Different ways to invest in physical precious metals like gold

Different ways to invest in physical precious metals like gold

If you want to invest in gold, there are several options. There are basically three main types of physical precious metal: bars, coins and medals.

Gold coins

Gold coins are the best known form of precious metal products. Coins made of gold and silver were already produced in ancient times. Until the early 20th century, such gold coins were still issued by governments as circulating money. Even today, state mints produce such silver and gold coins. However, these coins are not used as money, but are minted specifically for gold investors or gold collectors.

Typically, such gold collector and bullion coins bear a motif that refers to a national symbol of the issuing country. Examples include the South African gold Krugerrand (the front of the Krugerrand gold coin features the world-famous portrait of Paul Kruger, after whom the series of Krugerrand coins was named. It was through Paul Kruger, then President of South Africa (1883 to 1902), that the mint from which the South African Mint sprang was founded. On the edge of the coin the country of issue was stamped in English and Afrikaans.) and the Cuba Pesos (on the obverse: Cuban coat of arms, above the country’s name as a curved legend, below the denomination, on the side 2 five-pointed stars, on the top half a rope pattern near the edge, below a native pattern).

You can read more about the differences between the normal bullion coins and the higher-priced collector coins here: https://rarecoinv4.wpengine.com/en/blog/differences-between-collector-coins-and-bullet-coins/

About numismatists and coin collectors: https://rarecoinv4.wpengine.com/en/blog/what-is-a-numismatist/

Gold bars

Bars of precious metal are also called ingots. They are the most space-saving way to store precious metals. Unlike coins, they are not legal tender. Instead, they usually come from private mints.

Thanks to their general appearance, bars are also usually the cheapest way to buy gold, silver, platinum or palladium. For exactly the two reasons mentioned above, bars are the preferred method for many gold investors to store very large quantities of precious metal at the best price.

Maybe also interesting for you: https://rarecoinv4.wpengine.com/blog/important-rules-for-the-purchase-of-gold-coins-and-gold-bars/

Gold medals

Gold medals represent an interesting middle ground between gold coins and gold bars. They are shaped like coins, but do not have the status of being legal tender.

Some gold medals date from the 1970s, but most were made more recently.

An example of a gold medal from our shop: 1957 Constitution Centennial Centenario 1.2 oz Gold – https://rarecoinv4.wpengine.com/edelmetall-muenzen-kaufen/1957-gold-50-pesos-constitution-centennial-centenario-mexiko/

What is the difference between medals and coins more precisely, you may be asking yourself right now? More about this here: https://rarecoinv4.wpengine.com/blog/what-is-the-difference-between-medals-and-coins/

“Paper” forms of precious metals

In addition to physical metals, there are also ways to invest in precious metals “in paper form.” In other words, you can own an investment product that is tied to the metals but not in physical form. “Paper gold” comes in various forms: Gold ETFs, gold mining stocks, gold futures, gold investment funds.

Gold ETFs

ETFs (in English “Exchange Traded Funds“) stands for exchange-traded funds. These are financial products backed by gold, silver or platinum. The funds issue shares that are traded similarly to stocks. In most cases, ETFs are passively managed index funds. The shares cannot be redeemed for physical metal. Instead, they are settled in cash at the time of sale. ETFs also charge annual fees for holding their shares. If you trade gold through a financial advisor, they may choose gold ETFs for that reason, among others.

Gold exchange traded funds (ETFs) are a good investment option if you find buying physical gold impractical, for whatever reason, or want to diversify your portfolio. Gold is considered a safe investment and this means that its prices are usually not very volatile.

Gold Mining Stocks

Often referred to simply as “gold stocks” and “silver stocks,” these are shares in companies that mine precious metals. Owning shares in gold mining companies is an indirect way to invest in gold. The value of their shares generally increases when metal prices rise.

Most mining companies are traded on the stock exchange as common shares. Although they can be a good investment, stock prices tend to be more volatile than gold prices. This can be influenced by various factors, such as economic growth.

Owning physical gold is expensive and complicated for some investors. Therefore, buying gold stocks is a good way for private investors to add to their portfolio.

Gold Futures

Futures contracts are a commitment to purchase a large quantity of an asset or commodity at a future date. These contracts are traded on financial exchanges, similar to the stock market. In our case here, gold futures of interest are mainly used by large institutions such as banks, jewelers and gold traders, etc. to hedge their positions.

In other words, buying or selling futures protects these institutions from prices falling too quickly if they are sellers, or prices rising if they are buyers.

Some of the activity in the futures markets is also due to speculators trying to predict which direction prices will move in the near future.

When you trade gold on the spot markets, the price you see indicates the current market value of the asset. Unlike futures contracts, spot gold markets are decentralized and traded around the clock. Futures trading, on the other hand, is bound to certain opening hours.

Gold Investment Fund

A so-called gold fund is an investment fund that invests in one of these forms of gold: mines, futures, ETFs. Some investors prefer mutual funds as a straightforward way to get their investment portfolio involved in the gold market.

The various paper forms of precious metals described above contrast with the purchase of physical gold bars or gold coins.

Maybe also interesting for you: Gold coins: Valuable rarities and collectibles – https://rarecoinv4.wpengine.com/goldmuenzen/ or

Buy gold – that’s why precious metals are the right investment in the crisis – https://rarecoinv4.wpengine.com/gold-kaufen/

Physical gold is considered a crisis currency, a safe investment in economically and politically uncertain times. Gold has always been a kind of emergency currency and it has never completely lost its value until now. Gold coins or gold bars have another unbeatable advantage: the investment is relatively easy to understand. Unlike financial products such as shares, certificates, etc., physical gold is – in the truest sense of the word – tangible! Especially if you are otherwise not very familiar and concerned with investment options, you may do better or even best with gold coins.

Do you have any questions? We are happy to assist you by phone and look forward to hearing from you.

A small selection of coins that you can find in our online store:

Krugerrand 2006 Launch Set Gold Silver
Krugerrand 2021 Proof 1oz
Krugerrand 1998 Prestige Set Proof
Krugerrand 2008 Proof 1oz
Krugerrand 1993 1oz Proof
Krugerrand 2oz 2021 Silver
Krugerrand 2013 1oz Proof Gold Coin
Krugerrand 1998 1oz Proof NGC PF68 UCAM
Krugerrand 1991 1oz Proof
Krugerrand 1997 1oz Proof
Krugerrand 1998 1oz Proof
Krugerrand 1999 1oz Proof
Krugerrand 1998 Proof 1oz
Krugerrand 1997 1oz PCGS PR69 DCAM
Krugerrand 1990 PF69 DCAM
Natura Leopard 1998 1oz gold
Natura Elephant 1996 1oz Gold
British Monarchs King James 2022 NGC PF70 UCAM
British Monarchs King Henry 2022 NGC PF70 UCAM
Cuba 100 Pesos 1990 Juan de la Cosa NGC PF68 UCAM
Cuba 100 Pesos 1991 Pinzon Brothers NGC PF69 UCAM
Cuba 100 Pesos 1991 Diego Velazquez NGC PF68 UCAM
Cuba 100 Pesos 1992 Bartolome de las Casas NGC PF68 UCAM
Cuba 100 Pesos 1992 Spanish Monarchs NGC PF68 UCAM
Cuba 100 Pesos 1993 Founding of Cuba 478 years
Krugerrand Proof Set 2005
Krugerrand GRC Prestige Set 1990
Krugerrand Prestige Set 2015
Krugerrand 1oz 2002 Gold Proof
Nature 1998 Leopard Londolozi 1998
Panama: Golden Turtle 100 Balboas 1979 PR69 Ultra Cameo NGC
1975 Olive Blossom Barbados PF68 UCAM NGC
Mongolia 1976 Wild Horses Gold NGC MS67
Canada 2 Dollar 1996 Gold Silver Bi-Metal
Tonga - Queen Salote Tupou III - 1/2 Koula - 1962 - PCGS MS67
Kiribati - Independence - 150 Dollar Proof - 1979 - NGC PF68 Ultra Cameo
Ethiopia - Haile Selassie - 20 Birr - 1966 - NGC PF69 Ultra Cameo
Congo – 50 francs – 1965 – 5 years of independence – NGC PF66
Latvia 1988 exile 70 years independence ngc pf68 ultra cameo
Botswana 1966 10 thebe gold ngc ms67
Natura 2000 Sable Antelope SA Mint
Natura Kudu Antelope 1999 SA Mint
Lesotho 1966 Independence Commemorative Set
Nepal - Birendra Bir Bikram - 10 Asarphi - International Year of the Child - NGC PF69 Ultra Cameo
100 Francs Niger 1960 Independence PCGS PR66CAM
NEPAL - BIRENDRA BIR BIKRAM - 1000 RUPEE - NIGARIAN RHINO - NGC PF67 UCAM
IVORY COAST - 25 FRANCS GOLD PROOF - 1966 - FELIX HOUPHOUET-BOIGNY - NGC PF67 CAMEO
UGANDA – 100 SHILLINGS – 1969 – APOSTOLIC VISIT POPE PAUL VI. IN UGANDA – NGC PF67 ULTRA CAMEO
Big Five Lion 2019 Gold
Big Five 2020 Rhino NGC PF69 UCAM
Big Five 2021 Buffalo NGC PF70 UCAM
100 Francs Niger 1968 NGC PF64 Ultra Cameo
Brazil 1960 builder Brasilia Oliveira NGC PF67
Natura Big Five Buffalo 1997
Protea 1986 Johannesburg South Africa 1oz Proof Gold
1985 parliament 1oz proof gold commemorative series
Krugerrand 2014 20 years of democracy NGC pf70 ucam
Guardhouse NGC PCGS wooden box mahogany
Guardhouse NGC PCGS wooden box mahogany glossy
Krugerrand 2000 proof gold 1oz COA
Krugerrand 2010 proof gold 1oz COA
Krugerrand 2011 proof gold 1oz COA
South Africa 1977 25 years commemorative proof gold coins PCGS PR 69 DCAM
South Africa 1977 25 years commemorative proof gold coins PCGS PR 69 DCAM
South Africa 1977 125 years sinking of the Birkenhead NGC MS 62
Zaire 1975 100 Zaires wwf leopard gold PCGS MS68
Bhutan Sertum Jigme Dorji 40 Anniversary of Accession to the Throne Proof Set NGC
South Africa Krugerrand 1990 GRC Proof Gold Set
South Africa Krugerrand 2001 Mintmark coinworld
South Africa Krugerrand 2002 Mintmark Basel
South Africa Krugerrand 2005 Mintmark Star of Africa
South Africa Krugerrand 2006 Mintmark Berlin
South Africa Krugerrand 2010 Mintmark Berlin
South Africa Krugerrand 2011 Mintmark 50 years decimal coin series
South Africa Krugerrand 2006-2010 double strike Mintmark Berlin Baer
South Africa Protea 2014 Nelson Mandela 20 years democracy NGC PF70 UCAM
Tonga Hau Taufa Ahau Tupou IV WWF
Malawi 1978 250 Kwacha Nyala NGC MS67
Malawi 1978 250 Kwacha Nyala NGC MS67
Falkland island 1979 Falkland fur seal NGC MS67
Falkland island 1979 Falkland fur seal NGC MS69
Colombia 1978 15000 pesos Ocelot NGC MS67
Uruguay 1930 5 Pesos Constitution Centennial
South Africa Krugerrand 2003 Mintmark Cullinan Diamond NGC PF69 UCAM
Chad independence anniversary 1960 10000 francs PCGS PR66 DCAM
50 rbl 1988 St Sophia PCGS PR69 DCAM
50 rbl 1997 850 years of Moscow PCGS PR67 DCAM
Ukraine 200 hry 1996 Shevchenko PCGS PR70 DCAM
Ukraine 200 hry 1996 Lavra PCGS PR70 DCAM