3 Reasons Shrewd Investors Love the Secondary Gold Market

At the beginning of the month, we answered a few common questions on the secondary gold market. Since then, we’ve spent some time outlining the benefits that keep many investors going back to it time and time again.

Whether you’re a novice or a veteran, the secondary gold market offers a genuine opportunity to increase your investment holding in gold.

Here are the top 3 reasons why:

  1. Rare and valuable coins are hidden away on the secondary gold market

The secondary gold market is a coin collector’s paradise, offering countless avenues for tracking down rare and widely sought-after coins.

These rare coins, which are highly appealing to coin enthusiasts and avid collectors, can also make worthwhile investments. As they become naturally older and rarer over time, their value is very likely to increase, particularly if they’re in good condition and can be sold as part of a full set.

Whilst it’s not always easy to find this type of coin, it can be a very lucrative opportunity, especially if you’re able to buy gold coins for less than they would sell for brand new.

  1. Smart investors can buy cheap gold bars on the secondary market

Those seeking an opportunity to buy cheap gold bars could be able to do so by taking advantage of the secondary market.

You pay a premium for brand new gold bars in (you guessed it) mint condition. Of course most of this price is the gold itself, but some of the fee also goes to the covering the ‘fashion fee’. This is a small additional charge added to the market value of a gold bar or coin by the mint to cover the cost of packaging.

By pursuing second-hand gold bars on the secondary market, an investor can avoid paying the higher premiums that the current version might carry. The sacrifice is that you might be buying a gold bar with damaged or non-existent packaging.

  1. Don’t forget that secondary gold is still fine gold

Whilst a lack of packaging could mean the product shows more wear and tear, it’s worth remembering that it will still contain the same amount of fine gold and this is where the bulk of the value lies.

Regardless of how old it is or how many times it’s changed hands, a gold bullion product will always contain the same amount of fine gold as the day it was produced. Its value, therefore, is still related directly to the live spot price of gold.

It is remembering this (and learning to live without the satisfaction that comes with owning a brand new and pristine gold bar or coin) that can give you the edge over other investors.

However, don’t forget to be on the lookout for people who might not be selling the genuine thing. Wherever possible, buy gold from companies with a strong history of positive reviews and feedback from their customers.

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