A common question asked among new investors in the precious metal world is “Which Bullion Should I Buy?”. With such a large selection of coins, rounds, and bars to choose from, it can be difficult to choose which one to buy.
It's important to note that there are several reasons that people buy bullion, and before choosing which bullion to buy, you should think about why you are purchasing.
1. Returns and Diversification
If you are most interested in generating a long-term return on your investment, then you should look at purchasing bullion that has the lowest premium.
If you’re interested in purchasing silver, bars tend to have less premium. Generally speaking, the more ounces you purchase, the less premium you pay. Royal Canadian Mint bars are very popular among American investors. Depending on your budget, you can choose between the 10 oz Silver Bars - Mint Varies or the 100 oz Silver Bar. Its classic design, quality, and purity make these bars a great investment piece.
10 oz Silver Bars - Mint Varies
Royal Canadian Mint 100 oz Silver Bar
If you’d like to purchase gold, bars tend to also have a lower premium since there is more demand for gold coins because of the ease of storage. A popular gold bar is the Royal Canadian Mint 1 oz gold bar.
Royal Canadian Mint 1 oz Gold Bar
It’s important to keep in mind that although bars tend to have lower premiums than coins, sovereign mint coins still make a great investment due to their ease of storage, the ability to sell one ounce at a time, and their tender value. It’s recommended to purchase both coins and bars to diversify your precious metals holdings. The most purchased coins among Canadian investors with the lowest premium are the Maple Leaf coins from the Royal Canadian Mint.
Gold and Silver Maple Leaf Coins
2. Safety and Liquidity
Precious metals provide safety and security to investors. With the uncertainty and rampant distrust in fiat currency and financial institutions, investors want to protect themselves from any potential collapse of the banks and currencies. Buying precious metals allows you to physically hold your assets, which you can fall back on if you cannot withdraw money from your bank account.
In addition, due to inflation, the value of your money decreases over time, which is why many investors purchase bullion, specifically gold bullion. Historically gold has been resilient and protected from inflation. Gold prices tend to flourish during times of economic and financial crisis. Most recently, geopolitical unrest along with high inflation pushed gold to reach all-time highs. Gold is known to be a safe haven and a hedge against inflation. Over the past 10 years, gold has yielded an average 4.57% annual return. The Federal Reserve sets its target inflation at 2%, so by investing in gold, you are ensuring that your money holds its value, as well as protecting your capital and wealth.
One of the safest and most liquid bullion pieces in the United States is the American Eagle coins.
2024 1 oz Silver American Eagle Coin
2024 1 oz Gold American Eagle Coin
3. Collectors Coins/Numismatics
Some investors like to collect unique silver and gold coins that either have historical or sentimental value. These coins tend to have a higher premium because of their intricate design, lower mintage, and uniqueness. Coins with low mintage are considered rarer, which over time can be sold for a higher spread over the spot price, which differs from investment-grade bullion.
An example of a low-mintage numismatic coin that collectors love is the 2022 2 oz Australian Mother & Baby Dingo Silver Coin. This coin has a limited worldwide mintage of 75,000 units.
2022 2 oz Australian Mother & Baby Dingo Silver Coin
Another popular collector's piece is the 2023 1 oz Tudor Beasts Yale Of Beaufort Gold Coin The Royal Mint. The Tudor Beasts series by the Royal Mint is a classic series and the 2023 version is the last coin in the series featuring Queen Elizabeth.
2023 1 oz Tudor Beasts Yale Of Beaufort Gold Coin The Royal Mint
Whether you are looking for return on investment, safety, liquidity, and/or collectors’ items, we have a large selection of gold, silver, and platinum products that will suit your needs. Place your order online or call us at 1.888.861.0775 to get started today!
Don’t miss a golden opportunity.
Now that you’ve gained a deeper understanding about gold, it’s time to browse our selection of gold bars, coins, or exclusive Sprott Gold wafers.
About Sprott Money
Specializing in the sale of bullion, bullion storage and precious metals registered investments, there’s a reason Sprott Money is called “The Most Trusted Name in Precious Metals”.
Since 2008, our customers have trusted us to provide guidance, education, and superior customer service as we help build their holdings in precious metals—no matter the size of the portfolio. Chairman, Eric Sprott, and President, Larisa Sprott, are proud to head up one of the most well-known and reputable precious metal firms in North America. Learn more about Sprott Money.
Learn MoreYou Might Also Like:
Looks like there are no comments yet.