Better To Invest In Gold Eagles Or Mexican Gold 2 Pesos?
Thursday, September 12th 2024
Gold has long been considered an investment that offers security in volatile economic times. A tangible asset with intrinsic value, gold offers investors a solid return. In this guide we look at two popular forms of investing: American Gold Eagles and Mexican 2 Pesos. Although at first glance they appear similar, each offers distinct benefits as well as potential drawbacks.
Understanding Gold as an Investment
Investors frequently turn to gold as an asset and hedge against inflation (1). Unlike currency investments, gold does not fluctuate with economic changes – maintaining its value regardless of current market conditions due to its rarity and multitude of uses in manufacturing or jewelry production.
Gold does not generate passive income like stocks or real estate do; so, its potential profit comes from price appreciation over time. A key decision investors face when investing in gold is choosing how best to do so – one popular method being buying coins like American Gold Eagles and Mexican 2 Peso coins.
Investing in American Gold Eagles
American Gold Eagles are widely revered gold coins worldwide. First authorized for mintage by the U.S. Congress in 1985 and first produced starting 1986, these coveted coins combine gold with copper for enhanced hardiness and durability than pure gold coins.
American Gold Eagles come in several sizes – ranging from one ounce down to as small as one-tenth of an ounce – which gives investors flexibility when selecting an investment strategy suited for them. They typically carry a higher premium over spot price due to their widespread appeal and recognition.
American Gold Eagles are also guaranteed by the government for their gold content, weight, and purity – adding further peace of mind for investors.
Investing in Mexican Gold 2 Pesos
The Mexican Gold 2 Pesos coin is another excellent gold investment option, first produced between 1919 and 1948 and re-stretched between 1951 and 1972. Each 2 Peso coin contains 0.482 ounces of pure gold for an overall content of 0.900 pure.
Mexican Gold 2 Pesos tend to carry a lower premium over their spot price of gold than American Eagles and may make these investments more accessible for novice investors with limited funds or those on tight budgets.
American Gold Eagles remain popular investment options; however, Mexican 2 Peso coins offer their own special cultural and historic appeal which could attract certain investors.
Liquidity
Liquidity refers to how easily an investment can be bought or sold without impacting its price. American Gold Eagles, being widely known and revered, boast exceptional liquidity – this means should you choose to sell, finding a buyer should likely not pose much difficulty.
Mexican Gold 2 Peso coins may still be of considerable worth but may be less well known than their American counterparts and therefore more difficult to sell in less well-known regions.
Diversification Is Key
- Diversifying investments across different assets to spread out risk.
- Diversifying your gold portfolio by investing in both American Gold Eagles and Mexican 2 Peso coins may provide added resilience.
- This strategy strikes an appropriate balance between the high liquidity and recognition offered by American Gold Eagles and Mexican Gold 2 Pesos in terms of cost savings and unique appeal.
Consider Cultural and Historical Value
Gold coins offer much more than just pure value as investments; some investors find them attractive due to cultural or historical aspects as well. American Gold Eagles feature Lady Liberty alongside Bald Eagle to represent American ideals of freedom and independence.
Mexican Gold 2 Peso coins feature designs that celebrate Mexican culture and history; this may play an influential role in your investment decision process.
Understanding Market Factors
- Gold prices can be affected by global economic stability, the strength of the U.S. dollar, supply and demand dynamics as well as fluctuations in global economies.
- American Gold Eagles may be more sensitive to global economic fluctuations due to their high liquidity and international recognition.
- While Mexican Gold 2 Pesos may still be affected by these factors, regional economic conditions could play an even larger role.
Evaluating Your Investment Goals
Selecting between American Gold Eagles and Mexican Gold 2 Pesos ultimately depends on your personal investment goals. If you prefer highly liquid investments with wide recognition that can offer some degree of size flexibility, American Gold Eagles could be ideal.
Mexican Gold 2 Pesos may offer an easy entryway into gold investment with lower costs or historical and cultural relevance; making this coin suitable as an entrypoint to this specialized field.
Thinking Long Term
- Gold investment should generally be seen as a long-term commitment.
- Gold prices tend to remain consistent over time and have usually maintained their value over the long-term.
- Consider your financial goals, investment horizon and risk tolerance before investing in American Gold Eagles or Mexican Gold 2 Pesos.
Conclusion
American Gold Eagles and Mexican Gold 2 Pesos both serve as valuable investments that should be included in your portfolio. While American Gold Eagles offer greater liquidity, Mexican Gold 2 Pesos provide an affordable entry point with unique cultural significance.
At its core, selecting between Gold Eagles or Mexican Gold 2 Pesos investment rests upon individual preferences, budget, and long-term financial goals. Research should be performed thoroughly prior to making this important choice – gold remains a reliable asset in today’s investment marketplace regardless of the form it takes.
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2 Comments
Hello Chris,
I love your video this makes it easy to compare both coins!
Susan
Hi Susan,
Thank you for the kind words and happy investing!