Ingots gold bars stacked aligned with some stacks of gold dollar coins. 3D illustration on white background.
Few investments can match the returns seen by gold in recent years. Bullion valued at $1,500 in March 2020 was worth more than $2,000 just five months later. This resulted in increased demand for the yellow metal, and some are even asking if buying international gold is the right move.
While there are certainly important factors to consider, investing in gold from foreign countries can prove profitable. Most people’s concern is whether they’re getting what they’re paying for. After all, the U.S. Government only guarantees the precious metal content of its own gold coinage.
The following guide will take an in-depth look at everything about buying international gold coins and bars. You’ll learn what you need to know before doing so, and how to avoid potential profit losses. Knowledge is power when purchasing foreign gold. By the end of this guide, you’ll have plenty of that.
Investing in foreign money is a legitimate practice that occurs on global exchanges. If you’re hoping to buy international gold coins, though, the process is a little different. No country bases its entire currency on precious metals, so this investment in these coins is possible.
Fortunately, investing in gold is actually much easier than this. Buying gold bullion bars and coins from foreign countries can be just as simple as purchasing American-made items. And even if buying international gold products is your goal, you can do so from many U.S.-based companies.
It’s important to note, though, that physical bullion isn’t the only way to do this. You can also invest in foreign “paper gold.”
Buying international gold stocks and ETFs has many benefits, but doing so also has significant disadvantages. To start, the gold will never actually be yours. So if you suddenly need it, you’re out of luck. Factors other than the spot price of gold can also affect these assets’ values.
Choosing to invest in ETFs and stocks as opposed to physical precious metals is a risky move. It also neutralizes many of the intended benefits you may expect when buying these metals. So while you can invest in foreign paper gold, remember that you’re not really investing in gold.
Whether you want to buy Canadian gold maple leaf coins, bullion bars from Switzerland or any other type of precious metal from overseas, there are a few things you should know. This is especially important with gold due to its high value relative to most other metals.
While you should always perform your own due diligence before purchasing gold, the following factors might be the most important considerations. If you keep these in mind, you’ll be well on your way to buying international gold coins and bars that can secure your financial future for years to come.
In 2017, three gold coins came out of the Monnaie de Paris featuring the symbol of liberty Marianne. One coin issued had a face value of €1,000, but the coin contained only about €570 worth of gold. If you’re investing in foreign gold, it’s vital that you pay attention to this.
What’s the point in buying international gold coins worth less than face value? There are actually many potential benefits. Thanks to the rise in gold’s price, for instance, the gold inside the coin was nearly worth €1,000 in 2020. If trends continue, its value will exceed the legal tender amount.
You now understand how some coins may have higher face values than their gold content. When buying international gold coins, though, it’s important to look at other measures of worth. There are three important values: face value, intrinsic value and numismatic value.
Face value is the legal tender worth of a coin, and intrinsic value is how much the gold inside it is worth. Conversely, numismatic value takes collectability and rarity into account. A rare coin could be worth far more than its weight in gold.
Consider the following values and how they vary within the same coin – an 1822 Half Eagle:
This is admittedly an extreme example, but the point still stands. While this is an American coin, similar foreign gold coinage exists. This doesn’t mean buying gold coins based on numismatic value is a bad idea, but when doing so, remember that it’s not the gold you’re investing in.
While it’s completely safe to purchase foreign gold coins and bullion bars, this is only the case if you take basic precautions when doing so. There’s plenty of opportunity for brilliant investments out there, but there are also ways you can spend too much or get taken advantage of.
If you avoid the following costly mistakes, though, you’ll likely be in a position to see a good return on investment.
If you search “gold bullion bar” on Wish.com, a beautiful set of one-ounce bullion bars pops up. And at $15 for three ounces, it’s insanely affordable. Of course, the bars aren’t actually real. When buying international gold bars or coins, stay away from deeply discounted sites like Wish.
It’s rarely a good idea to purchase gold overseas and then try to bring it back to America. If you do this, however, it’s important to remember a few things. Each of these can have a significant effect on your eventual profit:
These tips can help avoid fines and the potential loss of gold through theft or lost luggage. We cannot stress enough, though, that you should avoid buying precious metals overseas. Traveling with this much value is risky, and there are plenty of counterfeit items in foreign countries.
We live in a global economy, and this means you can invest your money just about anywhere around the globe. Unfortunately, there’s no real monetary standard throughout the world. Currency devaluation and inflation can take a brilliant investment and turn it into nothing.
Fortunately, that’s not the case when buying international gold coins and bars. When purchasing most of these items, you’re investing in their precious metal content. Fortunately, gold holds universal value and its standard is the U.S. Dollar. This means it maintains worth across the globe.
If you’re ready to get started with building your financial future by purchasing foreign gold, visit the Gold Products Page at Silver Gold Bull today. You’ll love our wide range of international flair, and you’ll no doubt enjoy some of the best prices and lowest premiums in the industry.
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