A good investment.... are 1-ounce of gold coins?

For centuries, gold has been a prized investment due to its finite supply and substantial demand, making it one of the most traded assets globally. Beyond its traditional role, gold offers unique benefits to investors, prompting consideration for inclusion in diverse portfolios.

When exploring gold investment options, one will encounter various avenues, including gold bars, coins, and even novelty items. Among these choices, many investors find merit in gold coins, particularly the 1-ounce gold coin. But is investing in 1-ounce gold coins a sound decision?

Discover more about your gold investment options today.

Are 1-ounce gold coins a wise investment? Investing in gold can be advantageous, and 1-ounce gold coins, in particular, offer several reasons to consider them:

1. Low cost of entry:

   • While you have the option of purchasing multi-ounce gold bars, the current prices may make them prohibitively expensive, reaching tens of thousands of dollars. In contrast, a 1-ounce gold coin can be acquired for approximately $2,100, a cost comparable to a 1-ounce gold bar. This lower entry point makes gold coins more accessible to a broader audience than larger bars.

2. Potential tax benefits:

   • Incorporating gold coins into a self-directed gold individual retirement account (IRA) can offer tax advantages. Adding gold to a traditional self-directed IRA allows for a pre-tax investment, while inclusion in a Roth IRA provides tax-free growth on gold investments. Additionally, some states extend sales tax exemptions on qualifying gold coin purchases.

   • For instance, in Michigan, investment coins are exempt from state sales taxes, covering those made of gold, silver, platinum, palladium, or other metals issued by the United States or foreign governments with a fair market value exceeding the face value. State tax regulations vary, so it's advisable to check your local laws for potential tax benefits associated with gold coin purchases.

3. Potential for collectability:

   • Beyond being a gold investment, purchasing gold coins may also involve acquiring a collectible asset. Some 1-ounce gold coins feature captivating designs of animals, political figures, and nature. Mints produce a limited number of the most collectible designs, with the rarest coins commanding the highest collectability value.

Other reasons to invest in 1-ounce gold coins include:

• Inflation hedge:

  • Gold is often sought as an investment during periods of high inflation, serving as a stable, safe-haven asset amidst rising consumer prices.

• Safe-haven investment:

  • A gold coin can act as a reassuring investment during uncertain economic times, helping stabilize a portfolio by mitigating some of the risks associated with other assets.

• Diversification value:

  • Gold's value typically shows little correlation with stocks, bonds, and other assets, making it a valuable addition for diversifying a portfolio.

In conclusion, there are compelling reasons to contemplate investing in 1-ounce gold coins. These coins offer collectibility, a reasonable entry cost, and potential tax advantages, along with diversification benefits that make them a noteworthy option for investors. Explore your gold investment choices online to make informed decisions.