I have in the past commented on the subject of gold as an inflation hedge because the Federal Reserve will be hard-pressed to monetize the huge debt that is bound to augment future inflation.
But I told readers to look at gold prices over the years. The price today is really not much higher than that of the 1980’s. With simple compound interest, gold ought to be about twice what is today.
There are many ways to beat inflation. But if your decision to do that is to buy gold, and you decide on gold coins, which do you choose?
Gold comes in different forms; plain coins, rare coins, and bullion, all of which must be safely stored in bank vaults or at home. That can be dangerous because of potential theft, and thus require expensive insurance. Storage costs can mount.
Gold is a good holding in dire emergencies. Excellent in rare coin form. For example, refugees fleeing Europe in the 1930s used them. But their value can be erratic and gold pays no interest if just sitting around.
Furthermore, there is a big spread between the price one gets when selling coins and one pays when buying, what the trade calls bid and ask prices.
My suggestion: No matter what choice you make, select by coin condition, in addition to rarity. Condition, however, is sometimes very subjective, depending on whether you are the buyer or seller, but it is a rule of thumb to keep in mind.
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