Many new collectors, as well as many investors entering the coin market, are convinced that all that glitters is indeed gold. They assume that being more valuable (at least in terms of face and intrinsic value), gold coins are inevitably more desirable as well.
Even with a markup of 5-6%, gold bullion coins will give you very good returns for the long term, especially since people are losing huge amounts of money in stocks and mutual funds. If I had a choice, I would chose gold bars over gold bullion coins at any time, but it depends on the individual.
I think I wasn't clear in my statement. I thought different individuals might think differently in which form of bullion they want to invest in. Some might think that bullion coins are the best, while some others might think that Bars will be better. There may be even more people who think investing an ETF is a far better option than investing in the real metal. So the choice depends on the individual. But to get the maximum profit out of it, we should definitely take in to account the market trends.
Finally I would more specific on trends since that the drive I have seen in the markert over the years. I know people so fancy at gold investing since last two years. Its the trend that more people jump into the same investing.
It's because the long term price of gold, based on the action of central bankers, is very optimistic and supportive.
As many people have said, it's because gold is gold! The longer they hold onto it, the more value it will have. (Unless there's a drop in the price of gold.) A lot of regular coinage after awhile flatlines to a steady rate. Gold however, always has the potential for increase. 8)
Well they hedge against inflation and even hyperinflation so that would attract many buyers for gold coins. Fiat currencies (Like the US dollar) will come and go but gold and silver always hold there value for over 5,000 years. And people will always pay a small premium for them. And coins are really easy to buy and sell as well as complete transactions in a barter.
