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Gold is equivalent to real money. Unlike other assets like traditional stocks and bonds, even legal tender – which really just represent the value of money, gold can retain its value even when there is an economic downturn. This is the reason why sensible and practical investors go ahead with investing in gold. “Buy gold coins and watch them grow.” People say that buying physical gold often gives promising returns to smart investors.
Financially speaking, owning tangible gold is similar to owning real estate, only you typically don’t worry about mortgages. Compared to traditional stocks and bonds, the value of gold remains consistently high despite major shocks in the economy and it is all about maintaining the integrity of your savings from the liabilities created by the economic crisis. Nothing better than investment. Buy gold coins and save them for a rainy day.
Now that you know the real impact of gold in a steady stream of income, you probably want to know how to use gold to build the foundation of your wealth. If you are someone who is retiring, you can invest using Gold IRA. With this IRA, you can invest in tangible gold such as gold coins and bullion. Sleeping in an IRA can certainly provide you with more protection than other types of investments, especially when faced with financial setbacks that are often related to medical bills, debts, and a pile of expenses. When you can no longer afford to work for yourself, sleeping in an IRA will serve as your lifesaver.
If you want to invest in a coin gold, buy gold coins only after determining the purity and weight of the gold. This is the amount of actual gold contained in a coin. Keep in mind that gold coins are also made using other metal alloys, which is why there is no such thing as a pure gold coin. Metal alloys are usually mixed with gold to make coins stronger. Gold coins for potential investment usually contain at least 22 karat gold.
If you also want to diversify your gold investment, then buy gold coins from other countries as well. Some alternatives to the American Eagle gold coins would be the Canadian Maple Leaf, Chinese Panda and Austrian Philharmonic coins. You also need to study the specifications of these coins to make them viable for investment.
If you want to invest in gold then you need to be smart. Buy gold coins when they are cheapest and hold onto them until you can sell them at their highest price. Timing is to your advantage as the value of the coin increases annually.
Compared to other investment options, gold does not come under capital gains tax. If someone has physical gold, such as bars and coins or gold certificates, that are backed by physical gold, the IRS will treat it more as a collectible than as a source of investment.
However, if someone buys bullion and coins, it is likely that the person who bought it will eventually sell them. Then you should consider what happens if you sell your coins. If the coins are sold for less than a year, the money you earn is counted as ordinary income and taxed accordingly. But if you sell the gold after holding it for a year or two, the returns are taxed at a maximum of 28%.
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