Gold coins have been a valuable means of transferring and preserving wealth for thousands of years. While modern investors have access to different ways of retaining prosperity, precious metals can still provide a hedge against inflation and volatility. Below are a few reasons every investor should consider adding gold bullion to their portfolios.
Why You Should Buy Gold Coins
1. Preserve Your Wealth
While cash depreciates over time, gold tends to increase in value. In the 1970s, an ounce of gold would have cost $35. Today, the same amount of metal is worth over $1,000, subject to market variations. By contrast, the $35 in cash would only be worth $250.
Because gold appreciates faster than inflation, it can be a powerful hedge against falling dollar values. Inflation is quickly accelerating around the world, with no end in sight as prices continue to rise. Buying gold now can help protect your investments in these uncertain economic times.
2. Control Over Your Investments
Some trading houses offer gold shares, issued in the form of certificates that can be traded like stocks or bonds. This may seem easier and less risky than owning physical gold bullion, but you do not possess real assets. These certificates only give you an interest in a stockpile of gold, which you do not own. Having gold coins in your physical possession gives you a financial cushion in case of an economic emergency that could render investor shares worthless.
3. Stability in a Volatile Market
While the stock market may outperform gold in some markets, metal commodities appreciate faster in turbulent times. The economic strain caused by the pandemic, disrupted supply lines, and uncertainty could pose a risk to even a surging market.
The stock market has performed well over the past year, but that could change at any time. When it does, your gold bullion can provide the stability you need when financial markets are shaken by volatility. In general, most financial advisors recommend having varied investments, so that when one falls, another can make up for it.
With two locations in Cincinnati and one in Florence, KY, Coins Plus is the region’s premier source for gold bullion and coins. Since 1972, they have become an institution in the numismatic world, with one partner who regularly contributes to the industry’s most popular pricing guides. Visit their website for more on their selection of coins, or call (859) 371-1414 to reach their Florence, KY location. To speak with a gold expert in Cincinnati, call (513) 621-1996.