The Pros and Cons of Investing in Small Gold Coins, Revealed

26% of Americans think that gold is the greatest long-term investment.

It’s incredible to know that there are various ways to invest in this precious metal. One option that often comes up is investing in small gold coins.

Should you start investing in small gold coins? Read on to break down the investing perks and drawbacks.

Pro: Accessibility

Small gold coins are more affordable than larger gold bars, making them accessible to a broader range of investors. You can start your gold investing journey with a smaller budget.

Pro: Liquidity

Gold coins are highly liquid assets. They are easier to sell than larger gold bars, which may require additional steps for authentication and verification.

Pro: Portability

Small gold coins are portable and easy to store. You can keep them in a home safe or a safety deposit box, which makes it convenient to manage your investment.

Pro: Diversification

Investing in different types of gold coins allows for diversification in your precious metals portfolio. You can choose from various denominations, countries, and designs to spread your risk.

Pro: Collectible Value

Some gold coins, such as commemorative or limited-edition coins, can have collectible value in addition to their intrinsic gold value. This potential for extra profit appeals to collectors and investors alike.

Pro: Beating Inflation

People have loved gold investing because it can help fight against inflation and economic instability. Small gold coins allow you to safeguard your wealth against the devaluation of currency.

Con: Storage Costs

When it comes to gold coins vs gold bars, small gold coins are easier to store than larger bars. There are still storage costs involved, though, especially if you opt for a secure storage facility.

Con: Risk of Counterfeits

Smaller coins, like gold quarters, are more susceptible to counterfeiting since fraudsters may find it easier to replicate them. Ensuring authenticity can be a concern, especially when purchasing from less reputable sources.

Con: Limited Investment Size

If you have a significant amount of capital to invest, small gold coins may not be the most efficient way to do so. Larger bars or other gold investment methods might be more suitable.

Con: Capital Gains Tax

Depending on your country’s tax regulations, profits from selling gold coins may be subject to capital gains tax. This will reduce your overall returns.

Types of Gold Coins

It’s helpful to learn about the different ways to invest in gold.

Bullion coins are standard investment coins produced by government mints and typically have low premiums over the spot price. Numismatic coins are collectible coins with historical or artistic value in addition to their gold content.

Commemorative coins are issued to mark special events or anniversaries. Gold quarters are a specific type of gold coin, usually referring to US 1/4 ounce Gold Eagles or other similar coins.

Investing in Small Gold Coins Can Be Great

Investing in small gold coins has its advantages, and many investors believe they outweigh any potential drawbacks. The choice between gold coins and other ways to invest in gold depends on your individual preferences in the world of gold investing.

Are you eager to invest in legitimate gold? Contact CMI Gold & Silver so we can help you start investing. We’re the oldest bullion dealer in the US.

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