Which type of gold should you invest in?

With the economy going through such a difficult time, there is only one investment that is able to protect your investment portfolio and that is gold. The question lies, which type of gold is the best investment? Should you invest in gold coins or gold bullion? Gold is a great investment as you can tap into it quickly when you run into trouble. It is the one form of currency that is accepted in every country, making it valuable to investors.

Gold bullion is a smarter investment than gold coins because almost everyone has some type of gold coin collection that they will try to sell when the market goes sour as they need money quickly. Selling the coins at a huge loss can often happen to people when their investments turn sour and they are left with no other option.

What value do gold coins have?
As previously stated, gold bullion provides more value than gold coins. The trouble with gold coins is that you need to find a buyer that wants them, which is rare as most people are coin collectors and not all of them have extra money to pay for the coins. The ones that do have the money tend to be tough negotiators and they will quickly talk you down, especially if they know you are in a bind to get some quick cash.

Gold coins have a different rate calculation than gold bullion. You need to pay for the metal and the dealers premium plus the cost of the numismatic premium which is based on the value of the coin. Some gold coins depreciate in value and you are going to be unable to make back your money if you wait too long to find a buyer. Once you purchase gold coins, you are often faced with a high premium from the dealer. The premiums can range upwards of 15%, causing your investment to lose too much money in the beginning and it is often hard to recover. Unless you want to become a collector, stay way from gold coins as an investment purpose.

What values does gold bullion have?
The great thing about investing in gold bullion is that everyone wants gold bullion in every country. No matter how bad your situation may be, you will always be able to find someone that wants to invest in gold bullion so you can always make back your money if you suddenly need it. The gold bullion market is a worldwide market so it is tradeable anywhere.

Unlike gold coins, gold bullion generally has price increases. For most investors, the price of gold bullion will raise by 5-10% from the original purchase.

So why invest in gold?
Unlike the stock market, you don't have to watch your investment in gold quite as closely. Gold bullion is going to give you a nice return so you can feel safe that you can invest a large amount of money into it. The stock market is vulnerable and ever-changing, which tends to worry a number of conservative investors. Even if you do enjoy predicting the stock market and looking for the next big thing to invest in, your investment portfolio needs to have some type of back-up plan. Gold along with bonds always need to be added a good investment portfolio as they are similar to insurance. They will give you something to fall back on when the stock market turns sour and you end up losing a great deal of money. At least with your investment in gold, you can sell it if you need money now or you can continue holding onto it while you wait for the stock market to rebound.