Buy Krugerrand Gold Coins as Safe Investment

We live in uncertain times. The more prudent investors have recently been turning to one of the safer forms of investment - gold, and gold coins in particular. Gold prices hit $1000 on ounce earlier this year as investors plied their savings into stocks of the precious metal. According to the World Gold Council total investment in gold rose by 163% in the first quarter alone.

One of the most popular ways to invest in gold is to buy gold coins such as Krugerrands or Sovereigns. Items such as Krugerrand coins, which individually are 1oz of pure gold, are easily available from such diverse places as on-line auction site EBay.. Many industry commentators are openly suggesting that investors buy stocks of gold coins as safe, long term investments.

When comparing your options for buy gold coins there are several factors to consider depending on which coin you are buying. The main factor is to compare the percentage over the standard market gold price for each type of coin.

Gold Sovereigns

Experts believe that Sovereigns are often worth paying the slight extra premium for. Their small size and historic significance make them very attractive to most investors.. Sovereigns are better known that some other types of gold coins, Krugerrand coins for example, and have the added advantage of being exempt from Capital Gains Tax if you live in the UK. It is suggested that if you can buy sovereigns within 2% of the price of Krugerrands coins that this makes them a better long term buy.

Krugerrand Coins

Krugerrand coins are the best known of all the modern gold bullion coins. These one ounce solid gold coins are more easily available in greater quantities and can generally be bought at lower prices than any other. In comparison to sovereigns, Krugerrand coins do not look as nice, nor are they of such historical significance, but as a solid investment they are still extremely popular. What they lack in looks, however, they make up for in high production quality and they are a cost effective way for small investors to buy gold.


Tags: , ,
Posted in Krugerrand Gold Coin Articles | No Comments »