Gold investment grade coins have become an increasingly popular asset class for investors looking to diversity their portfolios. With economic uncertainty on the rise, many investors view gold coins as a hedge against inflation and market volatility. This article will explore the key characteristics of investment grade gold coins and why they can provide good long-term value for investors.
Investment grade gold coins command higher premiums due to strict grading standards
Investment grade coins, with grades like MS-70 or PF-70, adhere to strict quality standards in terms of strike, luster, surfaces and eye appeal. This quality commands substantial premiums over lower-graded or bullion gold coins. While expensive upfront, high grades preserve value over decades.
Scarcity drives up values of certified rare date gold coins
Besides condition rarity, gold coins with mintages of only a few thousand can also grow tremendously in value over time. Key date gold coins that are certified and graded are bought and sold for high markups by dealers and collectors.
Gold coins avoid counterparty and default risks of other assets
Unlike stocks or bonds, physical gold coins do not carry counterparty or default risk. Gold’s inherent value exists outside of the financial system, making coins ideal for portfolio diversification and disaster hedging.
With their potential to retain intrinsic value over the long run, investment-grade gold coins can provide good value for investors looking to diversify. Their scarcity and role as a hedge also allow substantial upside over time.