Have you caught gold fever? If you've decided that investing in the yellow metal is right for you, the next step is deciding what form of gold to purchase. For the average investor, buying gold bullion coins is a great idea. They are easy to handle and their value will never fall below the market, or spot, price of gold. This article examines some key tips to consider when purchasing gold coins as an investment.
U.S. and Canada
A lot of countries around the world produce gold bullion coins, coinage intended for purchase by investors and not meant for circulation. As a new investor, it's probably a good idea to stick with gold coins issued by the government of Canada and the United States. These coins, the American Eagle and the Maple Leaf, are well-known to gold dealers and you can buy and sell them easily. Purchasing coins that dealers are less familiar with might make selling your coins more difficult.
When you purchase a gold bullion coin, you will have to pay a premium to the dealer. The premium is that amount that you pay above the current price of gold. For example, if the market price of gold is $1000 per ounce, the dealer might offer an American Eagle 1 oz. coin at a price of $1050. The $50 premium represents the dealer's costs in obtaining the coin, as well as his profit from the sale.
You often have a choice of sizes when you purchase gold coins. For instance, the American Eagle coins comes in a 1-ounce, half-ounce, quarter-ounce, and one-tenth ounce sizes. The smaller sizes are less costly because they contain less gold. So, if you have a small budget to work with, you might prefer to buy smaller coins. One advantage of buying larger sized coins, however, is that they carry premiums that are a lower percentage of the market price.
Another thing to consider before making any gold bullion coin purchase is storage. You can, of course, store your them in your home, although they are vulnerable to theft. You also have the option of storing them in a safety deposit box at a bank. Yet another choice is to have the coins stored at a dedicated facility known as a depository.
Buying gold bullion coins from sites like http://www.rmcoin.com is a good way to protect yourself against any unexpected financial reverses. To learn more about this topic, contact an experienced gold dealer.
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