What kind of gold should i buy

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Don't worry, we're here to answer all of your questions. The best gold products for each investor or collector is a matter determined by their individual goals. We will break down gold products by category and examine some of the options available for each. This will help you narrow your focus on certain types of gold products, giving you a good idea of what to look for when shopping at your coin or bullion dealer.

When many people think of Fort Knox, the image of gold bars come to mind. Why is so much of the gold there stocked in the form of bars? Bars fit nearly in small spaces like a safety deposit box. Dollar for dollar, gram for gram, gold bullion bars have lower premiums over gold's spot price.

There are more options in sizes with gold bars than one may find in other forms of physical gold. The same goes for gold coins and gold rounds on the higher side of the size spectrum. Good luck tracking down a 1 kilo gold coin or gold round! Those investing in a lot of gold will usually find it cheaper to buy fewer large-sized bars than the equivalent total weight in small-sized bars.

Even so, small bars generally cost less to purchase individually than the same amount of gold in the form of rounds or government-issued coins.

Modern gold bars adhere to a. Vintage gold bars may have been made to a. Both types are 24K gold. Bottom Line: Gold bars almost always have the lowest premium over gold's spot price. Gold rounds also known as medals represent something of a compromise between buying gold bars and gold coins. Gold rounds are generally produced in the size and purity that most people expect to find with gold coins.

Those who want a collectible element to the gold products that they buy often find gold rounds a fantastic avenue. Many of today's mints that produce gold bars also create limited-edition gold medals that appeal to collectors. Design themes range from classic movie franchises and comic book heroes to presidents and popes.

Bottom Line: Gold rounds are similar to bars and offer a variety of sizes and designs. Gold coins. What makes a gold coin different from a gold round? The legal tender status of gold coins means that its weight and purity are backed by the issuing government. Gold has maintained intrinsic value because, unlike in the case of currencies, there is a limited supply of it that cannot be artificially increased.

The allure of gold has made it a desirable alternative for those seeking diversification and the spreading of their risk. There are many ways to buy gold, both for decoration and as an investment. To many, it's also a hedge against economic upheaval, war, inflation, and global uncertainty.

Before buying gold, it's important to understand some of the factors that make gold unique:. Uncirculated gold coins are currently being minted by several countries. While they are all legal tender , they have a meltdown value that far exceeds their face value. Many numismatic collectible coins have market values that are even higher. Collectors are attracted by the potential for rising values, based on the rarity and demand of the coins they buy. Newly minted coins are easy to buy, and their purity is guaranteed by the government mints that produce them.

Mint 24K Gold Buffalo. Some of these coins are available in multiple sizes to accommodate both large and small investors. Liberty coins minted prior to were the only coins produced at all seven of the U. The minting of these coins ceased that year; in response to gold hoarding during the Great Depression , President Franklin Roosevelt signed an executive order calling in gold held by Americans, exempting only coins of recognized numismatic value. Many American investors prefer old coins because they fear another government confiscation of gold and assume that collectible coins may again be exempt.

While many people think of bullion as the large bars held in Fort Knox, bullion actually refers to the stamped weight and fineness of gold.

It can be in bar form, round like a coin, or of any other shape representing a tradable and practical size and form. The price of bullion typically includes the cost of the metal, plus the costs related to refining and shipping, as well as the dealer's premium. The bars are available in various weights, starting at 1 gram.

Heavy bars are best suited for large investors because they can be efficiently stored in an insured facility that specializes in precious metals. You also save on the add-on costs when you buy the heavier bars.

The disadvantage is that the large bars are more difficult and costly to sell, and may be difficult to use as part of a barter. The primary advantages of stocks and ETFs are that you don't have to store the metal, and there is potential for earning dividends. Besides individual mining stocks , there are also mutual funds available that invest partially, or exclusively, in mining companies. These can provide diversification into other precious metals, such as platinum , palladium , and silver.

You can also purchase options on gold futures contracts at an established strike price. ETFs hold bullion on your behalf. Gold stocks don't necessarily move in concert with bullion prices, because mining companies succeed or fail based on their individual operating performance. You don't have the security of physical possession of the metal if the companies you buy are unsuccessful. Jewelry allows the investor in gold to also experience the enjoyment of wearing it. Gold is often combined with other precious gems and metals to enhance the overall value and appearance of the jewelry.

Pieces are often passed down to the next generation as family heirlooms, adding sentimental value beyond that of the piece itself. Jewelry is not the best option if it's strictly an investment, because the price will usually far exceed the meltdown value.

This is due to the workmanship involved and the retail markup. Always determine the purity of the gold before buying jewelry, so that you don't pay for 18 karats when you are only getting a karat piece. Jewelry is covered by most homeowner insurance policies, which is an advantage in the event that your jewelry is lost or stolen, though you might consider buying a jewelry floater to supplement your coverage.