By Rashmi Goel
When it comes to investing your cash and building wealth, there are plenty of options available to you. The purchase of gold is a popular investment tool to diversify a portfolio of assets, as opposed to holding only stocks and bonds in one's portfolio. It is popular to invest in physical assets such as real estate and precious metals as alternatives to financial assets. Investing in gold and silver coins can be a great way to get a good return on your investment in gold and silver. There are many reasons why physical gold and silver bullion can be a better investment than other gold investments that trade on the stock market due to their price stability. If you are a gold coin collector, then it could also be an enjoyable investment for you. Unlike paper money, this currency allows you to save against inflation and it can also be spent just as easily.
What Are The Advantages Of Purchasing Gold Coins?
The Inflation Hedge
Buying gold can be seen as a hedge against inflation and its ability to weaken the value of paper currencies as well as currency-based investments. There is no limit to the amount of money that can be printed by central banks, but there are a limited number of gold coins as well as other options, like the Canadian Gold Maple Leaf coin or the Chinese Gold Panda coin.
The Alternative To The Stock Market
Stock investing has been one of the most effective methods of building wealth for more than a century. When the stock market is experiencing a downturn, pure gold and other precious metal options may be a better investment choice. As a means of storing wealth, investors may sell paper stocks and purchase gold and other physical assets, such as real estate. Investing in gold bullion coins does not earn interest or dividends, so you will not be subject to taxes until you sell your coins. Investing in gold using a self-directed IRA can help you avoid paying this tax. Taxes are paid when the funds are withdrawn from the account in retirement.
Alternatives To Paper Currency
The use of gold coins can also be an alternative to the use of paper currency. Many nations have used gold as a currency for several thousand years, for instance. As far as paper currency is concerned, no paper currency in use today has been in circulation for the same length of time. Investors tend to flock to gold and silver as safe haven investments when the value of a currency decreases. It is also important to note that gold bullion is worth the value of its metal content. As well as being used for money, gold is also used for industrial purposes, including for the manufacture of jewelry and electronic devices. Paper currency is solely intended for the purpose of making payments for goods and services without exchanging physical items.
What Are The Disadvantages Of Purchasing Gold Coins?
Earns No Passive Income
There is no definite correlation between the value of popular gold coins and the price of gold or its collectible value. Dividends can be generated by stocks, bonds, and savings accounts. A recession and fluctuating gold spot price can make it difficult to sell gold coins for a profit.
Fees For Transactions
Whether you are buying or selling gold coins, you will have to pay a transaction fee. There is a premium charged by dealers when purchasing gold coins, in addition to the spot price for a gram or ounce of gold. When the demand for gold coins is high, the premiums on gold coins will be higher. It is important to keep in mind that these fees will increase your investment cost basis and reduce the potential return on your investment.
A Secure Storage Environment Is Essential
Considering how valuable gold is, it is important to find a secure storage vault in order to prevent any loss or theft from happening. A home vault is a great place to store your gold. Many investors would prefer to store their gold in the vault of a gold dealer who provides a secure environment. Keeping your gold off-site is not only expensive, but it also means that if you want to sell it quickly, you won't be able to get immediate access to it.
Income Tax On Capital Gains
It is important to note that when you sell your gold coin or other types of gold, any profit that you make on the sale is subject to capital gains tax. For the majority of investors, the long-term capital gains tax rate is either 15% or 20%, depending on their investment style. There is no difference in tax treatment between investors who own stock market investments for at least a year and those who do not.
Are Self-Directed Iras A Good Investment For Gold?
It is possible that you will be required to pay capital gains tax on your investment gains when you sell your gold. It may be beneficial for you to open a self-directed IRA in order to minimize your current tax bill for gold bullion products and other physical assets. The coins and bars you purchase must be IRA-eligible and not solely for their collectible value. It is possible to purchase a wide range of coins and gold bullion bars, including the American Eagle bullion coin. Investors commonly purchase these coins. Custodian fees are one reason to avoid a self-directed IRA. A self-directed IRA must first be opened with a custodian who offers this service. The fee will either be a flat annual fee or a percentage of the value of your portfolio. Furthermore, stocks cannot be held in a self-directed IRA. In order to avoid IRA custodial fees and purchase restrictions, it may be easier to avoid buying gold with retirement funds.
Gold can be obtained online only if you know where to go, and these sites are legit.
SD Bullion
Despite being relatively young, this pure gold dealer has a high rating. The company sells gold bars and coins, including bullion bars. It is possible to find rare coins, such as US coins from before 1933, at some of the offerings, which are eligible for IRAs. A wide variety of gold and silver bars are available from this dealer, as with other dealers. It is possible to produce bars as small as 1/100th of an ounce as well as those weighing up to one kilogram. As SD reduces its over-spot fees, you can find the best prices for gold and silver on Doc's Deals. To diversify your portfolio, you may also purchase silver coins and gold bullion coins. Collectors of gold coins may find this to be an attractive option. Storage options are also available through SD Bullion. A monthly storage account with SD Depository begins at $9.99 with vaults located in Ohio and Michigan. In the vault, your holdings are kept separate from those of other investors.
JM Bullion
Is Buying gold and other precious metals online is one of the most popular activities. It is possible for you to purchase gold and silver from U.S. and foreign mints through this site when it comes to gold bullion coin mints. Gold bullion bars are also available if you are not interested in collecting or investing in gold coins. A discount is also available on the sales page for most gold bullion coins and silver coins. To reduce your potential tax burden, a number of products are IRA-eligible. Self-directed IRAs must be used to purchase gold and silver. In contrast to a traditional or Roth IRA that you open with a stock broker, this retirement account holds physical assets rather than stock shares. Depending on the payment method you choose, you can see the per-item cost for each item.
APMEX
It is also a good idea to purchase gold coins from APMEX. Well-known world mints offer newly minted gold coins and rare coins for sale. Gold bullion issued by APMEX is .9999 purity. Saving money on gold bullion coins and other coins can be achieved by browsing the "Deals" section. Select products are also eligible for volume discounts. The following methods of payment are available: linked bank account, crypto, credit card, and PayPal. Payments for orders less than $25,000 must be made within five business days. The purchase price of orders exceeding $25,000 must be paid within three days in order to be secured. Apart from shipping, APMEX does not charge any additional fees. Gold and silver can also be sold to APMEX and the buyback price can be found on the company's website.
Vaulted
Bullion and coins made of gold can be expensive to purchase. Investing a few dollars at a time makes it easy to own gold with Vaulted. The Royal Canadian Mint stores fractional shares of gold bullion bars purchased from Vaulted. Using a linked checking account, you can purchase $20 per month. The gold bar will be FedExed to you once your account balance reaches the price for one ounce of gold. There is no conflict associated with each bar, and it has .9999 fine gold purity. The highest purity rating for gold is .9999. As Vaulted only offers gold bullion bars, one of the other options may be more suitable if you wish to purchase gold coins. When you purchase or sell gold through Vaulted, you are charged a transaction fee of 1.8%. You are also charged a 0.4% annual maintenance fee. It is competitive with gold bullion ETFs, but Vaulted allows you to convert your digital balance into gold bars.
United States Mint
Your best option can be to buy your gold coins directly from the mint. In this case, it’s the U.S. Mint that also produces the currency and coins sitting in your change jar at home. If you decide to buy directly from the U.S. Mint, you will most likely buy the American Eagle proof coin as the U.S. Mint cannot sell the bullion series of collectible coins. Investors favor gold bullion coins as they tend to sell at a lower premium than proof coins. Both coin types have the same purity level. You must buy gold bullion coins that the U.S. Mint strikes from a gold dealer.
Kitco
Gold coins and bars are available for purchase online or by telephone through Kitco. It is worth noting, however, that their minimum order is $2000, which is a lot higher than most pure gold dealers. World's largest mints, including those in the United States, Canada, Australia, and Austria, sell gold coins. Browse weekly deals to save money. There is also a digital gold purchasing option offered by Kitco that can be converted into physical gold. Gold bullion coins or other products can be purchased in fractional amounts until you are ready to accept delivery in person. Gold can increase your total investment cost when prices rise, but it is an easy way to invest small amounts of money in gold. As well as an impressive dashboard of expensive metals news, this online dealer offers a wide range of products.As an investor in alternative assets, you can use this dashboard to monitor pure gold and other precious metal products, such as the Canadian Gold Maple Leaf coin, the American Gold Eagle coin, and the Chinese Gold Panda coin.
Patriot Gold Group
There are a variety of gold coins available from Patriot Gold Group, including coins from the U.S. Mint and other world mints. Patriot Gold Group offers free shipping and can store your bullion in their vault as well. The bullion, proof, and IRA-eligible gold coins can be browsed online, but you will need to contact an advisor for a price quote. A self-directed individual retirement account (IRA) can be opened through this online dealer. A free gold coin can be obtained by transferring or rolling over an existing IRA.
GoldSilver
There is a wide selection of gold bars, coins, and jewelry available at GoldSilver. The deals section offers gold at a discounted price and is IRA-eligible bullion. Using a wire transfer, check, or Bitcoin as a method of payment will allow you to receive a discount of up to 4%. Payments made by credit card or PayPal will not qualify for a discount since payment processing fees are charged. Dealers in gold online are accustomed to this practice. Monthly storage fees begin at 0.06% of the asset value ($4 minimum). In order to become a member of the Insiders loyalty program, you must purchase at least 500 ounces of silver or 10 ounces of gold. The "Insider" program entitles you to exclusive discounts and provides access to in-depth research on investments. Its price match guarantee is another reason to consider GoldSilver. GoldSilver will match the price of another legit competitor for orders up to $5,000 if they have a lower price.
Money Metals Exchange
Money Metals Exchange offers the option of purchasing gold coins or bars that are shipped directly to the buyer. Coins from the Bullion and Proof series as well as pre-1933 coins are available. You can reduce your premium costs by enrolling in a monthly savings plan of at least $100. Each minute, the price of a coin, whether it be a gold maple leaf or another type, is updated. Rather than making a decision to purchase a gold coin right away, you can set up price alerts to help you find a better deal. There are a variety of payment options available to you, such as wire transfer, check, money order, and credit card. There are several dealers who accept Bitcoin payments, as well as other alt-coins such as LiteCoin, Dash, and Ripple. The company also offers a storage-only product known as "Vault Gold" which is a tenth ounce of gold bars. As long as you do not sell your gold, these bars remain in the Massachusetts vault. The cost of storage begins at $96 per year (a fee of 0.96% per year). If you purchase more bars, your annual fee decreases as your value stored increases.
David Hall Rare Coins
Among the most respected rare coin dealers is David Hall Rare Coins. David Hall Rare Coins is popular among investors due to its personalized service. Comparing rare coins that cost more than gold bullion coins can be easier with the help of an agent. Gold and silver bullion coins can also be purchased. Ordering coins online is possible, but securing the purchase price is likely to require a phone call.
BGASC (Buy Gold And Silver Coins)
Gold bullion coins are the primary focus of BGASC, but the company offers a full range of gold products. BGASC is our choice for the best online gold dealer for coins based on the wide range of coins available, the highly competitive prices, and the excellent customer service. As a gold coin dealer, BGASC has established a strong reputation. Along with the essential standbys such as American Eagles, Canadian Gold Maples, South African Krugerrands, Pre-1933 U.S. Gold, and Australian Gold Kangaroos, they maintain an extensive inventory of premium and rare numismatic items. Besides silver and platinum, it also offers products made from these metals. All standard sizes of gold bars are available from them.
Golden Eagle Coins
As one of the most reputable online gold dealers, Golden Eagle Coins is known for its large selection of gold coins, including collectibles and numismatics. The company was founded in 1974 and has a track record of customer satisfaction that is unmatched. With Golden Eagle Coins' extensive selection, you cannot help but be impressed. There is a wide selection of pre-1933 coins, commemoratives, mint sets, and foreign coins from many countries available to investors in addition to the popular coins such as American Eagles, South African Krugerrands, and Canadian Maple Leafs. Silver, platinum, palladium, and copper coins are also available from Golden Eagle Coins. It is also unlikely that you will find too many dealers who offer historical currency, such as Confederate notes and Colonial money. There is also a large collection of ancient Arabic, Greek, Roman, and medieval coins that are attractive to collectors. There is no doubt that Golden Eagle Coins' pricing is competitive and low, but it is not as cheap as BGASC or SD Bullion. The selection and service at Golden Eagle Coins are of greater importance to you than its price.
Summary
As mentioned previously, the online gold dealers discussed above are reliable, trustworthy, transparent, and fair. In spite of this, there is sufficient differentiation between these top dealers to make them attractive to investors based on different factors. The widest selection of products is what you are seeking. It is recommended that you begin your search at APMEX. JM Bullion offers an exceptional overall customer experience, however. In terms of pricing, SD Bullion is one of the best gold dealers. Investors often diversify their gold holdings by purchasing from a variety of sources. Nevertheless, Money Metals Exchange is the best choice if you are looking for a one-stop shop for your gold needs.