If you want to buy gold coins there are certain factors you need to consider as it is not quite like buying gold bullion.
Since most countries allow the free import of legal tender gold coins and do not tax their trade, with a few restrictions , you have the luxury of choosing which gold coins you wish to invest in. All gold coins that have been mined since 1800 and have a minimum 90% gold content are considered investment gold and any trade conducted is exempt from VAT in the EU.
How to Buy Gold Coins
There are a number of different types of gold coins available for sale but the top two are British Gold Sovereigns, American Gold Eagles and Krugerrands. You should remember that the selling value of gold coins is tightly connected to the price of gold but they also include a premium which varies across the board for different types of coins as well as the quantity you buy.
British Gold Sovereigns
These gold coins make an excellent investment if you are buying at least 50 coins at a time as the premium is only slightly higher than Krugerrands. If you are buying smaller quantities you may end up paying a premium making gold coin prices too high to be worth the purchase. However, if you are buying “in bulk” then the slightly higher premium is worth paying because the resale value of British Gold Sovereigns is usually much higher and they are also much easier to sell than any other type of gold coin. It should be noted that the profits obtained from an investment in sovereigns are exempt from the Capital Gains Tax in the UK.
American Gold Eagles
The American Gold Eagle was first released by the U.S. Mint in 1986 and is offered in 1/10 oz, ¼ oz, 1/2oz and 1 oz denominations with a guarantee from the U.S. government that they contain the actual stated amount of gold in troy ounces. As the South African Krugerrand, these gold coins are 22 karat and also contain a silver and copper alloy to help increase the coin’s stability. The reason you should buy gold coins in the first place is as a risk management tool and as you would diversify your entire investment portfolio so should you also diversify your investment in gold coins. Since the American Gold Eagle is backed by the U.S. Government this makes it a worthy addition to your gold portfolio.
Krugerrands
These gold bullion coins are offered at a low premium as the South African Mint sells them for only an extra 3% as well as shipping and insurance costs but they sell only directly to large banks as well as bullion dealers. There are many other coins available but due to their longevity and the low premium which is caused by the high number of Krugerrands sold, they make for a wise investment.
Like with any gold purchase you will want to make sure that gold coin prices and premiums are not at a peak when making your purchase. Also consider other factors such as ease of liquidation because you may buy gold coins easily but some of them are more difficult to resell. Also check the historical trend of the resale value of the coin which will help you determine whether or not they make a good choice. As pointed out above, even if you pay a higher premium it may be worth it if the selling value of the gold coins is much higher.
Where to Buy Gold Coins and Bullion
When you buy gold coins it is critical that you use a reputable, authorized gold coin dealer and due to the Internet they are not as difficult to find anymore. Your first option is to speak to your current broker to see if they either deal in gold coins or can connect you to the best gold coin dealers. Most of the time they will have one or two names for your to deal with and since word of mouth is worth more than its weight in gold this is the best option.
Filed under Gold Price by on Jan 29th, 2010. 
Gold is a good investment because while there really is no stability in the investment market in general, gold offers a high level of security. It is therefore a good place to invest some money in. It is not like other investments that promise high profits right from the get go; investing in gold does not promise much, in fact the profit is not so big in the beginning, however it is not as risky compared to real estate and stock investments. A decision to buy gold when the market deems it favorable will prove to be a truly good one because you can always sell gold when the market leans to your side.
It is a very interesting road to take, especially when the market is generous. Being updated with the market is, therefore, very important in this business. As soon as the value of gold lowers a bit, know that this is the perfect time to buy and conveniently, you can buy gold online.
Online gold shopping is the most convenient of all methods because it takes lesser amount of effort and time. As long as you can find a company you can completely trust, then you do not have to worry. Buying gold online is safe. Another way to determine where and how to buy gold is to scrutinize the company completely. If the company:
• Cannot give you any contact detail
• Cannot give you delivery feedbacks
• Cannot provide you with a secure means to make credit card payments
• Has an unprofessional-looking site
Then, you have to have second thoughts about buying or selling gold from them.
Before you get into this business, you should know where and how to sell gold. You can find many resources on the Internet that can teach you how to sell gold online. Research will be helpful and will give you the knowledge you need.
Here are some basic guidelines on how to buy gold the right way:
• Educate yourself – You have to know the ins and outs of the business. Educate yourself very well about gold and about the market. So that you do not get tricked by sellers, you need to equip yourself with the right information.
• Check the seller – find out more about the seller first. Check if the company is a reputable one and see if you can find some of their customers who can give feedback about their service.
• Assess the gold first – before finalizing your transaction, you need to scrutinize the quality of the gold they’re selling.
Filed under Gold Price by on Jun 26th, 2010.
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