Gold has long been used to gauge wealth and prosperity and, in generations past, was the true measure of success. Fortunes were made and lost with gold, and the precious metal nearly single-handledly populated the western half of the United States in the late 1800s. Today, gold is still a valuable commodity, though not many people actually look at buying gold as their first choice toward investing for the future. Collecting gold coins for investment is popular around the world, and many people are very successful at it. Learning about the ups and downs of gold coin investing will help you decide whether it's right for you.
Con: Knowledge
You have to know about gold coins and their history, rarity, purity and origin in order to make an educated decision about purchasing a gold coin. Some beginning gold coin investors don't take the time to research and study, leaving them open to losing money on such investments.
Con: Expense
Gold coins can be very expensive. Rare gold coins, such as the United States Double Eagle or Liberty Head, are valued at (according to their mintage) anywhere between $850 and $60,000, according to the "Official Red Book Guide to United States Coins, 2008 Edition."
Con: Deceit
Like it or not, there are unethical collectors and dealers out there, and unless you really know your stuff, a collector or buyer can be taken to the cleaners purchasing a gold coin with less gold percentage or content than is claimed.
Pro: Legal Tender
Gold coins are considered legal tender and can be sold, bought or exchanged for fair face value of the coin in question.
Pro: Value
According to the "Wall Street Journal," gold is a good hedge against inflation or falling value of currencies. Some purchase of gold can help investors balance stock portfolios, either in gold coins, bullion or investment in gold mining.
Pro: Stability
Gold has been and continues to be relatively stable, despite the ups and downs of global economies. While it may fall a bit here or there, the price of gold offers global gold coin investors a relatively constant investment in outlay and return that is hard to ignore.
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