A straightforward guideline is as follows when searching for bullion rather than actual gold: Look for a gold product that is listed in the financial section of a newspaper and has a price that is close to the gold spot price on the market. If the publication or Yahoo! According to the Finance website, the price of an ounce of gold has closed at $ 680, and you can purchase one for $ 700—a premium of 3%—for at least four ounces. If you're buying just one or two ounces or some of the most popular bullion coins, like American Eagles, you'll probably need to pay a little bit more. Large orders should anticipate a lower markup.) The premium reflects the numerous costs a gold dealer incurs in order to sell it to you, despite the fact that the transaction is probably unlikely to generate a profit. He or she might just be hoping that by offering you a good deal, you'll be more likely to buy from them again in the future, which is reasonable.
South African Krugerands typically have the lowest premium over the spot price of gold on the market, while American Eagles and Buffalos are among the most expensive bullion coins. Gold bars, on the other hand, are typically sold very close to that price. This is because they are the most sought-after in the United States, the world's largest retail market for the trading of bullion gold coins. China's Panda, Austria's Philarmonic, and Australia's Kangaroo gold coins are some of my favorites, and they can all be purchased for prices that are typically less than four percent higher than the market's raw gold prices. Choose the bullion coins you like best because they all cost about the same and are simple to buy and sell.
I try not to buy gold products from people over the Internet or from TV or mass-market advertisements. How rare or one-of-a-kind can something be that millions of readers can buy or watch on television? There is no need for further discussion!)I've heard a few stories about people who bought gold on Ebay and got scammed, either because a rare coin was wrongly graded or because the gold they got wasn't exactly what was advertised. Having said that, the large number of items for sale on Ebay suggests that a lot of gold is being traded there. But unless you have advice from someone who has sold and bought gold on Ebay successfully, I would only buy gold from a seasoned, reputable gold dealer.
Additionally, I generally steer clear of once-in-a-lifetime opportunities in precious metals. I truly hope you will fall in love with a gold coin or medal that a gold salesperson or website tells you is extremely valuable, such as one commemorating Mickey Mouse's birthday or the 60th anniversary of the end of World War II. Because if you don't and decide to sell it in a few years, you will probably hear the dreaded phrase from a coin shop buyer: melt. Coins, medals, and bars that aren't particularly sought-after in the market—the vast, physical marketplace where hundreds of different gold coins and other items are traded—will be purchased at melt, or solely on the basis of their gold content. If you bought an ounce coin for $ 782 (at a 15% premium for the once-in-a-lifetime opportunity) and decided to turn around and sell it, you would probably get $ 680 for it if gold was trading at $ 680 an ounce. less of a fee to transport the coin to the gold scrap shop, where the other memorable moments are forgotten. You would suffer a loss of at least $100.If you are purchasing gold as an investment, I believe this strategy makes sense, as I will discuss in the rare coin section: Unless you are Bill Gates, don't buy gold with the expectation that you, a family member, or heir will eventually want to sell it. You should try to buy gold in a form that is easy to sell, like a bullion gold American Eagle coin or a MS-64 $ 10 Liberty gold coin from the late 1800s. After reading Chapter 18 on rare coins, you will have a better understanding of what MS-64 means.)
Keep in mind that today's bullion coins are tomorrow's rare coins and that their value is higher when kept scratch-free in the box or sleeve in which they are received if you are purchasing new issues from the U.S. Mint or other mints around the world. You probably don't need to read this paragraph if you are wealthy and want to use gold coins as poker chips.)In general, a flawless coin is worth more than a damaged one, especially if it is certified to be nearly perfect. Despite the fact that the majority of precious metals coins minted in the last twenty years or less lack the “numismatic” value that would distinguish them from other bullion coins, it is important to keep in mind that a significant number of serious collectors in the United States—between 1.3 million and 1.8 million—are constantly building collections, so there will always be a demand for key year coins that may become scarce.
As a result, over time, some of the more valuable coins will appreciate more than others, but none will rise as much as the worthless ones.
Consider that the 1920 $10 Indian Head gold coins that Dr. Steven Duckor sold in March 2007 for $1,725,000 was once a bullion coin—not that you have 87 years of patience for that.
