Are gold investment coins the best option? Best in cryptocurrency

Are gold investment coins the best option? Best in cryptocurrency

The details listed here are not arranged in any particular order. Historically, they were among the most famous. Each copy remained in demand for decades.

American Eagle, 1 ounce, $50 ?

The American Eagle series, first released in 1986, was a hit with investors. The two main reasons are the high purity of the gold it contains and the relatively low prices compared to the spot price.

American eagles are available in four different sizes. However, the 1 oz. gold coin mentioned here offers the best value for money for investors.

The eagle contains one troy ounce of gold with a fineness of 0.9167 and has a face value of $50. Like all gold coins offered in this investment series, the specimen is official legal tender. Although, of course, it would be unwise to give away this precious gold coin for its face value.

This is at least one of the most widely used gold investment coins included in investment portfolios. Due to its exceptional popularity in the financial world, it is very liquid and therefore provides an excellent return on investment.

Has the demand for gold caused a shortage of coins in Russia?

Against the backdrop of the pandemic crisis and turmoil in the financial markets, Russians began to look for new investment instruments. Wealthier Russians are increasing their investments in publicly traded gold, in other words, in shares of specialized “gold” funds.

Those who are not well versed in monetary instruments or who do not have brokerage accounts are also actively transferring their savings to gold. Thus, in Promsvyazbank in spring and summer, the inflow of funds to depersonalized metal accounts (OMS) increased by 15%, and the demand for gold coins increased by 20%, reports Prime.

Russians’ interest in gold can be understood: six months ago, gold futures were on the stock exchange

Analysts interviewed by the Roux newspaper pointed out that in general it is always necessary to have savings in gold, so in a broader sense there are no ideal or bad times to buy precious metals. And it’s not just about gold.

Alexander Oskin, an analyst at the trading department of the Russian stock market Freedom Finance, points out that the demand for gold and gold assets will continue to grow in the coming years. The current growth in prices and demand for gold and gold assets seems to be a steady trend due to the soft or ultra-soft monetary policy of the world’s leading countries over the past 12 years.

“From the point of view of estimates based on the dynamics of indicators reflecting the dynamics of commodities and money supply, the target level of gold prices over the next one to two years is $ 2500 per ounce in the base scenario,” the analyst said . “Positive and negative scenarios for the gold market under this rating system for the next year with a 60% probability are US$ 1,700 and US$ 3,150 per ounce, respectively.””

Ru D’alari Gold newspaper’s interlocutor agreed with the expert’s opinion. The company representative noted that about 10-15% of savings should be stored in physical gold and, first of all, in gold coins.

“Coins have many advantages: there is no VAT as legal tender. Coins are more liquid than bullion. They can be sold to a wide range of individuals and legal entities. The loss of the certificate for the bullion threatens to lose the possibility of their sale.”

– explained the Alaric Gold representative.

Ru noted that, in fact, a kind of shortage has formed in the market of coins made of precious metals.

“In March 2021, Alaric Gold sold all gold and silver coins. According to the company’s representative, in the four years of the company’s operation in the Russian market, there has never been such an urgent demand. “Gold coins “George the Victorious” (Russia), “Philharmonic” (Austria), “Britannia” (Great Britain) weighing one troy ounce (31.1 grams) are in special demand.”

Are there cheaper options?

In an interview with the newspaper.Ru, a representative of Alaric Gold, said that gold, in his opinion, is quite expensive today, so silver coins are also a very interesting way to protect some of the funds from the negative trends in the economy.

The fact is that now gold versus silver in dollars is trading at 1-79; this is a pretty big gap and will narrow to 1-50.

“Money reserves around the world will last 30 years. This metal is waiting for a very serious price increase,” says the expert.

However, Alexander Osun of Freedom Finance pointed out some of the risks associated with physical gold. According to the expert,

the main advantage of the precious metal in the form of identical pieces is the ease of purchase. However, when selling, the buyer may require independent verification of the details. Of course, it is not free.

“In addition, the margin reflecting the artistic and numismatic value of coins is relatively high. The value of coins is about 10%, several tens of percent higher than the value of the precious metals from which they are made,” added Alexander Osun, explaining that the presence of artistic and numismatic value poses an additional risk to the investor.

Protection against inflation

In general, both experts agreed that gold coins represent a kind of protection against inflation.

“Gold and silver will grow in the long term. Any risks in the global economy will again lead to an increase in precious metal prices. Dollars, euros and rubles can still be printed, while gold and silver reserves are limited.”

Alexander Osin of Freedom Finance, however, noted that gold prices react with their dynamics not so much to inflation itself as to the factors determining the dynamics of consumer and producer prices in the economy.

“The real average annual increase in gold prices in US dollars since 1968 is 6%. But during these 52 years, there were quite long periods when the gold price grew more slowly than inflation, adjusting for certain technical or fundamental factors with the help of price dynamics,” says the expert.

So, in fact, the main advice for those who decide to transfer their gold funds is not to transfer all available funds there. A much more competent solution would be to create a “basket” of investments to protect against general economic risks.

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