How to buy Gold Coins
If you know all the possible details and tricks how to make the best possible investment while buying gold coins you will collect a portfolio that you will enjoy for years. This article will present different ways of buying gold coins as well as it will show a range of opinions about doing that.
Gold Bullion Bars and Ingots
Most people think of gold as of large gold bars that are hidden deep down below the surface of the earth. Actually, gold bars can be found in totally different shapes and sizes to satisfy wants of different investors. Gold bullion Bars are sold by the troy ounce and are sold in common sizes of one troy ounce, 10 troy ounces or even larger sized gold bars. Most of gold dealers offer to sell these gold bars for a percentage over the loco price of gold. Of course, the smaller the bar is, the bigger the premium will have to be paid. Those who are the most interested in buying gold bullion bars are people or corporations who want to make a large investment in gold.
Bullion Gold Coins
Gold bullion are produced by countries and private entities. They resemble a round shaped coin. Although they look like coins they do not function as coins because they do not operate as a currency. Others are sometimes considered as coins because they contain some precious metals but are also not purposed for common circulation in a country’s economy. Gold bullion coins differ in size; starting as a small scruples as 1/25 troy ounce and finishing as five troy ounce sizes. There exist some new, enormously gigantic gold coins with a weight of a one troy ton of gold.
For those investors who are not seeking for coins with a numismatic value, the best solution will be to invest in gold bullion coins emitted by a pervading country or a respected private individual like: U.S. Gold Eagles, U.S. Gold Buffaloes, South African Krugerrands, Canadian Gold Maple Leafs and Australian Philharmonic gold bullion coins.
Common U.S. Gold Coins
Another way to invest in gold is to buy United States gold coins-only those which were minted in 1933 or earlier. Gold coins circulated freely in the US economy up until President Franklin D.Roosevelt backed up all gold coins that had no numismatic value. Many people saved the recalled coins and that is why they are available to the collectors for not much money. A good example is the $20 Liberty gold coin minted in Philadelphia in 1879. It has 0.9675 troy ounces of pure gold. If gold is worth like $1,800 per troy ounce than there is $1,741.50 worth of pure gold . An average circulated example is currently selling for approximately $1,865. This is a premium of $123.50 (or like 6,6%) over the loco price of gold. You may purchase common U.S. gold coins that have a value of $1, $2,50, $3,00, $5,00, $10,00, $20,00.
Modern U.S. Commemorative Gold Coins
Quite a big event took place in 1982 when the U.S. mint its commemorative coin program. 1984 is a date when the first coin presenting a commemoration of the Games of the XXIII Olympics in Los Angeles was minted. Contrary to common U.S. coins these don’t function as a currency and are not intended for circulation but they carry a high numismatic premium. As it is known, the USA still produces the commemorative gold coins which can be purchased directly from the United States Mint.
Foreign Gold Coins
If you know how to buy gold coins you shouldn’t be surprised to reveal some unexpected values. The U.S.A. is not the only country on the world where gold coins circulate in over the years. The prices can vary dramatically if taking into consideration the gold content of the coin, collector demand or supply available. Good examples of these coins include: Switzerland 20 Francs, Mexico 2 Pesos, Mexico 50 Pesos, Britain 5 Pound and Austria 100 Corona. If you want to buy some of these coins you should first buy a book on foreign coins in order to check the gold content as well as the current market values.
Rare U.S. Gold Coins
It is not a good idea to purchase these kind of gold coins if you are unsure how to buy them. There are quite a few U.S. gold coins which have very low mintages as well as the high collector demand. That’s why the numismatic premium is soaring over and above the intrinsic value of gold within the coin. For instance, the same $20 Liberty gold coin from 1879 minted in New Orleans has a market value of over $23,000. In addition, it has the same 0,9675 troy ounces of gold as the Philadelphian one.
Selecting a good dealer
If you’re more aware of the whole thing connected with ‘how to buy gold coins’ than you were for example one or two years ago, it’s high time to find a good coin dealer to buy gold coins from. Looking for an honest dealer is looking for a dealer who has got five key traits: ethics, reputation, size, guaranty and experience. To make sure that the partnership will go well you should also ask your dealer for some information about minimum amounts, accepted forms of payment and the time when you will be able to take ownership of your gold coins.
Types of Dealers to Stay Away from:
There are seven types of coin dealers that you should stay away from, such as:
*online dealers selling at big discounts
* pawnshops
*tv advertisements
*jewelry stores
* craigslist ads
*any online dealer who wants bank or cash wire transfer ONLY, and
* any dealer who has no physical store-only an e-mail address
What are my gold coins worth
If your gold coin is one of those that are really rare, it automatically increases in value especially if the one you own is from a limited collection it will increase in value quite satisfactorily. It will happen only if the condition of your coin is the same as at the very beginning when you bought it. Remember not to take them out of their specially prepared storage containers in order not to damage it, or when it comes to silver coins-tarnish it. You mustn’t clean them and keep them out of the sunlight.
Every person who collects gold coins should get a valuation done (at least yearly). The valuation is a good idea for insurance purposes. A collector may ask a coin dealer to do a valuation and give you a document that constitutes an official, writen result of the valuation.