Go ahead and go online for a gold quote, and you will see that you are getting the current market price for the metal. This, however, is not an accurate gold quote in terms of the individual assets. What does that mean? Well, you can get a gold quote for a bar of bullion or you might get a gold quote for a roll of American Buffalo coins, and though you might ask for the same weight, you would not get the same gold quote in terms of pricing per ounce.
Why is that? It is due to a few factors. Firstly, there are different grades of gold, and though they may seem miniscule at best, they are measurable and significant. For instance, we mentioned the American Buffalo coins. They are one of the finest grades of gold on the market and measure at .9999 fineness. That means that they are 24-karat gold. They are also incredibly portable and highly “liquid.” This is why you get a much higher quote for this asset than any other.
Why does it cost more for the ease and liquidity? Just think about it…the investor who purchases a brick of gold will have to hold that asset until they want to sell and then would be required to liquidate the entire holding. If, on the other hand, they decided to purchase the coins they would have the convenience of being able to hold on to whatever percentage they desired and sell whatever amount they felt necessary.
The coins, as mentioned, are also among the finest in terms of quality of gold and they will come with the built in benefit of extrinsic value. This is the value that is assigned to them by the treasury (meaning the $50 face value) and which is honored regardless of the price of gold.
So, no matter what the market price for gold, a coin is always going to have value. This may not seem significant but it does have to be factored into the price. Just consider that there are no other investment vehicles with the kind of insurance against total loss as gold or silver coins.
As you make investment plans in the coming year, be sure to leave room for gold and particularly with a consideration towards gold coins. They are a “sure thing” in terms of holding their value, but they are also going to continue to be one of the best investments in general.