have To Get In And Get Out [print this page] For those of you who are unaware, there are two different sectors of gold coins out there: those made before the year 1933 and those made after. Though this may just seem like a difference of age, there are significant changes from one time period to another. One of the obvious ones is in the rarity of the coins as there were far less gold coins produced prior to 1933 than what we see nowadays. There is an even bigger difference though and that lies in the market volatility of the coins. Let's take a look at how you might want to approach your gold investments.
If you're looking into a long term investment, pre-1933 gold is the way to go. The rare coins of that era are not subject to as much of the market's fluctuations as the modern bullion is. The value of bullion might change within an hour, but private coins remain fairly steady. Granted, there are still changes in the value of pre-1933 gold, but they are not as frequent or as significant as the changes of the bullions. This is due to a variety of factors, but mainly the older gold and silver coins are able to bypass the pressures of short sellers, so they make for better long term investments.
If all you want to do is get in and out of the market, you are going to see a better return from bullions because they act a bit more like stocks. In a few days time you could see a big change in the money that you put in. Pre-1933 gold is going to move very little for you. It is meant to basically sit there and collect value over time. Thus you must make your gold and silver investments according to the length of time you plan to commit.
If you aren't looking at the financial side of things, then it probably wouldn't matter what you invest in. But who doesn't look at the financial side, right? Even people who collect for fun like to know that what they own holds value. Gold and silver coins are just the same as baseball cars and classic cars in that respect. Just make sure that you know what you want to get out of the market before you waste money on gold coins that aren't going to be worth anything. A little thought time will go a long way.
