Gold coins can be more expensive to produce than gold bars due to their intricate design, emphasis on condition and appearance, and therefore higher labor and machining costs. In addition, the price of a gold bar is mainly based on its weight. Gold coins kept in good condition, like most coins, become a little more sought after as they age. One reason is that coins melt or become damaged.
This is not the case with gold bars, which are worth exactly the amount of gold they contain. Premiums are added to the spot price of gold for a variety of reasons. These are usually due to costs associated with acquiring and manufacturing metals. On the contrary, the main advantage of buying physical gold (such as bullion and coins) is that you own the gold.
In addition, it owns an asset that can be stored outside the financial system, reducing counterparty risk. We produce, purchase and sell gold bullion products for discreet and fully insured delivery to your home or to fully insured professional segregated non-bank storage facilities at prices slightly above the fluctuating spot price of gold. While both gold and silver have attractive features, gold is the best investment for the average investor in precious metals. If you buy gold coins from people or anyone else you are not sure about, first verify their authenticity.
The resulting excesses will force them to fund and hedge (which is punitive) or to re-launch their surplus gold coins and small bars such as big bars, to sell where liquidity is deeper. Gold does not corrode, which provides a sustainable store of value, and humans are physically and emotionally attracted to it. Most would agree that gold has always had value, for all these reasons, a component of decorative jewelry, a currency at some point and as an investment. Your maximum round trip trading costs for Good Delivery bullion in BullionVault would be 1.2%, which is about one-sixth of the typical 7-10 percent cost of selling gold coins.
In calm market conditions, the price range of gold bullion products is as low as mere basis points (i. Arguably, gold is one of the only substances on earth with all the qualities for work, including sustainability). Beyond this small amount, you're unlikely to find a cheaper or easier way than BullionVault to store and secure your gold. At the other end of the spectrum are those who claim that gold is an asset with several intrinsic qualities that make it unique and necessary for investors to keep it in their portfolios.
For them, the convenience of knowing that buyers trust a golden maple rather than a private mint gold bar is paramount. For coin traders, the result is a cycle of scarcity, then excess, which means high prices or low prices at the time of maximum disadvantage for most of their customers. BullionVault takes more care of gold than any other online bullion provider; in fact, the total currently stands at more than 11% of Britain's official gold reserves. It is a member of the London Bullion Market Association and specializes in serving private investors who want to buy and store gold in the form of Good Delivery bars in the wholesale market, although not often whole.
Gold owners looking for storage abroad should try to avoid political instability, negative trade balances and budget deficits, and should look for countries with a healthy interest in maintaining international investor confidence.