Gold is often advertised on television, where it's touted by celebrity sponsors as a solid asset. But as the Federal Trade Commission (FTC) has warned, gold promoters often mislead inexperienced buyers. Therefore, while gold can look good in your portfolio, it's crucial to know about the stability and value of each prospective gold investment.
Stocks and Funds
Two of the most common ways to invest in gold is to buy stock (such as in mining firms) or to buy into mutual funds (such as in gold bullion.) Neither is totally secure, however, because stocks and mutual funds can drop in value over time. In any case, investments like these should only be made through licensed brokers.
Bullion is bulk quantity precious metal, and it usually comes in gold, silver, or platinum. The value of bullion is based on the content itself, as opposed to the rarity. Bullion is sometimes sold by banks, but not used in commerce. Since 1986, gold and silver bullion have been produced by the U.S. Mint, which guarantees the weight and purity of their coins.
Whether gold, silver, or bronze, a coin can gain a market value far beyond its face value due to factors like age, scarcity, design, content, or historical significance. In market speak, the collectible value of a coin is often referred to as numismatic value. Dealers who sell these types of coins will usually have them appraised by professional graders.
If you need advice on a gold investment, Coins of the Realm can help. For more than 40 years, we have sold and appraised gold, silver, stamps, and jewelry. Collectors throughout Gaithersburg have come to us for professional grading of precious metals, and you can learn more about our services at our website or by calling (301) 340-1640.