Short-Term Hold: Bullion refers to precious metals in bulk form that are worth their weight in gold. Their price is tied directly to the commodity market.
Gold bullion coins have been an international standard for trade dating back centuries, and as recently as 1986 these coins have become a readily available domestic source of short-term personal finance protection in the United States for the average citizen.
There are many advantages to owning gold bullion, but bullion is just the starting point for the type of gold ownership that can prove lucrative enough to build lasting wealth. As a commodity strictly tied to the market’s daily price per ounce fluctuations, there are limitations that even gold bullion can’t overcome.
- Produced by the U.S. Mint in quantities to meet demand
- Tied to the spot gold price and commodity trade
- Available in the U.S. in 91.67% (22K) and 99.99% (24K) purity
- Owned optimally for short-term growth
- Can be included in a self-directed precious metals IRA
Long-Term Hold: Independent services grade coins for their condition, establishing a collectible marketplace based on rarity.
It’s easy to understand why precious metals are a store of wealth, but certified coins are a bit more complicated to grasp. The concept is called numismatics. It’s the study and collection of coins for their rarity.
Rarity of coins is determined through grading. The coins are then sonically sealed in plastic cases that preserve their condition going forward. This establishes how many coins exist in the world in a given condition. The fewer coins available in a grade, the more likely a coin with that grade will be sought after by the marketplace.
It’s a basic supply and demand model. People want coins that are hard to find and will pay more to get them. Rare coins can fetch millions of dollars at auction, while new coins are being introduced every day in limited production runs that all but ensure they could appreciate in profit potential over the long term on the open market.
- Independently graded on the Sheldon Scale for condition
- Condition preserved in sonically sealed plastic cases
- Established rarity based on existing coins in a given grade
- Numismatic value in addition to metal’s melt value
- Insulation from spot market volatility
- Marketplace demand for rare coins
- Not limited to modern legal tender bullion coins
- High profit potential