When the world economies shake and shiver, gold will prosper. Bullion coins and bars, which sells by the millions every week, attract a lot of investors all over the world. Canadian Maple Leaf, gold Buffalo coins and American Eagle bullion coins have one of the highest purities among coinages and can be sold or bought easily through dealers of precious metals.
Following the recession and financial crisis of 2008, a lot of investors started to see the potential of ETFs or the gold exchange-traded funds, to take advantage of the rising price of gold. But in recent years, a lot of people have been moving away from exchange-traded funds.
But why? A lot of exchange-traded funds do not own the item they are selling, and instead, they do trading using the gold index. For example, the Chicago Board Options Exchange Gold Index can track the prices from mining companies.
Gold exchange-traded funds, trade it in their future contracts, making it a very risky investment, according to most precious metal investment experts. That is why a lot of experts prefer investing in bullion coinage. Prices on most 1-ounce, 24-karatlike the Maple Leaf matched the market price and enjoyed the steady rise in prices from 2005 to 2011 when prices this precious metal almost quadrupled.
But just like any investments, what goes up, must come down. There are times that the prices ofbullion coinages go down, as pricesdeclined.
The disadvantage of investing in gold coins
Before spending your hard-earned money, you should know and understand that investing in bullion coins also have disadvantages. One disadvantage of investing in bullion coins is, the price fluctuates unexpectedly. Bullioncoinages are not meant to be traded.
You need to hold on to them for at least three years minimum. Not only that, a lot of dealers don’t take credit cards as payment for gold purchases. They accept orders, but buyers need to pay in cash first. So, the most common payment buyers use to use bank transfer or cashier’s check to pay for it.
Selling bullion coins also mean that you need to exert extra effort to ship the currency back to the dealers in coin protectors and wrap them with bubble wrap. To track your package, you need to send it using registered express mail or thru post office or use courier services like UPS or FedEx. You also need to pay an insurance fee for your coins for their full value in case something terrible happens.
Tips on gold coins
You need to stick with bullioncoinages from North America like Canadian Maple leaf, Buffalo and American Eagle coinages. These three are the easiest to sell and buy. Outside the United States, the 24-karat Maple Leaf is the most popular coin.
(To know more about American Eagle gold, visit https://en.wikipedia.org/wiki/American_Gold_Eagle.)
Within the United States, Eagle and Buffalo rules. These are good investment; you can put it into IRAs or individual retirement accounts. Popular coin brands are also easier to sell, not like less popular brands like Vienna Philharmonic and South African Krugerrand. These kinds of coins are usually sold outside the United States.
To compete with the much purer currencies like, the United States mint introduced new coinages, the American Buffalo. It is a 24-karat coin that represents one of the purest bullioncoinages offered by the United States Mint.
But it’s not sold, and frequently bought like the American Eagle, and it is much expensive. A lot of people don’t know anything about American Buffalo. Bullion bars are worse than coinages. It is costlier than coins, and selling it is a challenge. It is also expensive to ship the bars back to the dealer.
If you are planning to buy bullioncurrencies, you need to make sure that you store them in a safe deposit box or your vault at home, rather than let the dealers save it for you. Physical possession of gold is the best way to avoid scams by dealers. Gold is one of the most expensive precious metals on the planet. Everyone wants to take advantage of people that possess bars or coins. You need to be careful, and you should know all the little things about gold investing.