Basic Gold Investing
you interested in knowing more about gold investments but have
never bought gold before and are not sure where to start?
answered YES, then read on - this article was written for you.
Free & Useful Gold Investment Advice
You won't find a sales pitch
for buying gold from me here since I no longer sell precious
metals. I want you to
benefit from my experience in selling gold and silver
for one of the oldest, most reputable precious metal dealers in
In this article (and in my investing in gold video) I discuss some of
the most popular and recognized gold coins you can invest in. Just keep in mind
that only you can decide if investing in these gold coins is
right for you. I take no responsibility for your gold investment
With that said, let's begin...
Basic Gold Investing-Gold Bullion Coins
If you are just starting out
with gold investments, I recommend investing in gold
bullion first. Gold bullion has the least premium over
the spot price (or melt value) of gold at the time of your
purchase. So it is the least expensive way to start acquiring
gold. Gold bullion comes in coin or bar form with coins more
popular in the U. S.
top gold bullion recommendation is the Gold American Eagle. First
issued in 1986 by the Philadelphia and West Point Mints, Gold
Eagles are the most popular gold bullion coins in the U. S. Each
coin is 22-karat gold and has an image of Lady Liberty on the
obverse (front) as designed by Augustus Saint-Gaudens. You
can see this image on the left. The coin's reverse image (at
right) is a Nest of Eagles designed by Ms. Miley Busiek. Gold
Eagles are backed by the U. S. government for content and purity
and are widely accepted worldwide making them very liquid.
American Eagle gold bullion coins can be purchased in four
different denominations: one ounce with a $50 face value;
half-ounce with a $25 face value; quarter-ounce with a face value
of $10; and tenth-ounce with a $5 face value. You will pay more of
a premium over spot gold for the half, quarter and tenth-ounce
coins than the one ounce coin. I will talk more about premiums
2. Gold Canadian Maple Leaf
second bullion recommendation is from our friends to the north -
the Gold Canadian Maple Leaf. Produced by the Royal Canadian Mint
starting in 1979, these beautiful 24 karat gold coins are 99.99%
pure gold (production of 99.999% pure gold Maple Leaf coins began
in 2007). The Gold Maple Leaf has an image of Great Britain's
Queen Elizabeth II on the obverse side. The coin's reverse image
(at right) is that of a maple leaf - Canada's national symbol.
Gold Maple Leaf coins are guaranteed by the Government of Canada
for their content/purity. They are as widely recognized and
accepted as the U.S. Gold Eagle. Gold Maple Leaf bullion coins can
be purchased in the following sizes: one ounce, face value of 50
Canadian dollars; half-ounce, face value of 20 Canadian dollars;
quarter-ounce, face value of 10 Canadian dollars; and tenth-ounce,
face value of 5 Canadian dollars. Premiums over spot gold are
similar to American Gold Eagles.
Let me caution you
if you decide to invest in Gold Canadian Maple Leaf coins. These
coins are pure gold which is a soft metal. As such, they are
easily scratched or nicked if you are not careful in handling
them. Always handle your coins by the edges only (regardless of
what gold coin it is) and be especially careful handling your Gold
Maple Leaf coins.
third gold bullion recommendation is the South African Krugerrand.
Produced by the South African Mint beginning in 1967, this coin
gets its name from Paul Kruger, the last president of the Republic
of South Africa, and the "rand", the monetary unit of South
Africa. The Krugerrand is alloyed with copper (1/12 copper, 11/12
pure gold) resulting in a 22-karat coin. They are more durable and
scratch-resistant than pure gold coins. The coin's obverse side
has the image of Paul Kruger. The reverse (at right) is that of a
springbok antelope, one of South Africa's national symbols.
South African Krugerrands are as internationally recognized and
accepted today as the Gold Eagle and the Gold Maple Leaf. In the
mid-1980's, the U.S. banned the importation of Krugerrands as part
of the anti-South African boycott (Krugerrands already in the U.
S. were allowed to continue being traded). Because of this,
Krugerrands lost some of their luster (no pun intended). As a
result, these coins tended to have a lower premium until the
recent rise in gold interest again. Krugerrands also come in half,
quarter and tenth-ounce sizes.
Just a few words about premiums....
Premiums for the above gold bullion coins are based on popularity
(demand), the dealers' profit goals and other factors. Prices can
vary widely from dealer to dealer so it pays to shop around. The
current premium for a Gold Eagle, Maple Leaf and/or Krugerrand
from a reputable dealer is currently between 5% to 10%. For Fractional Gold Coins (half-ounce,
quarter-ounce, etc.) expect a higher premium.
When Buying Gold Coins - Buyer
Now that you have a basic
knowledge of popular gold bullion coins to invest in, you are
almost ready to start shopping. But before you do, let me just
say that when the price of gold gets high, precious metals
dealers come "out of the woodwork".
must be careful when selecting a dealer. Look for one
or two that have been in business for some years, then check
them out with the Better Business Bureau. And be sure to get the
most current spot
price of gold before you shop. You can find it on the Gold Investing
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