Buying Gold Coins

There are many reasons why investing in gold coins is a good idea. First of all, gold has always been considered valuable and always will be. It has an intrinsic work that is not dependent on market conditions or a country’s financial state. In fact, turbulent financial conditions generally only increase its value. Given this fact, it is not hard to see why well known investors and even large countries such as China have opted to purchase large quantities of this precious metal.

South African KrugerrandThere are numerous ways in which a person can buy gold. However, those who are serious about investing in this metal will avoid gold jewelry, antiques and collectible items. Such items are indeed valuable but their worth is determined by factors other than how much gold they contain. Such factors include age, place of origin and the intricacy of the item in question.

The best gold investment options are bars, coins and rounds. Following is a detailed overview of what buying gold coins involves as well as how these should be stored.

What are the Options?

Gold coins are made by just about every country across the globe. The coins are made using yellow gold and come in various weights and sizes. A person can purchase the coins on an individual basis or at a bulk rate.

Some coins purchased by investors are known as bullion coins and have never been used as legal tender, even though the name and quantity of a particular currency may be imprinted on the coins.

American EaglesFactors to Consider When Choosing Coins to Purchase

There are various factors that should be considered when determining which coins to purchase. Those who want coins that can be easily sold when need be will want to purchase coins that are well known on an international level.

The South African Krugerrand, Canadian Maple Leaf and United States Gold Eagle coins are some of the best known coins on the market and it is not hard to find an authorized dealer who sells and buys these coins.

If the coins are being bought for a self directed IRA, then a person should be aware that IRS regulations stipulate that all permissible coins must have a purity level of at least 95%. While most gold coins do have this purity level or even higher, there are some coins that have a purity level ranging from 90% to 95% and so would not be suitable for placement in an IRA.

Those who intend to store the coins at home should choose small, relatively affordable gold coins. The smaller the coins are, the easier they will be to store in a hidden, secure location. Furthermore, those who anticipate a widespread future economic collapse will want to store small coins that can easily be traded for food and necessities should the need arise.

Finding an Authorized Dealer

Once a person has decided which coins to purchase, it is very important to find an authorized dealer who can prove that all the coins for sale are authentic. Unfortunately, there are unscrupulous dealers, especially on the internet, and some would be investors have been scammed by such dealers.

If the coins are being placed in an IRA account, then a person will need to co-ordinate the purchase with the account custodian. The account custodian will most likely know of a number of authorized gold coin dealers and so can make a recommendation to clients regarding which one to work with. At the same time, it is entirely up to the client to determine where to purchase the coins, even if the custodian is the one who has to make the actual purchase with the client’s money.


Price of GoldWhen to Buy Gold

Knowing when to buy gold is very important. While it always has been and always will be considered valuable, the price per ounce does vary greatly and there are times when it would be wise to wait on buying gold until the price goes down a bit.

Keeping tabs on precious metal market conditions and talking with an experienced broker are two good ways to determine when to purchase gold coins, bars and/or rounds.

Gold vs. Other Precious Metals

It should be noted that gold is not the only or even necessarily always the best precious metal to invest in. Many people who invest in gold have also found that investing in more than one valuable metal is a good idea. Other popular precious metal investment options include sterling silver, palladium and platinum. Silver, like gold, is made into bullion coins of various sizes.

The value of any given metal depends on factors such as widespread (or lack of widespread) availability, market stability and popularity. However, it should be noted that all precious metals have intrinsic value and are suitable investment options for those who are looking for something safe to invest in.

Investing in gold provides a person with a solid, safe investment that is almost guaranteed to rise in value as the years go by. While paper currency is relatively new, gold has been around for thousands of years. It cannot be printed or manufactured and so will not lose its inherent worth. Gold is now available in many forms; the most common investment options include bars, bullion coins and rounds.

While buying gold is definitely a good idea, it is wise to do some research to determine how much gold to buy, when to buy it and what form of gold would be the most suitable. Choosing an appropriate form of storage for the purchased gold is also very important. Anyone who is investing in the gold market should do so carefully and be sure that he or she is getting the best possible deal.

Leave a Reply