Investing in Gold Coins 2011
Gold has been honored and valued for ages as a symbol of wealth. You can buy gold either in the form of gold coins, gold bars and other forms of the metal. Unlike the other forms of investments, gold does not pay you a dividend or create a source of income. But investing in gold is preferred by many, as gold serves as security in times of financial instability and offers a good return in terms of value enhancement. Here is some information on buying gold coins that can be useful for those planning to invest on gold.
- British Gold Sovereigns
- British Gold Britannias
- American Gold Eagle
- Canadian Maple Leaf
- Chinese Gold Panda
- South African Gold Krugerrands
- Israeli Gold Coins
- Mexican Pesos
- Australian Gold Lunars
Things to know about buying gold coins
Gold coins can be of various forms and weights. Proof gold coins are made predominantly for collectors and for some special occasions. Consequently the price range tends to be higher for these coins. The brilliant uncirculated gold coins are not found in abundance, and therefore have a value for scarcity. Investors should avoid these coins and opt for the common gold coins like the American Eagles, South African Krugerrands, British Britannia, Canadian Maples or Australian Nuggets. You can buy gold coins through the local mints of your country or alternatively from the gold coin dealers in your city or online. For more information read out history of gold coins article.
The price premium of gold coins that is bought from a dealer or a mint tends to vary between 3 percent to 15 percent over the spot price. It is ideal to invest on the cheapest kind of gold coins if your investment amount is small.
There can be significant variability in terms of the gold content of the coins as they vary in weight and shape. But only a specialist in the field or a gold dealer can identify the gold content accurately and confirm the purity of the coins.
Buying gold coins online
The internet is one of the best ways to buy gold coins these days. Reputed dealers generally have comprehensive websites to provide users with all sorts of information and help in making the right purchase. The dealers make money when the customers come back to them for future purchase of gold coins as well. Hence the dealers are keen to retain the customers by building good reputation and rapport. You are likely to get pure products and an easy interface to work in case of reputed online dealers. But the ideal thing will be to find a dealer who is ready to buy back the gold coins from you in future, if the need arises.
Tips to choose the best online dealers
You should keep certain criteria in mind so that you choose the right online dealer. It is better to choose an online dealer who has been into the trade for at least five years. The more experienced the dealer is, the better are the chances of getting the desired products. It is better to avoid the new companies that spring up now and then when the market rises but disappear during a drop in the market. Choose a company that has stayed in the business irrespective of the fluctuations that take place in the gold market.
Another thing to remember while choosing an online dealer is that a reputed gold coin dealer will have the address of his or her shop mentioned on the website. It is better to avoid those who don’t have a physical addresses. It is also important to check the credentials a dealer is able to offer to substantiate the worthiness of the product he sells. You can check the associations the dealer is registered with, such as coin associations or the Better Business Bureau.
You should also look for an online dealer who has sound knowledge about how the market operates. A knowledgeable dealer would be able to suggest you the best coins you can buy rather than selling you just about anything.
If you want to make a modest investment in gold, buying gold coins is simply the best option. But make sure you buy from the right place so that you end up owning high quality coins that will appreciate in value and give you a good return.