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Beginners Guide to Buying Gold Coins in US and Canada.

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Gold is one of the commodities that features a storied history of being highly sought after. It was used to line the coffers of kingdom treasuries, to buy the supplies need to survive in the wilds to dig for more gold, and as ornamental and utility decoration for a number of cultures. No other material has had this kind of appeal over multiple cultures for thousands of years. The reasons are simple; it is not a metal that degrades easily, is fairly workable in a number of applications, and its look is synonymous with wealth and affluence.

As today’s markets find themselves in more turmoil, investors are once again turning their eyes to a staple of wealth that has stood for centuries. Gold investment for beginners does not have to be an overly stressful chore to decide whether or not it is the best course of action. Investing in physical gold may seem mysterious and bougie, but it offers practical benefits for wealth retention and diversification. In this article, we will provide essential tips for those starting their journey into gold ownership. By keeping the focus on simplicity and practicality, we aim to make the process more accessible to beginners.

Practical Tips for Investing in Physical Gold.

  • Understanding the Value of Gold: At present, an ounce of gold is valued at $1865, known as the spot price. When purchasing gold in any form, such as bars or coins, there will be a premium added to cover minting and retail costs. For this article, we will primarily discuss modern gold bullion in the form of coins, focusing on their simplicity and popularity.
  • Choosing the Right Gold Coins: In the United States, popular choices for gold coins are American Gold Eagles and Gold Buffalos, both minted by the US Mint. However, it may be more practical for investors outside the US to consider coins minted by their own country or region. Coins like Canadian Maple Leafs, Krugerrands, Philharmonics, Britannias, and Kangaroos are widely recognized and easily bought and sold. While the premiums on these coins may be lower, it’s important to consider the local buyer population and preferences when selling.
  • Understanding Premiums and Budgeting: Premiums represent the production and retail costs added to the spot price. One-ounce coins usually have a premium of around 6-7% above the spot price, while smaller coins tend to have higher premiums. The choice between larger or smaller coins depends on individual budget constraints and investment strategies. It’s advisable to ease into purchasing gold, especially for those with limited budgets, to maintain focus and consistency.
  • Selling Gold: When it comes to selling gold, local coin shops are often the quickest and easiest option. They tend to prefer regional coins due to higher buyer demand. While selling other recognized coins is still possible, the resale value may be slightly lower. Timing also plays a crucial role in the selling process, especially when dealing with larger quantities. It’s important to consider the potential price differences and the buy-to-sell spread when choosing the type of coins to invest in.

Is Gold a Safe Investment?

Many individuals that enter into gold investment think that it is a completely safe investment that bears no risk. All investments have risk. Investing in gold is not different in that regard. It can form a solid foundation for your overall plan. It is very likely to stand up to a number of economic factors as time wears on. However, it is still a commodity whose value is gauged on a market. That market can drop out in an extreme circumstance. That is exactly the reason that you should not invest everything into gold. Diversity helps create the cushions needed to avoid catastrophe.

Modern Bullion Gold Coins?

There are many different kinds of gold investments to be had. Anything from gold mining to virtual e-gold is slowly gaining in popularity. The two most popular kinds of investment are either in coins or bullion. The choice of what to invest in will largely depend on your own personal circumstances and what you actually intend to do with the investment. Bullion is a solid choice for high dollar or long-term investments that you have no interest in turning around soon. Coins provide an easy and effective way to shift the value around if need be. They can still be invested in en masse but are more usable as a fluid investment.

Old gold Coins?

There are gold coins that were minted under special circumstances in the past. They may be historical in nature and have a higher value than that of simply the gold. Modern coins are minted to simply provide the value of the metal. Investing into older or historic gold coins can be an appreciable venture but it will require more action on your end to protect. These kinds of coins typically require special storage practices to not only protect the integrity of the metal; but whatever details are present that make the coin more valuable than the metal.

These considerations should be some of the top ones for a person thinking of getting started in gold investment. We cannot stress the importance of not investing everything into one single commodity enough. Physical gold can provide the foundation to a robust portfolio. Once those goals are met, it can be expanded to include other aspects of gold or branch out into other venues. If the past thousands of years are any indication, gold will continue to be sought after long into the future. That puts it in an excellent position to really prop up your investments and secure your future. Investing in physical gold offers practical benefits for wealth retention and diversification. By understanding the basics, such as the spot price, premiums, and choosing the right coins, investors can make informed decisions. While local preferences and timing may affect the resale value, investing in widely recognized coins can provide a more straightforward selling experience. Remember, investing in physical gold is a long-term game, and it’s crucial to focus on buying and holding rather than being swayed by short-term market fluctuations.

2 responses to “Beginners Guide to Buying Gold Coins in US and Canada.”

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  1. madonna

    Before diving into buying gold, take your time to learn about different products. Visit coin and pawn shops to see gold coins and items, noting color variations and weights, especially with Krugerrands. Hold and inspect them with a jeweler’s loop for details like color variations and carat weights. Take a couple of months to explore without purchasing, saving up and familiarizing yourself with various gold products and their weights. Feeling the differences between gold and silver coins helps understand their weight-to-size ratio.

    Consider a 10x loop for examining coins—it’s easier to use than high-powered loops. Familiarize yourself with gold test kits and use a white test stone for clearer observations. Gain confidence by learning and testing before committing cash. Engage with shop personnel to refine preferences—Krugerrands differ from Gold Eagles or Chinese Pandas. Long-term investing requires informed decisions, so take time to be knowledgeable and comfortable. Stick to reliable shops rather than private sales until you’re well-versed.

    Reply
    1. Alexandre Laurent

      Absolutely madonna , let’s start with a heartfelt thank you for considering these options. First things first, it’s essential to be well-informed about what you have. Understanding both the gold content, especially in the case of older European gold which typically isn’t 24k, and the potential numismatic value such as rare dates or exceptional condition coins, is crucial.

      You’ve received a good suggestion about MAdonna ; it seems many have had positive experiences there. It’s advisable to research potential buyers there thoroughly. The platform offers a review system for buyers/sellers, and employing a trusted third party as a mediator is an option worth considering. Doing thorough homework here is key.

      Exploring Craigslist and Armslist can also be fruitful avenues. The latter, especially, given the common interest between firearm and precious metal owners. Meeting at a police station or another safe location is a wise move. Breaking up sales into smaller lots can reduce risk.

      Local coin shows can offer great opportunities too. Knowing the value you aim to get for each coin and engaging with vendors and patrons could be beneficial.

      For gauging worth, you can refer to sample price lists provided by Pacific Precious Metals, Atlanta Gold and Coin, and Golden Eagle Coin, particularly for non-numismatics. However, larger dealers might not display their sell prices publicly. While private sales might yield better results, the logistical ease of dealing with a local coin shop or sending the collection to a reputable online dealer for the entire collection might be worth considering.

      Despite the preference for private sales, it’s still worth exploring your Local Coin Shop (LCS) as they might offer a level of privacy beyond what you anticipate. It never hurts to check.

      Reply
Alexandre Laurentl is working in the jewelry and investment gold since 2002. Alexandre graduated from The Normandy School of Business and from the University of Perpignan a Bachelor of economics in 1995.

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