6 Benefits of Buying Australian Gold Coins
Does the prospect of investing in gold or collecting coins appeal to you? Then you might wonder, are gold coins worth buying? That’s the question on many people’s minds, so let’s talk about some of the benefits of buying Australian gold coins.
When investing in gold coins, pros and cons are crucial to consider. Like every hobby or investment, there are advantages and disadvantages. All things considered, buying Australian gold coins is an exciting (albeit somewhat addicting!) venture.
Before you hop to the task, why invest in gold in the first place?
What Is The Benefit Of Buying Gold Coins?
Let’s face it; we rarely see our money in physical form these days. With online trading, digital financing, and online accounts, tangible cash is few and far between.
Gold coins, however, are reliable, physical, and worth more than their singular value. While every investment has its risk, Australian gold coins are low-risk with many benefits. Let’s take a closer look at some of the best reasons to join the trade.
1. Australian Gold Coins Hold Long-term Value
In an extensive analysis published in the book The Golden Constant, Professor Roy Jastram examined the statistical value of gold over about 450 years. His findings? While the value of cash fluctuates with inflation, gold remains valuable.
Severe economic downturns are inevitable, especially in light of extenuating circumstances (COVID-19, for example). Yet despite recessions and depressions, gold has endured as a means to protect wealth. Gold coins are a small commodity with a sizable return.
In times of financial strain, you can grab from your gold coin stock and depend on stable market value to bide by in hard times.
2. They're An Inflation Hedge
The Australian inflation rate has held a steady 4.90 per cent average between 1951-2020, but it’s not been without significant peaks and valleys. For instance, 1951 saw a 23.90 rise, while 1962 dropped to -1.30.
Ultimately, a secure nest egg is vital to have around when inflation skyrockets and necessities like petrol jump to A$ 2.28 per litre, which we experienced in 2013.
According to the Perth Mint, “gold tends to have a low correlation to ‘risk’ assets — that is it tends to go up in value when other asset classes go down.”
The takeaway? Inflation peaks are inevitable, and having stable gold coins in possession can protect you and your loved ones as you weather any economic storms that arise.
Speaking of which...
3. If TSHTF (The S*** Hits The Fan) You’ve Got A Tradeable Asset
However you interpret the acronym, none of us are impervious to natural disasters, political instability, or financial crashes. Remember tightening the wallet during the 08-09 global economic slump? People flocked to discharge their high-risk assets and reinvested into gold.
Now, we’re living through this theory. During the COVID-19 health crisis, gold prices have ticked up by 18.39 per cent.
The data is clear: during times of crises or economic crashes, gold thrives.
But gold investments aren’t relegated to doomsday preppers. Instead, gold coins diversify your investment portfolio—more on that below.
4. Diversify Your Wealth
When it comes to investing, any smart investor’s goal should be to diversify their portfolio. It’s the same reason you don’t just buy Park Place and Boardwalk property in Monopoly. Along the way, you also pick up some railroads, income tax slots, and maybe even a few brown and pink properties.
The point being, throwing all your eggs in one basket is a considerable risk, because what happens when you drop the basket? No one likes runny eggs everywhere.
But back to gold, it’s a non-correlated asset, meaning if your property investments plummet during a housing crisis, gold comes out unscathed.
Gold coins act as investment insurance, especially during times of extreme financial uncertainty.
5. They're A Private Investment
Unlike public investments like property and publicly traded stocks, buying Australian gold coins is entirely private. Why is this important? Because as you accrue wealth, you don’t want anyone to know exactly how much you have, right? Especially those pesky relatives who tend to overstay their welcome?
Above all, as your wealth appreciates and your investment portfolio grows, you eliminate third-party risks and the public infringing on your private assets.
6. Gold Coins Are Accessible To All
Perhaps the most significant advantage of buying Australian gold coins is that they’re widely accessible. Unlike other high-risk investments like property and trading, buying gold coins is almost a sport or hobby. Gold is internationally traded abundantly every day, making it a highly liquid asset and easy investment market to break into.
In other words, gold coins are easy to buy and manage with programs like the Perth Mint safe storage and trading via the Australian Securities Exchange. Whether you’re just starting and looking to diversify your wealth, or you’re an established investor, Australian gold coins are accessible to all.
So, are you ready to get your hands on a pile of yellow coins?
Buy Australian Gold Coins Today
When it comes to the best coins to buy for investment, Australian gold coins have been unfalteringly valuable. What Australian coins are worth money? Some of the rarest of the lot include:
The 1894 Gold Sovereign Melbourne Mint
The 2010 Perth Mint Proof Australian Sovereign
The year 2000 Mule dollar
The 2007 Double Obverse (Head 5 Cent
The 1966 20 Cent Coin Wavy Line
But these are just the cream of the crop, and there are more to discover! Wondering where to buy gold coins? The Treasures Auctions Network is an official Perth Mint Distributor since 2007, specialising in the selling of Perth Mint Gold coins and investor and collector coin lots.
Within our network, our sister site Coins Auctioned has been in the business of selling coins and gold bullion bars since 2009.
Are you looking to diversify your wealth, protect your assets, and jump into an exciting, low-risk investment opportunity?
Treasures Auctions Network is a globally trusted, recognised, and authorised Perth Mint partner offering an extensive collection of Australian gold coins, bullion bars, and silver coins. Find yours today!
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