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General Investing

Determining The Best Gold Bullion Coins For Investing or Collecting

Recognize fluctuations in gold coin prices and determine the best opportunities for gold coin investing.

In general, avid coin collectors are not entirely interested in private owned companies, such as the Bradford Exchange and Franklin Mint, who produce so-called collectible gold coins of various types since they are not actually an official government corporation. Despite the fact that certain products produced by these companies still increase a little in gold coin prices within the secondary market, their gold coins have generally performed very poorly. There are some exceptions which include of a few early Franklin Mint gold coin sets which were produced. Professional coin dealers used to just place these coins on a scale to weigh them, and compensate approximately 90-95 percent of the spot price once they have been verified to be real gold. The United States Mint, on the contrary, is an official government mint whose gold bullion coins perform much better on the secondary market especially over the course of a long period of time.

For the bullion offerings, such as the Gold Eagles, the mint and proof versions of these coins sold online at the United States Mint website have the same bullion purity content which is usually reserved for regular coins, but they adhere to a fairly higher standard of quality and are in limited quantities. Both versions of these coins have the potential to be excellent investments. However, whichever product you purchase will greatly depend on your collecting or gold coin investing goals.

For example, if your main goal is to buy gold bullion strictly as a form of investment, it is best that you do not even consider purchasing these coins at all, rather, buy generic gold bullion bars or ingots which are sold for a few percentage points above spot price. The US Gold Eagle, as well as the Canadian Maple Leaf and Chinese Panda are all prime examples of gold coins issued by government mints which have premium mark-ups on them. The country of South African produces the Krugerrand which traditionally has lower premiums. However, the lowest of all gold coin prices are the bars and ingots produced by various European banks such as Johnson-Matthey, PAMP and Credit-Suisse. For the United State of America it would be banks such as SilverTowne and Engelhard.

If you are purchasing gold for the sole purpose of storing them as bullion, then it would be wise to purchase the types that have the lowest commissions on them which are the bars and ingots manufactured by the aforementioned refiners. But if your interest is leaning more towards collecting aesthetically pleasing gold coins that also have the stability of bullion investments it is highly suggested that you contemplate buying American Eagles, Canadian Maple Leafs, and Chinese Pandas. Moreover, consider buying classic USA gold, such as the Saint Gaudens Double Eagles, since they trade at gold bullion value with an additional 7-10 percent for the majority of grades and dates. These particular types of gold coins have a double benefit where the gold in them will always be worth bullion value, regardless of the condition of the economy and that they are extremely rare since the bullion is stored in a one hundred plus year old American coin. The exact figures of how many were produced are not known and the current premiums on them are minimal considering their rarity and potential.

To determine which gold bullion coins are the best to buy you need to establish whether you are an investor or collector. If you truly appreciate the beautiful designs and images on the gold coins themselves including the way they feel in your hand and the feeling of achievement upon completing full sets, then collecting gold coins would most likely be your hobby. Keep in mind that you are still able to purchase with an attitude that it will make a profit someday since a good number of enthusiastic collectors have this type of goal in the back of their minds. Nevertheless, if your main purpose is to simply store up gold bullion for that rainy day, or you are hoping that gold coin prices will go up in value and you will be able to sell for a hefty profit someday, then buying bullion for gold coin investing purposes would be your best bet. When choosing this route a good tip is to try to avoid paying the premium commissions that collectible gold bullion coins inherently carry.

Whichever type of gold bullion coins you decide to buy you need to make absolutely sure that you take delivery of your purchases immediately. At no time should you allow companies to store your bullion in their vaults for you. If these companies become bankrupt or emerge as victims of corruption, you will be left holding a note that is not worth the paper it is printed on. Take delivery of your gold coin investments and safely store it in a location which is completely under your own control. The best place would not be under your mattress but preferably at a financial institutions safety deposit box.

General Investing

All You Need to Know About Gold Proof Coins

Gold proof coins are especially minted for those who are interested in collecting coins and for presents to be gifted for special occasions. Such coins are not meant for purposes of circulation. These are usually manufactured as samples of preproduction and are a definite designation for such coins. The blanks are specifically created to mint proofs and are quite highly polished prior to their striking. These coins are produced using a special procedure giving it a shinier and glossier appearance in comparison to its bullion counterpart. Even the dies of such coins are thoroughly polished and specially prepared before using to mint them.

Gold proof coins are struck in a unique way and are given a special finish as well. Being produced in fairly limited amounts, they are quite rare. With the passage of time the value of these coins has been consistently increasing. Most often they are more expensive than their bullion cousin. The main reason for the difference in price between these two items of gold lies in the fact that the coins are rarer and their process of minting is comparatively expensive. Before you invest in such coins, you must bear certain essential factors in mind. Some of them have been outlined and explained in the following section.

A vital aspect while buying gold proof coins is that you must be aware of the fair price of the coin that you are interested in. This will prevent you from overspending while purchasing such a coin. It is recommended that to do some research on various dealers before buying such coins. Another vital aspect that you must know in this context is the distinction between such coins and gold bullion coins that closely resemble them. In this way you will be able to avoid the mistake of buying the wrong type of coin.

Another essential aspect while purchasing gold proof coins as opposed to the gold bullion is to know about the rate at which such a piece appreciates with the passage of time. You can do this by making a comparison of the difference in prices of such identical coins that had been produced in various years. One basic rule is that the older such gold coins, the more valuable it will be in comparison to its identical, newer counterparts. However, there is one exception to this rule. That is applicable if in a particular year lesser than usual coins are produced. In such a situation of scarcity, a newer coin can have greater value than its older identical counterparts.

Similarly, there are official figures which reveal that prices of gold bullion have steadily risen over the years. Historically, these items have proved to have the ability to supersede global recessions by being able to do well even when various other methods of investments fail to do so. It has managed to soar in value even when currencies have fallen drastically and has grown from strength to strength during situations of high inflation. Therefore, if you wish to reap some monetary profit, you can consider investing on these or gold proof coins. There are many around the world who stick to this safe and reliable method of investment.

General Investing

Advantages of Buying Gold Coins

Paying for gold coin, is turning out to be the most effective way of making money. In fact, it is not an innovative trend of making money, as it is an ancient strategy. So, what the exceptionality is here. In the primitive time, the value of gold was not so high like the recent time. Therefore, everyone was able to buy this treasure. However, it is one of the most costly treasures in these days. For that reason, most of the people are making investment in gold. If you are confused where to invest your money, then you are suggested to invest in gold due to its superbly rising price.

It is a fact that most of people are purchasing gold or investing their money in gold in these days. However, a number of people are even not aware with the importance of the gold investment. For that basis, they often save or invest their money in the banks. Let discuss what kind of advantage a person can get if he or she invests in gold instead of saving in banks. Normally, the banks provide nearly ten percent of interest per year. It means you need to wait nearly ten year to make your capital double. But, if you buy gold rather than making any investment in bank, then you can find that there is a huge profit, especially in this period. Even according to the market experts, the gold prices will be more than double within two years. So, you can realize what kind of amazing offer you can get from here.

Let discuss what kind of benefits you can find if you invest in gold rather than signing any an insurance or share marketing. In case of insurance, there is a bit of more profit than the bank, but it is not effective one at all. In case of gold coins or gold bullion, you will be always on the safe side as there will be no chance of decreasing the price at all. But, in case of share marketing, there is massive chance of having huge loss, and even you can run on minus. Apart from all these facts, the gold coins play a vital role while people face heavy financial trouble. Regarding that, all people need to make investment in gold for securing their future as well as financial base. Not only that, but it is also the key of making fast money in the recent time.

General Investing

Investing in Silver Coins

Investing in commodities such as in silver is a serious deal and one must be careful when dealing with the seller. The risk involved is higher for silver purchase online. One most commonly bought form of silver are silver coins mainly because buying them had become practical as they are easy to store. If you are looking to invest in similar size gold coin, it would also be advisable to try and invest in silver coins.

Silver coins are made both by the government mint as well as many other private mints in USA. They are all made with the same exact quality specifications. The finishing of the American eagles are always polished and with the front of the coin engraved with the walking liberty and the other side with an eagle spreading its wings with stars above it. It is because of these extra works on the precisely made coin, the cost of American eagles is a steep higher that than more generic silver rounds. Silver rounds are plain simple coins made with silver of 99.99% purity and one troy ounce weight exactly like that of the government silver coins.

Coins issued by the government mint are of three types mainly, the regular silver coins which are circulated, the ones which are special edition or uncirculated limited coins and the proof coins. If you are a regular investor who is interested in only the silver contained in the coin and nothing else, then you should go to the regular in circulation . The special edition coins and the uncirculated coins are of interest for those who are into silver coin collection. Collectors would love to pay any extra premium to get their hand on that very rare special edition 1 oz silver coins which are specially released for a particular occasion and in a limited number. Sometimes particular batches of coins which have been misprinted gets released into circulation and get discontinued immediately after finding it out. Such coins which go into circulation will have a huge demand among the numismatics. Proof coins are the regular silver coins but the image on the coin being more clear and appreciative. They got better mirror like finish and looks very attractive. This is achieved by striking the die twice or thrice on the blank coin to get a good image of the die.

Before you purchase silver coins, make sure you check for the sign of authenticity that is present on the coin. Do look for the warranty card if there is any provided with it. Check if the weight of the silver is exactly one ounce or not.

General Investing

Gold Eagle Coins- a Numismatists Delight And a Great Investing Option

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Right from the days of yore, gold and silver coins have been of great importance because of the two metals’ high intrinsic value and also because of the coins’ fungibility. While the ancient Egyptians gave gold coins only as gifts, Greek kingdoms of the Iron Age minted such coins primarily for circulation. Silver coins were popularly used as money for circulation because of their fungibility, liquidity, and durability. In the recent times, gold and silver bullion coins, such as the gold eagle and silver eagle coins are being used by investors to hedge against risks arising from price changes and also for capital appreciation.

The American gold eagle and silver eagle are the United States’ official bullion coins. Buying these coins is an easy way to diversify investment portfolios. Their widespread acceptability by collectors and investors from all over the globe and guarantee of their metal content and purity by the United States government itself, makes them safe investing options. Gold and silver eagle coins are also of immense value to the numismatists. The rarer the coin, the greater will be its value. These have remained premium collector items and have always found a large number of interested buyers; to the extent that many rare coins have been auctioned to the tune of millions of dollars. They have also been sold as uncirculated proof coins to coin collectors.

Counterfeit gold and silver eagle coins are an inseparable and unfortunate aspect of coin collecting. Counterfeit gold eagle coins are rarer than silver eagle coins because of difficulty involved in making fake ones owing to the fact that gold is one of the heaviest metals. However, there are a number of ways to establish whether a coin is fake or not. Since gold is a soft metal, the simple bite test is an easy way to establish its originality. In case of silver eagle coin, one can keep in mind certain points like the weight of the coin (if underweight, then it is fake), relying on your gut feeling about the looks of the coin (if the looks of a coin don’t seem right, don’t go for it) , the surface of the silver coin (in case the coin is missing the typical silver sheen, do not consider it), and checking it under magnification can go a long way in avoiding buying a fake eagle coin.

Numismatists treasure them and the investors value them simply because they know that an investment in silver and gold eagle coins would assure them safety of their investments and security even if the world’s financial systems collapse.