Investing in Gold
Gold is the ultimate insurance policy - an essential part of your portfolio. Here’s how to invest in it..
Our Expertise
Gold can be a very useful way to diversify your portfolio. It's relatively rare, and its value often doesn't move in line with other assets such as equities or property.
At Patriot Wealth USA we believe that gold provides insurance for your portfolio, and we recommend that our clients allocate around 5%-15% of their portfolios to gold or gold-related investments.
Benefits of Gold
Gold is respected throughout the world for its value and rich history, which has been interwoven into cultures for thousands of years. Coins containing gold appeared around 800 B.C., and we’ve continued to use them since.
Gold is the metal we fall back on when other forms of currency don't work, which means it always has some value as insurance against tough times.
Types of Gold
Gold investment comes in various different forms. For smaller purchases, many of our clients prefer to acquire physical gold in the form of coins or bars. For larger investments, many prefer paper.
Some of the most popular types are below:
Modern bullion coins and bars
Modern bullion coins allow investors to own investment-grade gold legal tender coins at a small premium to the spot price of gold as quoted on the markets. The value of bullion coins and bars is determined almost solely by the price of gold, and thus follows the bullion price.
Semi-numismatic and numismatic gold coins
Numismatic or older and rare coins are bought not solely for their precious metal content, but also for their rarity and their historical, aesthetic appeal. They are leveraged to the gold price, which means that the price of these coins will generally increase faster than the gold price in a bull market and will decrease by more when gold is in a bear market.
Gold certificates
Purchasing Gold Certificates allows you to own investment grade gold which is stored in vaults. You will never have the Gold in physical possession, you own a promise from the Mint to give you back your gold if you want it.
FAQ
What are the different types of gold bullion?
Gold bullion is available in the form of coins, rounds, and bars. Gold coins are different from the other two options in that they are produced only by government mints and carry a face value in their country of origin. Many countries throughout the world produce their own gold coins containing a wide range of designs and sizes. Gold bars and rounds are produced by private mints and are usually found in a wider selection of sizes than that of coins.
How are spot gold prices determined?
Gold is a commodity that is traded all over the world, and as such, it trades across many different exchanges, such as Chicago, New York, Zurich, Hong Kong, and London. The COMEX, formerly part of the New York Mercantile Exchange and now part of the CME Group in Chicago, is the key exchange for determining the spot gold price. The spot gold price is calculated using data from the front month futures contract traded on the COMEX. If the front month contract has little to no volume, then the next delivery month with most volume will be utilized.
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