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Can Gold Coins Make You Rich?

by c-incognito
Gold Coins

Economy is not an exact science. A lot of people have tried to set up some rules that need to be followed, and when they hit the free market, they get completely obliterated. Economy is basically the study of human nature and how we interact with money. 

There’s a lot of psychology at play, and there’s always the element of surprise that can make the unexpected come true. Things that should not happen usually happen, and there’s a bit of irony there. That’s why you need to look at the history of the markets with a grain of salt. Visit this page for additional info: https://www.ndtv.com/business/gold-prices-today-gold-futures-edge-higher-silver-declines-2746553. 

Of course, it’s quite intelligent to take into consideration past performance. That helps every investor choose how to calibrate their portfolio and study other people’s mistakes. However, that should be considered as an estimate of what could happen and not a roadmap. 

You can’t look at previous percentage yields and expect future results. That’s never going to work. Still, a lot of retail investors tend to fall into the trap of over-relying on the data we have from the past. That’s because people who study the game want to think rationally. 

The laws in mathematics from a hundred years ago are still true today. This also applies to physics. A geologist can look at a rock and tell you what happened to it billions of years ago, and they can also make estimates about the future in the same manner. 

A doctor can presume that the intestines today work exactly the same as they did for the people a few thousand years ago. The thing that’s interesting here is that investing your money is not an exact science. It’s all a bunch of people who are agreeing or disagreeing about information. 

That information is usually limited, and every person brings in a bit of imperfection. That can be overconfidence, greed, paranoia, and even nervousness. It’s tough to predict how the markets are going to move in the future based on the data we have today. 

With time, everything changes. You might have read the book The Intelligent Investor and see that those principles don’t work as well today as they did 50 years ago. Even the author made revisions every decade to update the tables and the equations because things were changing fast.  

How does this influence precious metals? 

Modern investors think of precious metals as relics of the past. A currency that had its time and has been eaten away by the modern dollar, the euro, and the yen. However, there has been data in the past couple of years that prove the contrary. 

Every currency we use needs to follow a few criteria in order to be trusted by the people. Modern paper money systems are quite easy to make and forge, which makes them an easy way for governments to manipulate the masses. Luckily for everyone, the study of alchemy was a complete failure, and no one figured out how to make gold from other metals. 

There lies the power in precious metals. You can’t print more gold, and you can’t print more silver. You can go to this Iccoin review to find out more. The amount that’s still in the ground is all there is to it, and there won’t be any more when it all gets dug up and brought above ground. 

Now, unrefined metals are not worth that much, but when they get transformed into bullion or coins, then they get their true value. Silver and gold are still underestimated by savvy investors, who want to focus their attention on more speculative assets like Bitcoin. 

That’s all fine and dandy, but in the case of a solar storm, or an electricity outage, you can’t use Bitcoin or Ethereum to pay for food. Plus, the entire world can’t run on a digital currency because the world hasn’t been completely digitalized.  

Are coins worth more than bullion? 

Luckily for you, the rise in popularity of cryptocurrencies has also brought new eyes to precious metals coins. When gold and silver are introduced, this niche becomes as real as it can be. The entire niche of numismatics has seen a massive rise in popularity after the pandemic. 

People started to get frightened due to the small market crash, and they wanted to keep their wealth safe. Not only that, but inflation rates have been skyrocketing, and they’re getting as high as 7 percent per month. Even dormant investors are joining the market again because we can all feel that a recession is about to come. 

The NFT space has been largely responsible for the massive boom in collectibles. This was also hastened by popular YouTubers like Logan Paul and Gary Vee, who have created their own virtual collectibles. But, because people don’t see much utility to digital assets, they have been moving to the real deal. Additionally, people had a lot of free time during the pandemic to research their interests, and a lot of them landed in the world of numismatics.  

Why is the field becoming more popular? 

Coins have a lot of advantages. First of all, they’re quite small, and they can be worth a lot. To the untrained eye, a super rare coin might be nothing more than a collectible. But if you know the history and the space, you start noticing the subtle details. 

A lot of people collected nickels and pennies when they were kids, and this is just pursuing an old hobby. However, because modern numismatics are made from silver and gold, they have authentic and intrinsic value. Pokémon cards can come and go, and they can lose value because they were printed. 

However, the silver and the gold amount in a numismatic will always have a definable value. Also, you don’t need to worry as much about their storage as you would with bullion. You can keep them between a couple of layers of clothes, in a shoebox, or even in books. They’re super small, and they can’t be found even if a burglar comes into your home. 

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