It seems we can’t turn on the television or radio without someone advertising to buy or sell our old scrap and unused gold jewelry. The market is changing and as demand for gold increases, so does the desire to start investing. First-time buyers often don’t know what type of precious metal to buy or whether they should purchase rare gold coins or bullion.
“Gold coins” usually refers to the minted and stamped version of gold. Depending on the date and number minted, they can be quite rare and to some extent collectors’ items. While this is partially true it is not always the case. “Gold coins” can also refer to limited edition coins released from the U.S. Mint, such as Double Eagles or Quarter Eagles. Gold coins aren’t always rare and trade-able; sometimes they are and sometimes they aren't.
When one hears the term gold bullion they usually remember seeing large gold bars in movies and TV shows. How could you forget all the gold bars in the more movie, “The Italian Job”? That's usually the image that comes to mind when someone brings up gold bars and gold bullion.
Different Ways to Buy Gold
There are a lot of ways to invest in gold besides the two means listed above. There are gold stocks and equities. A smart investor would take into consideration all of the possibilities and make a worthwhile decision from there.
The misconception about rare coins and bullion is a common mistake. Gold prices are soaring and almost all investment in the yellow metal seems profitable. Many industry insiders, analysts and investors are looking towards the future of gold and other precious metals. The recession, despite all efforts from the U.S. government, doesn’t seem likely to make a quick recovery. Because gold usually sells inversely to the dollar and the dollar has been losing a value on a daily basis, experts are turning to the yellow medal as a safe haven investment.