When world economies fail, gold continues to prosper. Gold bullion coins sell in the millions every week, alluring investors to purchase gold. If you’re a first-time gold buyer, we’ve put together a couple of handy tips to consider before you make that investment.
North American Coins Are a Good Choice
The American Eagle and Canadian Maple Leafe gold coins are very easy to both buy and also to sell. But, the American Eagle’s gold content along with its purity has been guaranteed by the U.S. Mint and these coins may even be put into retirement accounts.
What’s more, the more widely used gold coins are far easier sell than, for example, the Austrian Vienna Philharmonic coins or the South African Krugerrand.
In comparison, gold bars are costly, typically trading in 10-ounce amounts, but they can be difficult to sell and expensive to ship around.
If you choose to invest in gold coins, firstly, make sure that you purchase from reputable gold buyers in Adelaide, and secondly, store them in a home safe or safety deposit box. Physical possession is usually best if you want to avoid dealer scams.
Compare Prices
Typically, a Mint will not sell coins directly, but reputable dealers will. If it’s your first time buying gold, be sure to compare prices among dealers. This is pretty easy to do since coins sell at a premium above gold’s sport price. Turn to the internet to find the spot price. The best thing to do is aim for the lowest possible price and try to avoid buying gold on sites like eBay where you risk getting pulled into an unnecessary and costly bidding war.
Invest in 1-Ounce Coins
Typically, gold coins are issued in four main denominations, mainly, 1-ounce, half an ounce, a quarter of an ounce, and a tenth of an ounce. Keep in mind that the fractional coins usually carry higher premiums above the spot prices compared to the one-ounce varieties, which is why it’s better to invest in 1-ounce gold coins.
Stay Away from Rare Coins
Rarer coins usually require a lot more expertise and diligence when investing in them. Consider this: two coins may look identical, but have totally different grades. It’s differences like these that can add up in the region of thousands of dollars. It’s a good hire to use a professional grading certificate and get certificates of authenticity when you do buy rare coins. This is usually somewhat of a hassle for investors, though. The professional grading services, however, will judge the physical condition of the coin and assign it a grade – it’s like investing in a piece of art.
Buyback Policies
If you want to invest in gold coins, make sure you find out what a dealer usually charges to sell them. All dealers are different, and not all of them will charge a premium. Simply call out and find out their policy.
It’s worth remembering that there are plenty of scam artists out there, and if you come across a dealer offering delayed delivery or free storage, this should send up big red flags. Also, avoid buying from telemarketers as they usually charge a lot higher commissions.
Now that you have these tips, we hope you enjoy investing in gold!