When it comes to gold investing, one of the first questions you’ll probably have is how to choose between certified coins and bullion. So, what’s the difference between the two of them? We’ll also talk about which investment option is the best and why. So, if you want to learn more about these topics, keep reading.
The following are the differences between certified coins and gold bullion:
A specific design is printed on certified gold coins. They become something more distinct than bullion as a result of the extra shaping. They’ve also gone to the trouble of having their condition assessed by a reputable third-party organization. For all certified coins, one of the two major coin grading services, the Numismatic Guaranty Corporation (NGC) or the Professional Coin Grading Service (PCGS), has evaluated the coin and given it their stamp of approval for the grade listed. As a result of this certification, their value is no longer linked to the bigger gold market.
Bullion is pure gold in its most basic form. The weight and purity of a piece of bullion determine its value. It usually comes in the form of bars or bullion coins. The value of your investment is directly linked to the spot price of gold because bullion is gold in its purest form. Gold’s value rises in tandem with its spot price. When it falls, however, so does the value of gold.
We now know that certified coins are the best investment options after reading both of these. But why is that? Let’s talk about it.
Why Are Certified Coins a Good Investment?
- The Rarity Factor in Certified Coins: A coin pressed at a specific time with a particular inscription is part of a limited release, whereas a bullion bar is like any other. A certified coin is a limited number in the world, just like a work of art or a classic car, is a big part of what gives it value.
- The Authenticity and Condition of Certified Coins Have Been Confirmed by a Third Party: The government guarantees the precious metal content of any proof coin produced by the US Mint, but the certification process goes a step further, ensuring that any certified coin you buy matches the grade and purity it’s labeled as being. You don’t have to trust some random seller who claims the gold coin is valuable; the certification process provides you with a level of assurance.
- Certified Coins Often Retain Their Value When Gold Prices Fall in the Market: This is a critical point. Bullion investments are inextricably linked to the gold market, which can be extremely volatile. While many experts recommend gold as a long-term investment, the price of gold fluctuates like any other market. If you invest the majority of your money in bullion, the value of your gold will fall along with it.
- Coins that have been certified are both interesting and beautiful: One of the first reasons people began using gold as currency hundreds of years ago was because of its beauty. Certified coins allow you to appreciate both the item’s intrinsic value and its monetary value. If you’re interested in collecting rather than just investing, something with character and beauty is worth far more than its price.
Although certified gold coins are more valuable and worthy, many investors advise having both certified coins and gold bullion on hand. Clients of the New York Gold Co. can diversify their financial portfolios with precious metals in numerous ways. Request a free consultation right now.