Things to know while investing in Gold coins

Gold has remained an attraction and a symbol of wealth since the beginning of recorded history. It has been used on and off for aesthetic purposes as well as for investment purposes. Moreover, over the years the fascination of gold among investors and people interested in ornaments and jewelry has hardly diminished. Even when the economy gets a bit shaky and the stock market goes down, gold is considered a safe haven amongst the investors. Gold has maintained its intrinsic value. For instance, during the earlier stages of the pandemic, interest in gold surged and then recession followed it, the investors willing to buy gold coins and bars invested in gold as it is considered a safe asset to park money.

 Why do investors like to invest in gold?

Gold is not just about buying flashy ornaments, but it also offers a great form of saving and good returns on the money that you are going to invest. Even though gold doesn’t help in producing cash flow but it is perceived as a store of value. Buying a gold coin is a direct way of investing in gold apart from buying gold jewelry. It is seen as a hedge against inflation and purity of these coins vary from 22 to 24 karats, also readily available in different sizes or the weight required by the investors.

 Important things to know- when you buy gold coins!

Many prefer investing in gold coins rather than jewelry. If you are planning to buy gold coins, here is a list of few features that should be taken into consideration while buying gold in general:

 ●   Purity of Gold coins

There are primarily two ways to gauge or measure the purity of gold coins- Karat and Fineness. Although organized refiners adopt standard purities, and most of the gold coins are sold as 22 karats. The purity of gold is commonly measured across in karats and for investment in gold, coins are available either in 22 Karat or 24 Karat.

22 Karat gold contains 22 parts of gold and 2 parts of other metals to give it a solid shape while making it more durable, other metals include zinc or silver. Similarly, 24 Karat is considered to be the purest form of gold which contains 24 out of 24 parts of gold.

Another aspect is fineness, which states that even the purest of the gold coin can contain some impurities to measure it, fineness is defined as the weight of gold in proportion to other metals.

●   Hallmark on gold coin

Hallmarks are important whether you are purchasing jewelry, a gold bar or a gold coin. Hallmark ensures that the gold commodity which you have bought is pure and the investor is getting the same thing they are paying for. In the process the gold undergoes evaluation and tests at an official hallmarking center and then it is certified claiming the purity according to the standards. Buying hallmarked and certified coins can save you a lot of effort and time otherwise you will have to hustle for a quality test to prove its authenticity to get recognition for your investment.

●   The design of gold coins

There is a wide range of gold coins readily available in the market. Though from the variety they fall in two main categories, standard bullion coins and rare coins known as numismatic.

Moreover, coins depicting Queen Victoria, Edward VII, maple leaf, Kangaroo are also available worldwide.

Standard coins are simply gold coins made exclusively from precious metals, in this case made of gold. These are highly refined, available in 22K and 24K gold and are viewed primarily from an investment point of view. Numismatic coins are bought and sold exclusively by coin collector shops. However, their value is not based on the total proportion of gold content in it but on the rarity and it’s condition.