Should You Buy Gold as an Investment?


Should you buy gold as an investment? This is a perennial question, but especially relevant when the economy looks less stable and times begin to look more…interesting. At Grand Rapids Coins we advise our clients to invest in gold and other precious metals as part of their investment portfolio. Why do people choose to invest in gold? Below we list some very good reasons. 

The Value of Money

Does money have intrinsic value? This is a cornerstone question of economics. Money is an instrument of exchange, in its essence. We expend our knowledge and energy, our life force, in pursuit of our goals. Because most people don’t have the skills, the time, or the desire to make everything they need, they take the money they earn and spend some or all of it on things they want or need. What’s left they need to store. This is why we have money. 

Gold as a commodity has been used as a store of value and a medium of exchange for thousands of years. People the world over accept it as a form of currency because gold is:

  • Scarce
  • Durable
  • Universally viewed as valuable

The demand for gold by investors and governments affects its price and solidifies its status as a valuable asset. 

Investors are interested in gold for a number of reasons. First, many see it as a hedge against inflation. As the value of paper currency decreases, gold typically holds its value and may actually increase in value. This is historically how it has performed. Its price is not tied closely to other assets like stocks and bonds (or crypto currencies). 

Gold is often viewed as a safe haven asset during times of political or economic instability. It has remained valuable over time and more stable in price than many currencies. There is a growing demand for gold worldwide. 

If you have not yet bought gold as an investment, there are coins available that are designed for this purpose. In 1967 the South African Krugerrand was created to allow working people to be able to buy gold and preserve their savings in this way. It’s considered to be the first gold bullion coin. Seeing the success of the Krugerrand, other countries did the same, minting their own gold bullion coins, including the Canadian Maple Leaf, the American Gold Eagle, and the Gold Britannia. 

Gold bullion coins are portable, convenient, and affordable as investment options. Gold bars are another possibility for people who would like to invest more. One-ounce gold bars are also a popular choice. 

Should You Buy Gold as an Investment? 

It’s important to buy gold only through a reputable dealer. There are many unscrupulous people out there who happily take advantage of novice investors or coin collectors. If you hear an advertisement on television, ignore it and search out a coin dealer with good reviews instead. At Grand Rapids coins we will be happy to discuss coins and precious metals investments with you and take the time to make sure you find what you are looking for. We ship to customers nationwide, but locally you can visit our Rockford location if you would prefer to avoid shipping through the mail. Call us at 616-884-5048 to make an appointment to talk with us in person today. 

Ben Soldaat

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