Buying Gold and Silver Coins
There are two basic types of gold and silver coins: bullion coins and numismatic coins (collector coins).
Gold investors typically acquire gold bullion coins, as their prices are very transparent. Gold bullion coin prices are based on the market price of physical investment grade gold. Today’s gold bullion coins are typically 22k to 24k, having a 90% or higher level of gold content.
Numismatic gold coins are generally purchased by coin collectors and speculators. Rare coin values are subjective to many factors outside of the gold spot price. Numismatic coins have a significant role for the collector or speculator. They can provide the fulfillment of a valued collection and due to their potential for extreme volatility, they can also provide significant gain for the speculator.
II. The Best Gold or Silver Coins for Your Objectives
Choosing the best gold or silver coins for your investing objective will depend upon multiple factors including the importance of privacy, your geographic location, and premiums both on the buy and sell side.
Investors can choose from gold and silver bullion bars, rounds (unadorned coin-shaped pieces) or minted bullion coins. Bullion bars come in an assortment of sizes to suit the needs and means of every investor. The smallest bars weigh just one gram, while the largest weigh 400 ounces.
Gold and silver rounds are produced by the same private refiners, as well as some government mints, and are also available in a variety of sizes, typically ranging from one-tenth of an ounce to five ounces.
Minted bullion coins come in a far greater variety, being produced by most of the private refiners as well as a number of the world’s leading government mints. Examples of these include the American Gold Eagle, American Gold Buffalo, the Canadian Gold Maple Leaf, the South African Krugerrand, the Chinese Gold Panda and the Mexican Gold Libertad.
Specialty bullion “commemorative” coins are also available from both private and government mints, honoring everything from African wildlife to the spouses of American presidents.
One added note for coin buyers: If what you want is a true hedge against turmoil, inflation and a weakening dollar, stay away from “collectible” gold pieces.
While such coins are beautiful and their value will no doubt increase along with gold bullion, those values are subjective, they carry far higher premiums than bullion coins and they’re much harder to sell on short notice.
If you are considering converting an IRA into gold coins, gold bullion coins are a great choice for gold investors. The most popular gold bullion coins are American Gold Eagles followed by Canadian Gold Maple Leafs, however, many others are viable IRA coin/bar resources.
III. How to Safely Buy Gold & Silver Coins
Gold and silver coins can be bought in numerous ways, including but not limited to buying on online websites like eBay or directly from a national dealer like Fisher Precious Metals. Some investors buy gold coins locally at coin shops, while in some countries investors can buy gold coins directly from banks.
Almost every gold retail outlet has more than one payment option: Bank wire transfer, credit card, cash, postal money orders, checks, and PayPal are all but a few payment methods being used within the precious metals industry.
Always consider any differentiators that some gold coin dealers may have over others. The gold dealer with the lowest price doesn’t necessarily mean it is the best choice. At Fisher Precious Metals, we have highly-trained experts who can detect counterfeit products of any type. All of the gold coins and bars that we offer were manufactured by government- owned or well-known private mints, making these products even more resistant to tampering. The vast majority of coins and bars we sell are smaller in size, making them much more difficult and less profitable to counterfeit as well. Because of these three simple facts, you can be confident that the physical precious metals you purchase from Fisher Precious Metals are genuine.
A wise investor must take into account the value, not merely the price, of any investment decision. Value factors to consider with any source you might buy from are: Precious metals education, storage options, buyback policy and exit strategy consultation.
The most important rule, whether you’re buying gold bars, rounds or minted bullion coins – or any other physical metal is to deal only with a trustworthy dealer with proven experience and clearly stated policies and warranties.