With the volatility of stock markets and currency fluctuations, safe investments aren’t always easy to find. However, many investors are choosing bullion or numismatic coins to increase their savings and boost their overall wealth.
While every investor has different needs and plans, these two investments provide a number of advantages. The only question is which option is a better choice for you Bullion or Numismatic Coins?
What are the Differences Between Bullion and Numismatic Coins?
Before diving into the investment side of bullion and numismatic coins, it’s important to know the difference between the two. Bullion is a precious metal such as gold or silver.
Although many investors choose to purchase these in bar form, buying coins made from these precious metals also falls under the definition of bullion.
The interesting aspect of bullion coins is that the source country is inconsequential. Regardless of where the coin is minted, the intrinsic value of the metal stays the same.
Numismatic coins are coins that have an inherent value above that of bullion. This means that the coins are collectible, giving them added value if you wish to sell them to a collector. Numerous factors — such as historical value, rarity, or special marks — affect the value of these coins.
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Purchasing Bullion as an Investment
On August 15, 1971, President Nixon announced that the U.S. dollar would no longer be convertible to gold in international markets. Known as the gold standard, this system went out of favor due to economic instability. The result was that gold bullion became a separate investment entirely.
Purchasing bullion an investment then became another option for investors. As a short-term investment, few other options can beat bullion, especially if you use small changes in the price of the precious metal to buy low and sell high.
Bullion is also an option if you want to save money via an individual retirement account (IRA). A precious metal IRA is a tool that enables you to lower your tax liability while enabling your bullion investment to grow over time.
Choosing Numismatic Coins as an Investment
Although purchasing numismatic coins may seem like a hobby or a quick way to make some cash, they’re actually a strong long-term investment. As long as these coins are kept in a safe place and pristine condition, the likelihood of them falling in value is slim. Because they hold value over bullion, they’re worth more in the long run, and their value can only increase over a period of time.
As an investment, numismatic coins are best if held for at least 10 years to maximize your profit when you sell them. Numismatic coins are not eligible for a precious metal IRA, which is an unfortunate downside. Regardless of this fact, these coins are a sound investment. You may also want to couple bullion investment with numismatic coins to take advantage of drops in the price of gold and for a liquid portfolio of both long-term and short-term investments.
Purchasing either bullion and numismatic coins are proven ways to build wealth during market volatility and other changes in the domestic or global economy. However, numismatic coins offer value that’s almost impervious to market fluctuations. Not only do these coins have the value of bullion, but they can also appreciate in value. If you have the capital, the resources, and conduct due diligence with regard to research, numismatic coins are an excellent investment opportunity.
London Coin Galleries in Newport Beach is an Orange County coin dealer. Buy, sell or value both bullion, precious metals, and numismatic coins. Contact us to book an appointment or request a quote for all your bullion or numismatic coin purchases.