Author: Discoh
There is an easier, cheaper and safer way to buy gold than buying gold coins. But, if you strongly desire to own gold coins, there are numerous bullion gold coins available worldwide.
Bullion gold coins are an alternative way of storing wealth than to traditional currency. The bullion gold coins are an attraction as they retain the full value, despite the government changes or even when it is transported from places outside the country. These bullion gold coins are not numismatic gold coins.
The bullion coins are available freely and their value is computed in accordance with their gold content and the gold price. Numismatic coins are rare coins and are regarded as collectibles. Numismatic gold coins are more volatile in comparison to bullion gold coins mainly because their prices fluctuate when the value of bullion gold changes and also with the emotions of coin collectors.
Gold coins were produced between 1933 and 1965. Once the demand for owning gold is extinguished, the South Africans started minting it from 1967. But, now you can see most governments are minting gold coins. However, these gold coins are tough to acquire directly from the mint as the mints give them to distributing sales agents dealing with public.
The mints take a premium over the content of gold and the agents enhance it by adding intermediary margin. Nowhere in the universe are gold coins circulated as money. Even today, many gold bugs are struggling to comprehend the reason why gold is not a medium of exchange and the reason for not circulating it widely.
You can see that bad money loses value always and people consider it wise to spend such amounts and save good money.
Good money is referred to gold coins, and the gold coins are not inferior to bank notes. As they are not circulated, their storage value is considered as feature of good wealth. As the bank notes are fast depreciating, few people handle gold coins. Handling gold coins can be rightly done only when understands the skill to deal with it. The dealing cost increases as very few expert gold coin dealers know to handle it deftly and they benefit from their knowledge and you are paying for the lack of knowledge.
Now, dealing with gold coins is considered perfectly legal and the open trading of gold coins is commonly tax free. However, you have to pay more than the underlying gold price. Similarly, while selling, you have to agree for a discount. However, people value the gold coins and store at least a small reserve of bullion gold coins for emergency or extreme circumstances.
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