Usually investors are always on the lookout to hedge their portfolio and diversify their investment especially during the worldwide economy recession and devaluation of fiat currency. With gold price steadily increasing to record high, gold bars and gold coins are always in high demand but most people actually prefer gold coins due to its smaller size and denominations including its viability to be used as a currency.Gold coins typically cost more than the actual gold weight contain in the coin itself and the difference could be at least 4 to 7 percent markup due to the minting and distribution cost. Basically there are two types of gold coins, one is the bullion coin and another is the collectible coin. Bullion basically refers to the form of metal in which the value is derived from the current market rate plus with the additional premium cost mentioned earlier. On the other hand, collectibles are not priced based on weight value but instead rely on rarity, age and condition. These type of coins are assigned a certain value based on their beauty and historical relatedness and as such usually they command much higher price compared to bullion coins.
Buying gold coins is a form of secure investment because the gold will always retain a certain value and worth regardless of whether the economy is good or bad. And because, collectible coins are very rare and sold at premium price, investor’s focus has always been on bullion coins.
