Gold is Still Relevant in Today’s Portfolios
Back when the economy was a lot weaker financial experts were talking about the value of gold and gold coin prices almost everyday. The stock market was crashing and people were putting a lot of money into gold because it was viewed as a stable investment that would yield much better results than the stock market. Gold did increase in value and people bought more which only drove the price higher. Early investors in gold, those who started before the recession hit, made a lot of money.
Now that the economy has started to recover some investors are tempted to sell their gold and invest back into the stock market. While selling some gold may be advantageous to a portfolio, selling most or all of your gold is not a wise choice. Gold should be maintained as a hedge against inflation and as a source of stability for the overall worth of your portfolio.
Figuring Out Gold Coin Prices
So what determines gold coin prices? Gold is a commodity and the price is determined everyday by how many people demand gold versus how much gold was available. The higher the demand the higher the price, so gold coin prices are driven by the market price. There are numerous gold coins that are recognized the world over, these include:
American Gold Eagles
Canadian Gold Maple Leafs
South African Gold Krugerrands
American Gold Buffalo Coins
The prices of these gold coins is based on the actual amount of gold that is in each coin. Since they are minted by reliable governments the amount of gold is standardized and they each have the same value.
Gold coin prices is the amount you pay a dealer for a coin. Gold coin prices change because of the market economy and how much the dealer charges to sell you the coin. In order to get the best deal it is important you only deal with reputable dealers who won’t overcharge for coins.
The price of gold coins is not the same as the value of gold coins. A gold coin collection is valued at less than what it would cost to replace it because of the fee dealers charge to sell the coins. There is nothing wrong with the fee, that is simply the amount charged to handle the transaction and pay the government fabrication fee. So what you pay for a coin is a little more than the value of the coin.
Gold Still Belongs In Portfolios
Recent economic times and the explosion of gold coin prices show that they are still relevant to financial portfolio strength. Don’t neglect their value against inflation and as a way to preserve and pass along your wealth.
John Doe is an expert in gold coin prices, gold investments, and portfolio management. He has dedicated the majority of his professional career to passing his knowledge along to others.
