The origins of investing in gold can be traced to the issuance of the first bullion coin – South African Krugerrand. Taking into account that it took place quite recently – in 1967 – proving the thesis that investing in gold is a relatively young practice misses the point. Someone might ask: why people came up with the idea of investing capital in gold only in the 20th century?. The answer is quite simple – investing in golddidn’t make any sense before that. How to invest in something that functions as money on a daily basis?
Taking into consideration, how easily investment gold has gained acceptance among investors around the world, it is naturally to conclude that people are losing patience with paper money. Is this right?
Nowadays, the growing number of turbulences on the financial markets makes the public’s trust in paper money constantly diminish. It’s hard to get rid of the idea that we consider money only as a means of payment, do not we? Take a look at the history of paper currency. From the very beginning, it has faced many problems – dishonesty of the authorities, political and geopolitical conflicts and many other factors that have made it almost impossible to maintain the real value of paper money. When required, there is always the possibility of printing the necessary amount of paper currency, which cannot be said about gold, whose resources are limited. What, then, is money that can be manipulated without too much trouble? What is its value?
Moving away from gold standard stops being so painful when you realize that physical gold can still be in your investment portfolio. Investment gold is an excellent form of capital protection against inflation, undesirable decisions of governments and adverse actions of financial institutions, including banks. In other words, as former Federal Reserve Chairman Alan Greenspan once said, “gold is the guardian of value par excellence”.
Gold investment market in Poland
For those who just started their adventure with physical gold the most important question is: which product should I choose? The growth of the gold investment market has made it very challenging for all the investor. At the very beginning we reject all kinds of jewellery and numismatic products. When investing in gold, the key factor is the percentage of pure gold in a product, not its aesthetic or collectible value. Simply put, investing in typical investment products is the most “economical”. However, there is a group of gold investment products that are not only an excellent investment for every pocket, but are also a perfect combination of investment and love for relics from past eras. Let us introduce historical bullion coins.
Historical coins can be considered, in a way, a piece of history enclosed in a small “bullion” size. They are an excellent choice for investors with less capital and for true history freaks as well. What may be more beautiful than holding in your hand a coin that was once legal tender and used by our ancestors for daily transactions?
Most popular historical bullion coins
In contrast to typical investment bullion coins, such as the iconic Krugerrand or Australian Kangaroo, historic bullion coins are not just a form of capital investment. They also carry collector’s value. However, this is not the only feature that sets historic investment coins apart from other gold products – the Valcambi gold bar or the Canadian Maple Leaf did not once function as legal tender.
Investment decisions should be made considering different factors, including the latest market data. Please make an appointment for a free consultation – over the Internet, by phone or in person at our office.
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