Factors To Consider When Buying Physical Gold
If you decide to buy physical gold, youll want to keep a few things in mind:
- Storage: Physical gold requires a secure storage location. While you can certainly keep your gold at home, many investors prefer a custodian. Make sure you research secure options for storing your gold before you buy it, and keep in mind that safe storage adds costs to your gold investment.
- Insurance: If you decide to store your gold at home, you should insure your gold to protect yourself against theft or natural disaster. This can add to the cost of your homeowners or renters insurance. And even if you dont keep your gold at home, youll want to check in on your storage providers insurance policy to determine how its protecting your investment.
- Manufacturer: Because youre making an investment, youll want to make sure youre buying from reputable sources that will help your purchases value grow over time. When buying gold, look for respected producers like Credit Suisse, the Perth Mint and the Royal Canadian Mint.
- Purity: The gold content in the coin, bar or piece of jewelry has a big impact on its value and worth as an investment tool. Ensure any gold you purchase as an investment has the purity level to help it stand the test of time. That means youre probably targeting gold items that are at least 91%, if not 99%, pure.
More About Bullion Coins
Once you have shortlisted bullion coins, it doesnt get any easier. The selection of gold bullion coins is plenty to perplex even a moderately-informed investor. The gold dealers that you approach to buy them do not make it any easier. In fact, many of them will lead you down the wrong path.
Before proceeding further, you need to understand that there are primarily two types of coins bullion and numismatic. The former is minted for investment with a small premium to cover its manufacturing costs.
On the other hand, numismatic coins are rare or collectible ones, aimed at collectors and speculators. Premium, markup, and transaction charges are dramatically high for these coins and do not follow any standard rule.
Another drawback is the difficulty in finding buyers for them. Collectible coins do not get any tax breaks and the no-confiscation tag attached to them is nothing but a lie. The expert advice would be to stay clear of numismatic coins if you are a serious investor.
So, now with the choice narrowed down, let us take a look at the best gold coins for investment.
Why Invest In Gold Through An Ifa
You can go it alone and invest in gold through an execution-only platform, in return for a small fee. However, this is only really an option if youre an experienced investor and confident with judging the gold price market.
But if this is your first foray into precious metals investing, you might prefer to go through an independent financial adviser . They will give you access to the market and can manage the whole process for you. Even more importantly, they can advise you on whether buying gold really is the best option for you, explore the alternatives with you, and help you decide how much to invest if you do choose to go ahead. And if you are interested in ethical investing, they can also explain the Environmental, Social and Governance pros and cons of each option.
If you found this article interesting, you might also find our article on pension vs property investments informative, too.
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Australian Kangaroo 1 Oz Gold Coin
A popular issue from the famed Kangaroo series of the well-respected Perth Mint, the one-troy ounce Australian Gold Nugget is minted with a fineness of .9999 . Featuring the countrys iconic animal in a different setting each year, the Australian Gold Kangaroo has a face value of A$100.
A profile of Queen Elizabeth II graces the obverse while a kangaroo image is on the reverse. First issued in 1986, the Australian Gold Kangaroo is also available in 1/20 oz, 1/10 oz, ¼ oz, ½ oz, 2 oz, 10 oz, and one kilo variants.
Advantages To Buying Gold Coins
Gold and other hard metals have always been a time-honored part of traditional investment plans. Heres why:
- Gold tends to go up when other investments decline, providing a stabilizing effect for your portfolio.
- Gold is a safeguard against inflation.
- You dont have to pay capital gains tax until you sell.
- Nobody must know you have it if that matters to you.
- In worst-case financial scenarios, such as massive currency devaluation, you can use gold and silver to buy and sell. That may sound crazy, but it has happened in other countries.
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Can We Ever Be Entirely Certain About Fakes And Forgeries
No, not even good delivery bullion is 100% certain not to have been tampered with.
However:-
Most of us are forced to rely on the last expert to handle our gold. When we sell sometimes decades after we bought we are presented with a difficult dilemma when the dealer goes into a back room to test our gold for authenticity.
Suppose they return saying its a fake. What then?
Finding Cheap Silver Bars
Finding cheap silver bars is a bit more difficult, since they are rarer than old silver coins and less easy to verify as genuine. However, both pawn shops and Ebay may offer some occasional bargains. You can also use word of mouth to search for silver bars, and offer to take them off the hands of those who own them at a reduced price, in exchange for not needing to go through the trouble of liquidating them a prospect that many people who are less savvy than you in the silver market will jump at. They will get ready cash, you will get silver at a discount, and everyone will be happy with the transaction.
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Acts As A Supplement To The Stock Market And Real Estate Investment
You must balance your investment by buying gold coins from the market as you invest in real estate and the stock market. Most of these investments come with many risks compared to investing in gold coins. Since gold rates will not drastically deteriorate like investing in real estate and the stock market, your investment in gold coins will be safeguarded in the future while providing a simple way to diversify your risk.
Design Background Of The Gold Eagle Series
The United States Mint chose a historic American coinage design for the American Gold Eagle. Augustus Saint-Gaudens was hand-picked by President Theodore Roosevelt in 1905 to help revitalize US gold coinage with a brilliant new design.
Saint-Gaudens crowning achievement was the Lady Liberty design that features Liberty in full-length figure, her hair and robe flowing freely in the breeze as she strides forward confidently from the nations capital. In her right and left hand are a torch for light, and an olive branch signifying peace all the things shell need to guide the nation toward a peaceful, if unknown, future.
His original design was used on the $20 Gold Double Eagle coin. In circulation from 1907 to 1933, it is considered the finest design on the greatest coin in American history. Saint-Gaudens himself never lived to see his design come to fruition on an American coin though, passing away due to complications from illness just months before the coins were released in 1907.
The reverse side of the coin features a family of nesting bald eagles, and was designed by Miley Busiek. In the image, a male bald eagle returns to the nest with branches in its talons. In the nest, a female is depicted standing vigilant guard over the young hatchlings in the nest. Busieks design was created in 1986, and is used exclusively on the American Gold Eagle.
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Chinese Panda 1 Oz Gold Coin
The Chinese Gold Panda coins have been issued by the Peoples Bank of China since 1982. Offering a fineness of .999, the Gold Panda features the Temple of Heaven on the obverse and images of the Giant Panda on the reverse. The Panda image is changed every year with a few exceptions.
The one-ounce Gold Panda coin has a value of 100 yuan. The coins are also available in the Panda series in 1/20 oz, 1/10 oz, ¼ oz, and ½ oz variants. Larger coins of 5 oz and 12 oz were also issued in some years. Unlike coins issued by the U.S. mints, the Panda coins do not carry mintmarks to identify their origin.
Bottom line
Investing in gold has always been a time-honored way of securing and retaining the worth of money. The aesthetically appealing gold coins help in bringing pleasure into the drab world of investing. Due to the same reason, gold coins are highly popular and much in demand, making them a very liquid asset.
Even the best of things retains its worth if it is had in a limited quantity. Do not allow the glitter of gold to bedazzle you. Even as financial experts recommend including gold in your portfolio, they also caution to limit the allocation to 10%.
In the backdrop of the economic and political uncertainties prevailing in todays global scene, it is imperative for investors to diversify their portfolio and add gold to their investment strategy. This would not only mitigate risks and volatility it would also bring in easy liquidity and tax benefits.
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Best Gold Coins To Buy
Gold coins are the ideal investment no matter what financial level youre starting at. A single round can be purchased for as little as $25, meaning everyone can get their start in the world of precious metals investing. Gold bullion bars are a big commitment and are probably too expensive for the beginner investor. Gold coins, on the other hand, are cheap, convenient, and easy to build a collection. With so many different mints around the world producing gold bullion coins, investors today have a variety of choices.
In this article, well tell you all about each of the most popular gold bullion coins you could buy. There are manyreasons to buy gold, but as a starting point, small valuable minted coins are the perfect entry point for investors. When it comes to gold, the most popular coin is the best choice as these coins are easier to buy and sell. Its better to stay away from less-well-known coins from smaller mints, as the market for these coins is much smaller. Selling off investment coins from less known mints could prove difficult. Read on to find out about all of the best gold coins to buy for investment.
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Gold Investments For The Long
CMI Gold & Silver Inc. is not in the business of predicting short-term price moves in the gold and silver markets. Yet we are confident that gold and silver prices will work their way higher over the long-run because of the financial state of affairs in the U.S.
As noted on this page, we recommend gold bullion coins that sell at small premiums over the value of their gold content, not collector or numismatic coins.
For readers interested in investing in gold, we encourage them to follow the links on this page for specific information about the various gold bullion coins available as gold investments.
After perusing the pages, please call if you have questions or would like to discuss gold as an investment. We take calls 7:00 a.m. to 5:00 p.m. MST, Mondays through Fridays. For still more information about doing business with us, visit our Doing Business With CMIGS page.
South African Gold Krugerrand
Since its introduction in 1967, the Krugerrand has carried a storied history. The distinctly colored coin is 91.67 percent gold and 8.33 percent copper. Its name is a combination of South Africa’s first president, Paul Kruger, and the Rand Refinery, which mints the coin.
Kruger’s presidency lasted from 1883 through 1900. While he was in office, South Africa saw the founding of the Durban Deep Mine, and the Witwatersrand Gold Rush. These events eventually led to the founding of Johannesburg, one of South Africa’s largest cities.
During the 1970s and 1980s, the Krugerrand was illegal to import into the United States due to the South African nation’s apartheid laws. Before this time, the United States was one of the Krugerrand’s largest markets, because U.S. citizens were unable to own gold bullion but could own foreign coins and bullion. At its height, the Kruggerand made up 90 percent of the global gold coin exchange.
Even today, the Gold Krugerrand is one of the most frequently traded gold coins in the world.
The face of this copper-tinted coin is that of President Paul Kruger in profile. He faces left, his long beard cascading down to his chest. The reverse side of the coin features a graceful springbok mid-leap. The springbok is South Africa’s national animal, as well as the name of the country’s rugby team.
Available in one-tenth-, quarter-, half-, and one-ounce coins, plus four-coin sets, the Krugerrand is a staple for many investors. It is also available in silver.
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Gold Coins Vs Gold Bars: When Is It Better To Choose Coins
Gold coins are ideal for investors that appreciate their historical value. If you would like your gold to be something beyond financial investment, probably even start your gold collection, then coins are for you.
Theres additional economic value to the historic value of gold coins that specialized investors or coin collectors are willing to pay a premium for.
Gold coins are minted in continuing annual series, which means that they usually increase in value over time since collectors that want to complete their collection pay increasingly more for the older coins.
Examples of these are the gold Britannia coin and the British gold Sovereign coin since new, annual versions of the coin are minted each year.
It is usually more difficult to quantify the value of gold coins against the live gold spot price. The value of the coins will rise and fall with the price of gold.
However, theres additional value to be found in their increased levels of a rarity if you are selling to coin collectors or investors that want to complete a series or find a particular year thats of importance to them.
This value will likely increase with time as it becomes harder to find coins from older years. The additional, numismatic value is hard to quantify and will likely vary over time as the tastes and targets of collectors change.
Gold American Eagle Coin
Available in one-tenth-ounce, quarter-ounce, half-ounce, and one-ounce coins, the American Gold Eagle should be at the top of your “must-have” list. It was designed and first minted in 1986 and has stood the test of time. The American government releases a limited number of these coins per year. You can purchase them as proofs, uncirculated coins, or proof sets.
The American Eagle contains 91.67 percent gold , 5.33 percent copper, and 3 percent silver. The U.S. Government guarantees the weight, content, and purity of these coins, making the American Eagle one of the most popular investment coins you can buy. They are easily valued and highly liquid.
While the spot price of gold determines the value of any investment coin, they also carry a legal tender value ranging from $50 for the one troy-ounce coin to $5 for the one-tenth-ounce piece. The American Eagle is also available in silver.
The coin’s face features a strong Lady Liberty, her hair tumbling in a brisk wind. She holds her torch high in her right hand and has an olive branch in her left. She stands before the Capitol building on a field of rays. Stars march around the outer edge of the coin. The face of the coin shows the year it was minted.
The reverse side holds a touching vignette of a family of eagles. The male furls his wings, preparing to land in his nest where his mate and their hatchling await. He holds an olive branch in his claws.
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What Are The Pros Of Investing In Silver Bullion
1. Silver can offer protection As mentioned, investors often flock to buy precious metals during times of turmoil. When political and economic uncertainty are rife, legal tender generally takes a backseat to assets like gold and silver. While both gold and silver bullion can be appealing to investors, the white metal tends to get overlooked in favor of individuals investing in gold, even though it plays the same role.
2. Its a tangible asset While cash, mining stocks, bonds and other financial products are accepted forms of wealth, they are essentially still digital promissory notes. For that reason, they are all vulnerable to depreciation due to actions like printing money. A troy ounce of silver bullion, on the other hand, is a finite tangible asset. That means that, although it is vulnerable to market fluctuations like other commodities, physical silver isnt likely to completely crash because of its inherent and real value. Market participants can buy bullion in different forms, such as silver coins or silver jewelry, or they can buy silver bullion bars.
Chinese Panda Gold Coin
The Chinese Gold Panda was China’s first gold coin and the third on the market after the American Eagle and the Canadian Maple Leaf.
Its obverse design changes yearly, spotlighting the Giant Panda in various poses. The Temple of Heaven sits on the reverse. The coin is .999 pure gold.
Initially available in the standard ounce weights, the Pandas moved to metric units in 2016. They are available in one-gram, three-gram, eight-gram, fifteen-gram, and thirty-gram coins as well as in sets.
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