When considering buying gold, there are many forms of gold to look into. Beyond jewelry, there is bullion verse numismatic and bars verse coins. All come in many different forms, in many different sizes and all will hold different values as well as different selling potential.
Bullion simply means gold that has a fixed value based on gold content alone. For instance purchasing a 10 ounce bullion bar, with .995 fine purity is sold for a certain fixed value that only increases through supply and demand. Numismatic is for gold that is a collectible, typically coins.
Gold prices per ounce waiver through these factors. Numismatic coins typically will increase through the years because the coin is a collectible, bearing not only the year it was made, but usually stamped with a symbol, icon or representation of where that coin originated. Only through time will numismatic coins exceed their face value.
A bullion coin is sold for what is priced at based on gold purity. As more people want to buy gold, the price will increase, but it is through selective buying and selling tactics where financial gain is to be met. Simply investing in gold does not guarantee profit, but gold is one of the best assets in which holds profit potential so it’s a great start. In this economy it is much more investment worthy verse buying stocks.
As far as investing in bulk vs small amounts of gold, excluding financial capabilities, buying gold in small doses has been said to be safer and/or smarter for a few reasons. Fake gold is easier to go unnoticed through gold bars verse small coins. Coins just in their very nature are much smaller in scale and harder to be tampered. Gold bars can be drilled out and filled with brass.
Also, in 2012, the IRS will be requiring any sold goods and services that exceed $600 to require a 1099 form. In that respect, selling gold in bulk after 2012 will automatically require IRS paperwork. This new requirement will also force investors to claim their gold which not everyone may want to do.
Gold in small doses also does not need insurance. Insurance fraud is common amongst bulk gold investment with many bars being claimed as “stolen”. As a result, premiums are high when ensuring bulk gold. This is not to say stay away from buying large amounts of gold, but to keep in mind the main reason gold is such a hot investment is again, financial security. If an investor pays more to buy gold than what he/she can get when the time may come to sell, it defeats the purchase of investing in gold in the first place. Weigh the options carefully when it comes to how much gold to purchase.