Are you thinking about an investment into gold? One of the most popular methods that investors use to get into gold for the first time is to purchase gold bullion. It’s often the easiest way to get your hands on some gold and it’s also usually a bit cheaper than other gold investment options. It’s a precious metal that comes in two forms: bars and coins.
In short, it is gold that is purchased which has zero numismatic value, which means there is no artistic component to it that makes it become more valuable than the gold itself.
It can take some time to find the right gold bullion to use as an investment. Shop around, take a look at the actual products, and compare prices before finalizing any decision.
Why Is Gold Bullion Such a Good Investment?
For the most part, gold bullion trades pretty close to the quote gold prices that you’ll see on investment tickers every day. There are also smaller premiums when you purchase bullion compared to rare coins. Even small investments will typically have just an 8% premium when you make an investment. That’s also the discount you should expect to pay when you’re turning your gold into liquid cash later on down the road.
Gold bullion also comes in a wide variety of sizes. It can weigh just a few grams when some of the smaller coins are available, while gold bars of bullion could weigh upwards of 3 kilograms. These large bars are generally the type of gold that is considered to be gold bullion, but anything that doesn’t have any artistic value to it actually qualifies. Most bullion today, however, is required to have a 99.5% purity standard – especially when it is in a bar or ingot, but not necessarily if it is an older coin.
Because what one person may find to be artistic is different from what an investor might see as artistic, there are some standards that must be met. If you’re purchasing gold bullion coins as an investment, most of them will have been minted after 1800. They generally have a purity that is .9000 at minimum and were at one point considered to be legal tender.
How Can You Know What Coins Are Considered Bullion?
The European Commission actually publishes a complete list of the gold coins that must be treated as bullion by its member states. This list supplements the law and has legal force. This means that in participating countries, you must purchase the coins that are on the list at bullion prices instead of numismatic prices.
Outside of the member countries, these coins can be treated as numismatic by individual dealers. Using the list as a comparison, however, can help you to make sure you’re getting the best prices possible. Investing into gold bullion bars and coins can be a great way to secure your money! If you’re looking to invest into gold for the first time, then gold bullion might just be the best purchase you could make. Take a look today to see if it is right for you!