Whether you are new to gold or have been investing/collecting for years, there is always space for a new piece of gold in your portfolio. Gold has long been the most well-known asset to use as a store of wealth. Since gold was first discovered, it has held great importance to our society. If we use history as an indication, gold will always hold this significance.
The first record of gold being smelted down was in 3600 B.C. by Egyptian goldsmiths, mostly smelted for its value as a commodity. 1000 years later, we have the first records of gold being used as jewelry. Gold’s beauty caught humans’ eyes from the beginning of civilization and is still seen in the same light.
In 560 B.C., the first gold coins were struck in Lydia, the Iron Age Kingdom in Western Asia Minor. This marked a pivotal moment for gold. Greek and Roman Empires followed suit and minted their own gold coins. Although gold held value before this moment, its value could now be realized in the form of currency. Although gold is no longer used as a mechanism for trade, its value as a store of wealth has stayed steady.
So, why should you buy gold?
Gold has maintained its value better than any other financial holding. Let’s say you lived 2000 years ago; one ounce of gold would let you buy around 350 loaves of bread. Today, if you had one ounce of gold, that could buy you about 350 loaves. 2000 years have passed, yet gold still has been maintained in real purchasing power.
This is a great sign for investors looking for a safe way to store their wealth. Despite the price of gold fluctuating in the near term, historically it has always returned to its real purchasing power. This trend will not disappear, as gold is still seen as a safe-haven asset, and will always have intrinsic value.
During times of instability, gold prices tend to hold their value. During Germany’s inflation period from 1918 to 1924, its currency became severely diminished, but the purchasing power of gold remained virtually unchanged. In the United States, over the past century, we have seen inflation cause the dollar to lose much of its purchasing power. Over this same time, gold has not.
Gold is a great asset to diversify your portfolio. Gold does not directly correlate to stocks or bonds, meaning that in an economic downturn, gold does not have to go down. This is why gold is seen as a hedge against the economy because, during a crisis, gold can become more valuable.
Gold is also a beautiful, natural metal that holds emotional value in our society. Gold possesses stunning colors that make people turn their heads when they see it. This is the reason the highest nobility has worn gold as jewelry for thousands of years. It also does not rust or tarnish, letting the elegance last for lifetimes. Gold is a meaningful aspect of our society because of the way we view the precious metal.
Gold is a tangible way to store your wealth, and will always have value, both in good times and in bad times. If you are looking for a new investment opportunity, gold is a low-risk asset that will be a great addition to your portfolio.
What type of gold should you buy?
There are two main varieties of gold bullion investment, gold coins and gold bars. Both bars and coins are easily transportable, liquid, and stable. Gold bars are great because they usually have less of a premium than gold coins, meaning you can get more gold for every dollar you spend. There are usually higher weights with bars, also leading to a lower price per ounce of gold. Gold bars are also easy to store because of their compact nature, and high value for low weight. Many high-volume gold investors tend to buy gold bars to increase their position, as it is the most economical way to add gold to your collection.
Gold coins are also a great choice for investors or collectors. The allure of gold coins has been around for thousands of years. There is a much larger variety of gold coins than gold bars. There are many different sizes, rarities, and designs among coins, making it so there is something for everyone. Many coins are minted by governments, guaranteeing their quality. Gold coins also have great liquidity due to their high demand. Part of this reason is because of their collectability. Like art, many gold coins are collectibles due to their rarity, design, condition, and demand.
When looking to buy gold coins, here are some of the most popular:
The South African Krugerrand was the first modern investment-quality coin created by a national government in 1967. At one point, it accounted for 90% of the gold bullion coin market. It depicts President Paul Kruger on the obverse and a springbok antelope, the country’s national animal, on the reverse.
The American Gold Eagle is the US Mint’s most popular gold coin and is one of the most popular gold coins internationally. The 2022 coin features a new design, first released in mid-2021. The obverse features a rendition of Lady Liberty, and the reverse shows a profile depiction of the American Bald Eagle.
The Candian Gold Maple Leaf is another popular choice among gold coins. Known for the symbolic maple leaf on the reverse of the coin, the Gold Maple Leaf is highly sought-after by investors and collectors. The obverse face displays a portrait of Queen Elizabeth II.
The British Gold Britannia is the staple coin of the Royal Mint. This classic coin is highly recognized across the industry for its craftsmanship and beauty. It also includes many detailed security features to ensure you receive the correct coin. The obverse depicts an effigy of Queen Elizabeth II and the reverse depicts Britannia defending her country.
The Austrian Gold Philharmonic is another excellent series of gold coins. These coins are minted in commemoration of the Vienna Philharmonic Orchestra. These high-quality coins highlight instruments such as violins, harps, and Viennese horns on the reverse, and feature the pipe organ found in the Musikverein on the obverse.
The Chinese Gold Panda is a favorite for many investors and collectors around the world. Each year, with the exception of 2001 and 2002, the reverse face of the coin changes to highlight the panda species in a different light. This makes each year’s design unique. The obverse displays an image of the Temple of Heaven.
All of these coins are highly respected gold coins that have extremely high standards. This has made these coins valuable commodities and very liquid assets. There will always be a market for these coins, which has led them to become the most prominent coins on the market.
GoldClub Direct offers all of the coins listed above, as well as others, on their website. They also offer gold bars and gold rounds from various reputable private mints around the world. If you are looking for any gold products to add to your collection, look no further than GoldClub Direct to find the best available products for the most competitive prices on the internet.
All Updates and Market info are provided as a third party analysis and do not necessarily reflect the explicit views of GoldClubDirect LLC.. and should not be construed as financial advice.