Buying and Investing in Gold Coins
Investing in Gold is always the best thing to do because even when the world economies shake shiver, gold still prospers. Gold bullion coins will be sold in millions every week. When you buy gold coins of Canadian Maple Leaf and American Eagle, they contain high gold purity and the metal dealer who deals with precious metals can be easily bought and sell the gold.
Because of economic crisis, most of these investors are turning into ETFs or gold exchange-traded funds to redeem on gold’s rise. Barry Stuppler president and founder of Mint State Gold says that, currently, many individuals have been going away from them. He is also a popular precious metals dealer in Woodland, California.
You may be wondering why some ETFs do not hold the physical gold, as a replacement for the gold index. For instance, the CBOE GI (Gold Index) follows the cost of gold-mining companies. According to the Author of “Precious Metals Investing for Dummies Paul Mladjenovic, Gold ETFs may even buy and sell in gold futures contracts can be a perilous investment option.
That is why the author prefers gold coins. The price of 24-karat Maple Leaf, one-ounce will match spot price of gold approximately and benefited from a sudden rise between 2005 and 2011, when the gold price increased more than quadrupled. However, the investors are aware of the facts that what goes up sometime fall down quickly. Recently, the buy gold coins price has declined as well.
The negative aspect of gold coins:
As an investor, you must consider all aspects before investing hard earned cash in gold coins because even gold coins have negative aspects. Mladjenovic says that buy Gold coins are not intended for trading, he also advises the investors to hold the gold coins for three years.
Also, Stuppler says that the dealers generally do not use credit cards during gold purchases. The dealers may not allow except they have the cash in hand. So, he says, you must have a cashier’s check or bank wire transfer to pay for the gold coins.
Selling gold coins can be a very complicated task as you need to pack the coins in a bubble wrap to protect the coins when shipping them back. Also, to track the package, you can send it through Express Mail or Registered mail, or you can as well use services like UPS or FedEx. Also, the gold coins should be insured for their complete value.
Here you can find some tips for selling and buying gold coins:
– Choose North American Coins: Always choose American Eagle and Canadian Maple Leaf gold bullion coins as they are easy to sell and buy. 24-karat Maple Leaf gold coin rules outside the United States, whereas the 22-karat Eagle rules inside the US. The Eagle gold coin’s purity and content are assured by the U.S. Mint.
– Stuppler says, that the American Eagle gold coins can be used to put into the individual retirement accounts.
– Mladjenovic Says, the US Mint introduced a new gold coin called American Buffalo in the year 2006 to compete with the pure Maple Leaf. The American Buffalo 24 karats symbolizes the purest gold coin ever by the U.S. Mint, but this new coin is not sold and bought as often as the American eagle, and also, it is more expensive. Usually, most people are not so familiar with the American Buffalo as well.