Gold equates to real money. Unlike other assets like the traditional stocks and bonds, even legal tender – which really just represents the value of money, gold can hold its own value even when economic recession occurs. This is the reason why sensible and practical investors pursue gold investment. “Buy gold coins and watch them grow.” people say as purchasing tangible gold often rewards good investors with promising returns.
Financially speaking, owning tangible gold is similar to owning a real estate only that, you don’t usually worry about the mortgages. Compared to the traditional stocks and bonds, the value of gold remains constantly high despite of the major setbacks in the economy and it is all about conserving the integrity of your savings from the liabilities brought about by economic crisis. Nothing does it better than investment. Buy gold coins and save them for a rainy day.
Now that you know the real impact of gold in the steady flow of income, you probably want to know how to make use of gold to build the foundation of your wealth. If you are someone who is retiring, you can invest using a gold IRA. With this IRA, you can invest in tangible gold like gold coins and bullions. Gold in IRA can definitely give you more security compared to other forms of investments most especially when you are faced with financial setbacks which are often related to piling medical bills, debts and expenses. When you can no longer work for yourself, the gold in IRA will serve as your life vest.
If you want to make a coin gold investment buy gold coins only after you have determined the gold’s purity and weight. This is the amount of actual gold contained in a single coin. Keep in mind that gold coins are also made using other metal alloys which is why there is no such thing as a pure gold coin. Metal alloys are generally mixed with gold to make the coins stronger. Gold coins for potential investments usually contain at least 22 karats of gold.
If you also want to diversify your coin gold investment buy gold coins from other countries as well. Some of the American eagle gold coin alternatives would be the Canadian maple leaf, the Chinese panda and the Austrian philharmonic coins. You also need to study the specifications for these coins to make them viable for investment.
You need to have the smarts if you want to pursue gold investment. Buy gold coins when they are at their cheapest and keep them until you can sell them at their highest price. Time is to your advantage since the value of coin increases yearly.
Compared to other investment options, gold does not fall under the capital gains rate. If someone owns physical gold like bars and coins or gold certificates which are backed by physical gold, The IRS will acknowledge this more of a collectible than a source of investment.
However, if someone purchases bullions and coins, it is likely that the person who bought it will sell them eventually. You must then consider what will happen if you sell your coins. If coins are sold for less than a year, the money you earn is counted as ordinary income and is taxed accordingly. But if you sell the gold after owning it for a year or so, the returns are taxed at a maximum of 28%.