The physical gold market provides investors several product options. The choice of tangible gold product is largely a matter of the investors’ goals and resources.
Gold is primarily purchased as a store of wealth, as a “hedge” against inflation, and as insurance against fluctuations and depreciation of paper money. Though less common, gold is also purchased for its bartering potential. If necessary, fractional gold products (those that contain less than one troy ounce of gold) could be used as a medium of exchange. However, because silver is available in smaller denominations and therefore more convenient, it is the preferred barter metal. Even a one-tenth ounce gold coin would cost approximately $214.00 to $225.00 (as of June 7, 2023). Varying “premiums” (which include dealer premiums and commissions, all shipping costs and insurance) and Independent Retirement Account (IRA) regulations are also important to consider when deciding between the different products. Currently, the U.S. Internal Revenue Service (IRS) allows specific physical gold products to be included in a self-directed IRA if certain rules are followed.