Gold Investing - Cash4Gold Lawsuit

I just finished viewing a video about the class-action lawsuit against Cash4Gold. Whether this lawsuit is successful or not, I think it is good news to bring more attention to the firms that advertise "send us your gold". There have evidently been too many people getting ripped off by some of these firms. Whether Cash4Gold was one, I can only relate my experience.

On my web site, I dedicated a page to my experience selling one piece of scrap gold as a test of how one of these firms works. That firm was Cash4Gold. You can read about it at Sell Scrap Gold

To recap my experience, it took them 12 days and an E-mail from me before they responded. Then I received a check for approximately 14.4% of what the piece (a 10k gold ring) was worth at the time. I said NO. My second E-mail asked for an explanation of their "logic" at which time they offered me 32% of the piece's worth. I said NO. The ring was returned to me 44 days after I had sent it in.

I had heard that Cash4Gold had improved their operation after my experience. Evidently not enough for some customers. Seller beware!

American Eagle Coins Update

Well, it appears the webmaster for the U.S. Mint is back on duty. That is, new totals have been posted for both Gold American Eagles and Silver American Eagles.

As of today, January 25th, a total of 85,000 one-ounce Gold American Eagles have been produced. The numbers for fractional Gold Eagles are still showing a big fat zero so who knows when that program will start up again. If you remember, December of 2009 was the only month the fractional Gold Eagles were minted for the entire year and they were small numbers at that.

The big news is Silver American Eagles which are showing 3,592,500 produced so far in January. This is a huge number which shows the pent-up demand for the "poor man's gold". At this rate, the number of Silver Eagles minted in 2010 will far surpass 2009's total of 28,766,500.

If you are an investor of Silver American Eagles, I hope you are shopping around for the best price. It is surprising the difference in premiums being charged by various dealers, both large and small. Just be careful out there and make sure you get the most metal for your money.

Gold @ $1150 Per Troy Ounce

Gold continues its impressive climb, today surpassing $1150 before dropping back a bit. Is investing in gold out of your reach at these prices? Don't forget the "Poor Man's Gold". I am talking about silver which is at $18.54 as I write this.

When someone mentions investing in silver, many people think of Silver American Eagles. The U.S. Mint has struck 25,006,500 year-to-date (as of yesterday) just to give you an idea how popular they are. Premiums over the spot price are up too. But don't forget pre-1965 U.S. Silver coins which are 90 percent silver.

Circulated U.S. silver dollars contain .7650 troy ounces of silver, half-dollars contain .3575 ounces of silver, quarters contain .1788 ounces of silver and dimes contain .0715 ounces of silver (14 dimes equal about one ounce of silver). This information should help you determine reasonable prices to pay for these coins when you know the current spot price of silver.

Gold Investing - Gold Closing In On $1100

In case you missed the news, spot gold closed at $1084.50 today even with a strengthening U.S. dollar. There are many predictions on how high gold will be by year end but it looks like it will leave the 2008 year end spot price of $885.50 in the dust.

The interest in owning gold bullion coins is gathering strength too. The U.S. Mint reported a total of 115,500 American Gold Eagles were struck in October which bring the year-to-date total of gold eagles to 1,069,500. Silver eagles had impressive numbers too - 2,939,000 for October and 23,406,500 year-to-date.

I hope you are the proud owner of some of these gold and silver coins as the picture keeps looking better and better.

Happy investing.

It's Back! The American Gold Buffalo

Starting tomorrow, October 22nd, the American Gold Buffalo will again be available for purchase. As you may know, production of this popular 24 karat gold coin was stopped late last year when the U. S. Mint couldn't keep up with the demand for U. S. gold coins.

The American Gold Buffalo is the first .9999 fine gold coin struck by the U. S. Mint beginning in 2006. They can be purchased from the Mint directly or from dealers who are making them available for their customers. Expect to pay a minimum 6% premium over the spot price of gold which could easily go up a few percentage points depending on demand.

If you invest in these beautiful gold coins, follow the advice I gave you in Basic Gold Investing about handling your coins. Gold is a soft metal and easily scratched or nicked so always handle your coins, especially pure gold coins, by the edges only.

Gold Price Reaches New High

Have you heard? Gold posted a new high yesterday of $1045 per ounce then fell back just a bit. This took out the previous high set on March 17, 2008. This 18+ months of consolidation has added great strength to the next move up.

Some experts say look for a large spike up in the next three to six months. How high is uncertain but don't be surprised to see another 30 percent or more. If you have been waiting to invest, you may want to seriously consider this as the time.

Gold Investing and IRAs

As you may know, it is possible to open a precious metals Individual Retirement Account (IRA) or invest in certain precious metals for an existing IRA. This idea is being promoted as a way to invest in precious metals with pre-tax dollars.

Although this sounds very attractive, you may want to read this Precious Metals IRA article before deciding to go this route. I don't necessarily agree with his views but it makes for an interesting read and he does bring up some valid points on why you may (or may not) want to pursue a precious metals IRA.

Happy Investing.

$20 Liberty Types 1, 2, 3

If you feel you have a firm investment foundation in gold bullion coins, you may have been looking at $20 Liberty Head Gold Double Eagles for a possible investment. If so, you should become familiar with the three types of $20 Libertys.

Type 1 $20 Libertys were minted from 1849 to 1866 and are referred to as "no motto" Liberties since they do not contain the motto "IN GOD WE TRUST". They tend to fetch a higher price than the Type 2s and Type 3s except in the higher grades.

Type 2 Libertys were minted from 1866 to 1876, contain the motto "IN GOD WE TRUST" and, like the Type 1, the bottom of the reverse side of the coin has "TWENTY D." stamped into it. Type 2 Libertys are worth a little less than Type 1s until Mint State 63 (MS63) at which point they become much more valuable than either Type 1s or Type 3s. In fact, at present prices the MS65 Type 2 Liberty is worth approximately 14 times more than the Type 1 and (approximately) 30 times more than the Type 3.

Type 3 Libertys were minted from 1877 to 1907, contain the motto "IN GOD WE TRUST" and the bottom of the reverse side has "TWENTY DOLLARS" stamped into it. Type 3 Libertys are consistently lower in price than the Type 1 and Type 2 Libertys.

Happy Investing.

Gold Investing - Other Gold Markings

In my article on Gold Weights and Measures, I mention the Karatage system for determining the purity of a gold item such as jewelry. If an item is marked 24K, it is pure gold. If you see 12K, it is 50 % gold mixed with some other metal(s).

If you have gone through your items that may contain gold, you may have seen other markings that are not as well known. Let me explain a few of the more common ones you may see.

R. G. P. - These initials stand for Rolled Gold Plate

H. G. E. - This means Heavy Gold Electroplated

G. F. - Means Gold Filled

Unfortunately, items containing these markings contain very little gold as they indicate a thin sheet of gold covering some sort of cheap metal. You would be lucky to find a dealer interested in these types of items. If you are thinking of purchasing an item with one of the above markings, be aware of the tiny amount of gold they actually contain.

Happy investing.

Investing In Gold Bars (and Ingots)

Gold investors in the U.S. tend to favor gold coins over gold bars and ingots which differs from gold investors in other parts of the world. Gold bars are highly prized elsewhere as an investment and maybe you want to look at a modest investment in them.

Gold bars come in various sizes to fit most any investing budget. The smallest size is just one gram followed by 2.5 grams, 5 grams, 10 grams, 20 grams, 31.103 grams (1 Troy ounce), 50 grams and 100 grams. Gold bars have a hallmark stamped on them which states the producer, size and purity of the gold bar - typically 999.9 fine gold.

If you are looking for a variety in your gold investments, gold bars may be right for you.

Happy investing.

Gold Coins and Bag Marks

You would think that gold coins that have never been in circulation would have no marks on them. It is true they wouldn't have wear marks like circulated coins do. But, unless they have received special handling at the mint, there is a good chance they will have bag marks otherwise known as contact marks.

So just what are bag marks? They are marks mainly caused by the coins being dropped in sacks (along with several other coins) at the mint and the handling of these bags as they transported to one or more destinations. The coins coming into contact with other coins can cause minor nicks or other flaws that mar the surface of the coin. Large gold coins are especially prone to bag marks since gold is such a soft metal.

There are several grades of uncirculated coins. An MS-70 coin (a perfect coin) would have no bag marks - probably due to special handling of the coin. Any grade below that would have some sort of flaw with the lowest uncirculated grade of MS-60 having the most serious of the bag marks.

Happy investing.

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.

Gold Moving Toward $1000 Again

In case you haven't tracked the price of gold lately, it has been moving up nicely and is closing in on $1000 per ounce again. Last week, gold had some great sessions due in no small part to problems with a weakening dollar and troubles with U.S. Treasury bonds.

In the last 30 days, gold has gained almost $100 per ounce ($96.80 to be exact). When you consider that gold was priced at $255 per ounce in February of 2001, that is quite a run with almost a quadruple in price. A very recent article stated one expert's predication of $1400 per ounce in the next six months.

If investing in gold is getting a little too pricey for you, don't forget the "poor man's gold" - silver coins and bars. Silver has been having a heyday too lately and is knocking on the door of $16.00 per ounce. If you have yet to start investing in precious metals, seriously consider taking that first step now. Several experts say this ballgame isn't even in the middle innings yet.

Happy investing!

Categories of Gold Bullion Coins

In my article on Basic Gold Investing, I recommend that investors start with gold bullion coins. Not discussed are the three categories I assign to gold bullion coins which you may find useful. These categories are:

1. The most common gold bullion coins that are universally recognized and accepted by coin dealers. In this category, I include Gold American Eagles, Gold Canadian Maple Leafs, South African Krugerrands, American Gold Buffalos, Austrian Philharmonics, Chinese Pandas, Australian Nuggets, Mexican 50 Pesos and maybe one or two others;

2. Not as common gold coins as those above but still recognized by coin dealers and readily tradeable (liquid). This would include one or more denominations of The Angel (Isle of Man), Hungarian Korona, French Twenty Franc "Rooster", Dutch Guilder, Austrian Corona, British Sovereign, German Mark, Italian Lira, Russian Ruble and Swiss Franc;

3. Lesser known gold coins which coin dealers are hesitant to accept because of low demand by investors and low acceptance by other dealers.

When first starting out with your gold investing, concentrate on those coins in the first category. There is much less chance you will make a bad decision with any of the gold coins in this top category.

Happy Investing!

Gold Bullion Coins versus Numismatic Coins

In the first article posted on the Gold Investing Simplified web site, Basic Gold Investing, I recommended you start with gold bullion coins. Assuming you are a gold investor (for whom I created this blog for) and not a gold coin collector, that advice still stands.

Pictured above is a $20 Liberty Double Eagle. In its higher Mint State grades, this is considered a numismatic coin and can fetch several thousand dollars. If you invest in this coin, it is obvious the price is not based on the gold content (currently around $900) but on the coin itself. The price for numismatic coins is determined by the particular strike, scarcity, condition (or state of preservation) and demand.

Investing in numismatic coins is not for casual investors. If you are investing on your own, stick with gold bullion coins. If you have the finances and are ready to move up to numismatic gold coins, work with a reputable dealer that has been in business for many years. It will greatly lessen your chances of making bad investments.

Happy investing!

Gold Coin Grading & Certification

On my first visit to the local coin shop (that opened up this spring), I noticed a coin in a plain cellophane and cardboard coin holder marked MS66. I asked the owner who graded that coin an MS66 and he said "I did. I grade coins too". I was more than a little surprised.

When you start considering the purchase of coins in the higher MS (or Mint State) grades, you must be very careful . One grader of coins may rate a coin MS66 while another may grade the same coin at MS64 and money, sometimes lots of money, can be lost. Let me give you an extreme example...

A 1907 St. Gaudens High Relief Gold Double Eagle graded MS64 is currently worth approximately $26,000. That same coin graded MS65 is worth approximately $46,000. So let's say you bought that coin as an MS65 from a dealer who a few years later went out of business. When you go to sell the coin to another dealer, he says "Nope, in my opinion this should only be MS64 and I will pay you what an MS 64 is worth". That is how investors can lose lots of money.

The solution? When purchasing coins from dealers in the higher MS grades, make sure they are graded and "slabbed" (encased in plastic) by either PCGS (Professional Coin Grading Service) or NGC (Numismatic Guarantee Corporation). This is insurance that the quality of coins you think you invested in are of that quality.

I will talk more about these two organizations in another post.

Happy investing!

Gold American Eagles Still Soaring

In an update to my article on Gold American Eagles, I mentioned that 710,000 Gold Eagles were sold in 2008 versus 140,000 the year before. Further numbers show interest is still strong in this popular gold bullion coin.

In March 2009 136,500 Gold Eagles were sold compared to 113,500 in February 2009 (Silver American Eagle sales totaled 3,132,000 in March!). But there is something missing from these totals - Fractional Gold Coins. All Gold Eagles sold were one-ounce coins.

If you are at all familiar with Gold American Eagles (from my article or elsewhere) you know that they are normally produced in half-ounce, quarter-ounce and tenth-ounce sizes also. But the U.S. Mint has suspended their production and will not say when production will resume.

If you have been investing in Fractional Gold Eagles, you know the premiums are higher than one-ounce coins (the smaller the coin, the greater the premium). If this continues, expect the premium on these gold coins to rise farther still.

Happy Investing!

Welcome To Gold Investing Simplified's Blog

Hello and welcome. I hope you visit often and find information you can use when deciding what type of gold you want to invest in. Look for one or two posts a week from me as I look for good information to share with you.