Buying Gold Coins

In this day and age, the value of gold seems to be sky-rocketing and $52 billion worth of gold was sold last year for investment purposes. Keeping that in mind, I shall be providing some pointers on this matter and what to keep in mind when you are buying gold bullions or gold coins.

1) Don’t pay too muchThis is pretty self-explanatory. If you’re investing in gold, keep in mind that gold is a commodity, and it’s up to you to make sure you’re not overpaying. What I mean is, remember your purpose for buying the gold in the first place- investing.

2) Historical value- Watch out for the people who are dealing gold. They offer gold coins or bullions, and what they then try to do is sell customers coins with historical, or numismatic, value. But the fact is, these coins usually have little or no extra value above their melt value – the value of the coin if it were melted and sold as mere metal.

3) Proof coins- Proof coins are special editions struck for collectors. The dyes used to make them are polished finely, and they can result in particularly pretty coins possessing mirror finishes. Proof editions are usually valued more highly than regular coins but only by collectors. The premium paid for proof coins can disappear. So, for investment purposes, regular gold coins should be used.

4) Buying coins safely- Several countries allows gold to be purchased directly from the banks and in countries which do not, you can always buy gold coins online from sites such as Amazon and e-Bay.  GoldSilver.com is also a reliable site where you can purchase gold safely. Stick with North American coins. The Canadian Maple Leaf and American Eagle gold bullion coins are the easiest to buy and sell. Do keep in mind that all that glitters isn’t gold. There are several scams out there which you must watch out for.

5) Buy 1-ounce coins. American Eagle coins are issued in four denominations: 1-ounce, half-ounce, one-quarter ounce and one-tenth ounce. But these other fractional coins carry higher premiums and they are also above spot prices than the 1-ounce versions. So, it’s best to stick with 1-ounce coins.

6) Gold – stable store of value? No. It’s mythical to believe that gold is a constant store of value. Just like anything else the value of gold is determined by supply and demand.

7) What percentage of my current assets should I invest in gold? The answer for this is fixed, but a general rule is 10% to 30%. How high you go between 10% and 30% depends completely up to you and upon how concerned you are about the current financial, political and economic situations and hardships. 

8) How is good and bad gold distinguished? The site which you are purchasing from, go to the comment section and see the complaints which lodged against it and how their complaints were handled. A consistent record of complaints could serve as a warning sign even if the company has managed to keep an A+ rating. This is a simple and straightforward step every first-time investor should take, but it is amazing how many people ignore it.

9) Never break the law. When it comes to gold the law holds true. If you try to cheat the law, the law will get its way with you. If anything illegal is associated with your gold, they can and will take away all of your gold.

10) Purchase silver first. Before investing a ton of money on gold, buy silver first. This will allow you to evaluate all the risks and give you an idea on how to invest properly.

And that concludes it. These are 10 things which you must know about buying gold coins or bullions.