There are a number of ways to invest in gold bullion. Regardless of how you want to expand your collection of gold bullion holdings, Hero Bullion has you covered. We offer an expansive selection of fine gold bullion coins and bars. We partner with the finest mints and gold bullion dealers to bring you the most pure and highly collectable items possible, and our carefully developed shipping procedures ensure that our customers receive their gold bullion without blemishes, marks, or imperfections. Even for people who have been around the bullion industry for years, choosing how to invest in precious metals can sometimes be a complicated process. But there’s no reason to worry; we’re here to walk you through every step of the process to buy gold bullion. Read on to learn more about the history of gold, the different types of popular gold bullion coins and bars, and the various ways that Hero Bullion makes purchasing quality 999 fine gold hassle-free. Is gold bullion a more stable asset than silver? How should investors decide which gold coins and bars are worth buying? You’ve got questions, and we’ve got the answers. Read on to learn more.
The History of Gold Bullion
It’s always important for investors to develop a solid understanding of the history of gold and other tangible assets they decide to invest in. But this consideration is especially important when it comes to gold and silver bullion as well as other precious metals. The value of gold is partially derived from its historical significance. Each year, retail and institutional investors alike pour trillions of dollars in fiat cash into gold, silver, and platinum bullion precisely because of the consistent value of gold bullion as a commodity.
Historians generally agree that the earliest humans attempted to refine gold and used gold bullion as currency happened over 3,500 years ago. Ancient Egyptians used gold as their official currency, and Egyptian leaders often demonstrated their wealth and prestige by decorating their homes with 22k gold. In Ancient Rome, the gold coin aureuswas used as a way to store value and facilitate trade. Lydians living in what would eventually become the country of Turkey used the precious metal to forge their own coins to be used as currency.
In the modern era, many countries have used gold to back up their fiat currency and hedge against the possibility of inflation. The United States introduced the “gold standard” at the beginning of the twentieth century. This meant that the value of the United States Dollar was directly tied to the relatively consistent value of gold, which was stored en masse inside the Federal Reserve.
While the U.S. eventually abandoned the gold standard, calls have repeatedly been made for the country to return to this method of stabilizing the value of the USD. These calls only further emphasize the immense stability and appreciation of gold bullion as a physical tangible asset. In fact, the World Bank’s president stated in 2010 that countries should return to the gold standard in order to better establish a clear value for international currencies and exchange.
The historical reason for the popularity of gold bullion as a valuable precious metal isn’t difficult to comprehend. Gold is element 79 on the periodic table and it’s atomic symbol is Au which stands for Aurum. Gold is a relatively rare physical commodity with a long history of holding value. The price of gold increases relatively slowly each year, but it increases fairly consistently. Compared to newer and more volatile investments like stocks, bonds, or cryptocurrencies, gold’s tremendous historical significance makes it an ideal choice for long-term, stable investment to hedge against both inflation and uncertainty.
Benefits of Owning Gold Bullion Coins & Bars
There are clearly quite a few major benefits to buying and owning gold bullion coins and bars. Working-class investors and billionaires alike have chosen gold as a valuable commodity to collect for over a century in the United States, and with good reason. People that buy gold bullion coins and bars as an investment aren’t just high dollar wall street investors. Buying gold bullion coins as a hedge against inflation or for survival are very popular reasons. Other people buy fractional gold bullion as gifts is a time-honored tradition in many parts of the world, where gold is considered one of the most valuable and beautiful gifts available.
Advantages of Stacking Gold Bullion Coins & Bars
Let’s run through a small list of some of the biggest advantages to buying and stacking a solid supply of gold bullion:
Hedge against inflation. This is one of the classic benefits of buying gold bullion, as well as other popular precious metals. Even the United States government once used a massive stockpile of gold bullion bars and coins to hedge against the threat of currency inflation over time. The key to this advantage is purchasing power. As the value of the dollar decreases because of inflation, the amount of commodities you can purchase with a given amount of currency decreases as well. But gold’s purchasing power remains steady over time. In this way, holding gold bullion allows investors to maintain the value of their assets, regardless of global currency inflation.
Limited supply While it is true that more gold is discovered and distributed every year, there is naturally a finite supply of this limited commodity. While governments can theoretically print an infinite number of their fiat currencies, gold is limited in its supply. This further cements its long-term value. Unless an extraordinarily large amount of gold is someday discovered in an obscure mine , it’s hard to imagine a scenario where the supply of gold increases enough to cause a collapse in its value.
Counter uncertainty Gold bullion is also an excellent way for the savvy investor to counter the possibility of financial collapse, especially during uncertain times. A number of global events could potentially cause economic problems for investors. The stock market is particularly susceptible to uncertainty; the COVID-19 pandemic caused a massive bear market for investors. By contrast, gold bullion remains relatively valuable, regardless of world events.
All of these benefits come down to the inherent value demonstrated by gold over centuries. There’s a reason several governments have historically relied on gold as a way to counter inflation and hedge against the possibility of financial collapse in the face of troubling global events. If you’re looking for an asset that has the potential to retain significant value in the face of nearly any conceivable financial future, look no further than gold bullion.
Types of Gold Bullion: Pros and Cons
Hero Bullion offers multiple ways for you to invest in gold bullion bars and coins. There are advantages and disadvantages to every type of bullion investment. Wise customers should carefully consider their short and long-term investment goals to make the decision that’s right for them. This section should give readers a solid introduction into the pros and cons associated with each of the main types of gold bullion Hero Bullion offers.
999 fine Gold bullion coins are a great way to commemorate major events, nations, or historical figures. Many gold coins are struck using .9999 pure gold and are designed by incredible artists using intricate details and brilliant obverse/reverse depictions. The high collectability of gold coins creates an investment with a high likelihood of appreciation in value over time. Collecting several coins in a series is a great way to structure a unique long-term investment strategy.
Pros to Owning Gold Coins:
Beautiful gifts Whether you’re buying for yourself or a loved one, pure gold coins are almost always beautifully designed. There’s nothing quite like holding a 999 fine gold coin in your hand. Many coins available from Hero Bullion are designed and struck by famous mints all over the world. Collecting them can provide you with a sense of history, as well as a decent amount of pure .9999 fine gold bullion.
Small units While pure gold itself is pretty expensive, gold coins are often available in fractional denominations. Instead of buying a full ounce of pure gold, collectible gold coins from Hero Bullion allow you to purchase pure gold in 1/20, 1/10, 1/4, and 1/2 ounce increments.
Cons to Owning Gold Coins:
Higher premiums. Because you’re paying for both the bullion itself and its design and minting costs, gold coins often require consumers to pay a higher premium on the spot price of gold than other products. Hero Bullion offers competitive rates, but gold coins are still a bit more expensive than many other gold items, including gold bars of similar weights.
Popular Gold Coins:
American Gold Eagle Available in a variety of fractional and full-ounce denominations and struck using .9999 pure gold bullion, the classic American Gold eagle from the U.S. Mint depicts Lady Liberty on one side and a family of Bald Eagles on the other.
Canadian Gold Maples The Canadian Gold Maple coins have been mined continuously for over 40 years. They depict the regal Queen Elizabeth II on the obverse and the Canadian sugar maple lead on the reverse side and are also struck with the purest gold coins available.
If you’re looking to increase your stock of gold without paying the premiums associated with gold coins, gold bars are an excellent choice. Modern gold bullion bars are usually struck using .9999 pure gold, and they often include their own brilliant designs.
Pros to Owning Gold Bars:
Lower premiums. For the larger gold bars, including the 1 kg gold bar, the total cost of a piece should be relatively close to the spot price of the bullion it contains. Smaller gold bars will come with a higher premium, but provide holders with greater liquidity potential. This is really the biggest advantage to buying gold bars compared to purchasing gold coins; it allows you to get more gold for your money.
Cons to Owning Gold Bars:
Diminished collector’s value. Although gold bars certainly come with their own beautiful designs, it’s hard to find a series of gold bars that holds the same kind of value to collectors that some gold coins maintain. The incredibly intricate reverse and obverse designs of gold coins allow them an additional source of value appreciation that many gold bars just can’t match.
Popular Gold Bars
PAMP Gold Bars The big upside to PAMP gold bars is their availability in a variety of fractional denominations; Hero Bullion offers these gold bars in grams, rather than just ounces. Struck with .9999 fine gold, these bars also include a unique smartphone verification and security feature.
Perth Mint Gold Bars Backed by the fantastic history and reputation of the classic Perth Mint, Hero Bullion is excited to offer the 1 oz Perth Mint Gold bar. It is available at just $64.99 over spot price, providing exceptional value to collectors.
One Kilo Gold Bars It’s hard to beat Hero Bullion’s full one-kilo gold bars when it comes to low premiums. Our kilo gold bars come from a random mint and are presented in random conditions, which allows us to bring you the most fair price possible.
Gold bullion Goldbacks have recently become extremely popular among investors because they are a particularly fun and interesting way to invest in gold bullion. Aurum’s goldbacks are beautifully designed notes that are usable as actual currency in several U.S. states, including both Utah and Nevada. As the name suggests, goldbacks include a thin layer of pure gold; their value is directly proportional to the amount of gold a given note contains.
Pros to Goldbacks:
Novelty Because they’re such a unique type of gold bullion investment, goldbacks make exceptional gifts. Their functionality aside, there’s something fascinating about holding these beautifully designed notes that contain .9999 pure gold.
Practicality Especially if you live in a state where many companies and establishments accept goldbacks, the big plus to this form of gold is its usability. You can use your gold products to purchase actual goods and services, eliminating the need for liquidation.
Designs The brilliant and collectable designs on the Aurum goldback series are great for collectors.
Limited adoption If you’re buying goldbacks for the purpose of using them as a form of currency, you’ll need to be sure that the establishments you frequent accept them. Many companies don’t, even in the few states where goldbacks are relatively commonly accepted as payment.
Popular Gold Bullion Goldbacks:
Nevada Aurum Goldback Series We currently offer the full Nevada goldbacks series by Aurum, including the one, five, ten, twenty-five, and fifty denominations. Each of these notes includes a design which represents one of the five ‘virtues’ held close to the heart of the Nevadan identity.
Utah Aurum Goldback Series Hero Bullion offers the Utah goldbacks in five denominations, 1, 5, 10, 25, and 50. Like the Nevada series, the brilliant designs on the obverse of these notes help to cement their value as both a novelty and a functional alternative currency.
The Hero Bullion Difference
Hero Bullion is happy to bring you some of the finest gold bullion products available today. Our shipping process has been deliberately designed to keep your items as safe as possible during packaging, transit, and delivery. We know how frustrating it can be to order high-quality gold bullion coins, bars, or notes – only for it to arrive damaged or blemished. Customers can count on Hero Bullion to deliver solid gold bullion bars and coins without the threat of damage.