Unlike paper money, coins or other assets, gold has maintained its value over the centuries. Gold coins are beautiful. There is no doubt that a shiny gold coin is a beautiful thing to look at. But if you buy one, that's all you get.
Sure, the price of the currency will rise and fall with the value of gold, but you would have to sell it to benefit from price increases. You're more likely to put gold in a safe and forget that you have it while you wait for the modern financial world to collapse. Gold stocks tend to be more attractive to growth investors than to income investors. Gold stocks generally rise and fall with the price of gold, but there are well-managed mining companies that are profitable even when the price of gold falls.
Rises in the price of gold are often magnified by gold stock prices. A relatively small increase in the price of gold can generate significant gains in the best gold stocks, and owners of gold stocks tend to earn a much higher return on investment (ROI) than owners of physical gold. Gold bars have little historical or traditional value and are traded solely for their gold content. In addition, several central banks have increased their current gold reserves, reflecting long-term concern for the global economy.
If you want to get the best return on investment on your gold products, you'll want to buy from a merchant who charges the most competitive gold premiums for their products. For people who have faith in the long-term value of gold as a commodity, having a large number of gold pieces is undoubtedly important. If you plan to buy fractional gold coins and invest in a new fractional gold ingot, consider reading local and state tax laws on buying bullion. There are many reasons why the average consumer would want to buy fractional gold coins or gold coins of smaller denominations of popular pieces of ingots.
If you want your gold to be more than just a financial investment, maybe you'll even start a collection of gold coins, then the coins are for you. BullionVault manages more gold than any other online bullion provider; in fact, the total currently represents more than 11% of Britain's official gold reserves. Fractional gold coins allow people to take advantage of the high value and long-term collectability of gold without spending thousands of dollars at a time. And more and more ingot consumers are starting to realize how fantastic gifts gold, silver and other precious metals can be.
This definitely works best when you don't need to itemize your gold coins or expand your family insurance. In general, the value of a given quantity of gold bars can be determined very easily, since the equivalent weight and purity are recorded in the metal itself and the value of that metal is governed by the spot price of live gold. Producers usually buy their gold in the form of Good Delivery ingots, so these additional charges apply when converting large ingots into smaller items and, of course, the costs are passed on to the final buyer. Gold coins are exempt from VAT if they qualify as investment gold according to HMRC rules and EU Commission rules.