Proof Gold Coins

You have probably heard the term "Proof" when used to describe gold and silver coins. In case you are not sure what that means, I want to shed a little light on what a proof coin is and why they are priced higher than similar non-proof coins.

First of all, let me tell you what the term proof is not. Proof is not considered as a coin grade like Mint State grades (MS-65, MS-63, etc.) or circulated grades such as AU, EF, VF and VG. It is used to refer to a method of manufacture. A proof coin stands out from regular coins because of its mirror-like finish. This look is accomplished by the use of special polished dies and planchets (the coin disk upon which the die imprints the design).

Proof gold coins make a nice addition to a gold investor's holdings once a number of regular gold bullion coins have been purchased.

Happy investing.

Gold Vending Machines

A German company is starting to introduce Gold Vending Machines in that country's airports, railway stations and shopping malls. These "Gold-To-Go" ATMs will be capable of dispensing 1-gram, 5-gram and 10 gram gold bars (there are approximately 31.103 grams in an ounce of gold) as well as gold Krugerrand coins.

They must be convinced that this "bringing the gold to the people" strategy will be a success as the company is planning to roll out 500 gold ATMs in Germany, Austria and Switzerland. It will be interesting to see if this works as the premium over spot gold they are charging for the 1-gram bar is reported to be 30 percent - ouch!

When you invest in gold, make sure you shop around to get the lowest premium possible (and it better not be anywhere near 30 percent).

Happy investing.

Counterfeit Gold Coins

At a recent major coin show in Long Beach, leading coin grading companies met to discuss the increase in counterfeit coins they are seeing in the marketplace. There are a few things you may want to know about counterfeit coins and how to protect yourself if you are investing in gold coins.

First of all, spotting counterfeit gold coins is not for amateurs. And it is doubtful if everyone calling himself or herself a professional coin dealer can spot every counterfeit coin (such as a gold-plated lead coin) they may come across. If you are investing in gold coins, especially the higher grades of numismatic and semi-numismatic coins, look for those that have been graded and slabbed by NGC or PCGS. Not only are they the best at spotting counterfeit coins, they guarantee their work.

Counterfeit gold coins don't look like their genuine counterparts. If you know what "real" Gold American Eagles, Canadian Maple Leafs, Krugerrands, etc. look like, you may be able to spot a counterfeit.

A great tool in spotting counterfeit coins is a scale that displays a coin's weight in grams or pennyweights. While a brass coin can look like the real thing, it won't pass the test on weight. Genuine coins will weigh in at their stated weight or very close to it. You can find out the weights of various coins at Fractional Gold Coins plus more pages on the Gold Investing Simplified site.

Another way to spot counterfeit gold coins is to inspect them with a magnifying glass or jeweler's loupe. Since gold is such a soft metal, the stamping machines in use at the various mints will produce sharp images on the coin. Counterfeit coins that are cast from a die will not have that crisp image and are a dead giveaway that a coin is fake.

I hope you found this discussion on counterfeit gold coins of value and, if investing in higher grades of gold coins, follow my advice on limiting your investments to NGC and PCGS graded and slabbed coins.

Happy investing.

Spot Gold - Know Before You Invest

One of the "tricks" unethical coin dealers use to increase their profits is to misquote the spot price of gold and silver. They may advertise low premiums on the coins they sell but after adding a little to the spot price, the premiums are higher than those of the honest coin dealers.

This may not be a big deal if you are only buying a coin or two. But if you are investing in a bag of silver (715 ounces) or several one-ounce gold coins, the amount you are overcharged could be significant. Your goal is to get as much gold (or silver) as you can with the money you have to invest.

The solution? Find out what the spot prices of gold and silver are just before you visit your local coin dealer or call that major dealer or shop online. You can do this on my Gold Investing Simplified home page or other online sources. But make sure you take this step before you invest.

Remember, information is power and when it comes to saving you money, it is power indeed.

Happy investing.