Bullion coins can easily provide hedges for investment risk against areas such as currency or stock trading. When people buy gold and silver, they often do so as a safe harbor. Precious metals can run counter to economic performance, often rising in value when economies go bad. That makes them able to offset stock portfolios based solely on economic growth. People then may choose to sell gold and silver when the stock market begins to rise again.
DGSE.com allows customers of Dallas Gold and Silver the opportunity to view what products are currently available for purchase, physically make those purchases and have them delivered. The website also offers an up to date ticker of market precious metal prices. Customers can be up to the minute aware of what gold, silver and other precious metals are worth.
Thus, some rounds, coins, and gold bars of similar weights can have substantially lower prices compared to their more popular counterparts. However, gold coins usually enjoy a higher premium than other gold investment options due to official recognition from a sovereign government. Even though the face value given to the coin is nominal in nature, it inspires confidence among buyers.
Answer. We probably get that question more than any other -- pretty much on a daily basis. The answer, however, is not as straightforward as you might think. What you buy depends upon your goals. We usually answer the "What should I buy?" question with one of our own: "Why are you interested in buying gold?" If your goal is simply to hedge financial uncertainty and/or capitalize on price movement, then contemporary bullion coins will serve your purposes. Those concerned with the possibility of capital controls and a gold seizure, or call-in, often include historic pre-1933 gold coins in the mix. Both categories carry modest premiums over their gold melt value, track the gold price, and enjoy strong liquidity internationally.
(Reader Note: USAGOLD offers an Online Order Desk as a subsidiary service for our clientele. Here you can choose from a full assortment of established investment items including modern gold and silver bullion coins and bullion bars, historic fractional gold coins and historic U.S. gold coins. At our Online Order Desk, you can order confidently any time day or night and on weekends at very competitive rates.)
The best places to get information for investing in gold bullion would be our “Investor Info” tab at the top of this page. There you will find more information about not just gold investing, but also investing in silver and palladium. You will also be able to subscribe to our Precious Metals Review (PMR) and our Gold Value Insights. Both of these subscriptions help to keep you informed on up-to-date information on the precious metals markets.
While it is next to impossible to buy Silver at spot, reputable retailers such as APMEX make it easy to get the best price available at a competitive premium over spot. The term spot refers to the current market price for a 1 oz unit of Gold, a rate that continually fluctuates during the day. Investors want to pay as close to the current spot price as possible with small premiums giving the best chance at a good margin when selling later. There are, however, other factors that make a higher premium worth paying, such as a history of appreciation, availability, or reputation of quality from the mint of origin. While all Precious Metals including Gold are sold at a premium, this small additional cost is what pays for expenses such as mining, refining, production, and collectible market value.
Answer. Since, for one reason or another, it is difficult to take delivery from any of the ETFs, they are generally viewed as a price bet and not actual ownership of the metal. Most gold investors want possession of their gold because they are buying as a hedge against an economic, financial or political disaster. When disaster strikes, it does not do you much good to have your gold stored in some distant facility by a third party. For this reason, over the past couple of years the trend even with hedge fund operators has been away from the ETFs. In 2011, ETF sales plummeted while purchases of physical coins and bullion for delivery skyrocketed.
An important way to examine the relationship between assets is by looking at correlations. Effectively, how do two investments move in relation to each other. For example, the correlation between the entire stock market and just the midcap segment over the past 10 years or so is roughly 0.98. That means they move in virtual lockstep, as you might logically expect. Gold, however, has a correlation with the stock market of 0.04 over that same span. Essentially, gold does its own thing.
What condition it's in: Condition is the first aspect to look at. The condition of a Double Eagle, Liberty Head, Saint-Gaudens or other variety will help you understand what it is worth. Bullion in mint condition will be in better shape than a circulated piece. As your hands contain oils that can rub down the details on a coin, the less it is handled, the better condition it will to be in.
These different weights of bars will carry prices depending on a number of factors. First, the spot price of gold--the current market price at which gold is being bought and sold--will drastically effect how much a gold bar will go for. What's more, the refinery that has minted the bar factors in to the overall price. Some refineries have a more distinguished reputation and therefore will charge more for their gold bars. The purity of fineness of the gold itself will also come into play. Gold fineness is measured in karats. You can find gold fineness ranked as 333 which equates to 8 karats, all the way to 24 karat 999.999 fine gold, which is the purest gold bar possible.
The Mexican Mint issues the official gold bullion for the nation of Mexico. Backed by the federal government and Banco de Mexico, the nation’s central bank, the Mexican Gold Libertad coin debuted in 1981 and has been available annually since 1991. The coin series includes 1 oz, 1/2 oz, 1/4 oz, 1/10 oz, and 1/20 oz options. The Gold Libertads feature the following designs:
A. Gold's baseline, essential quality is its role as the only primary asset that is not someone else's liability. That separates gold from the majority of capital assets which in fact do rely on another's ability to pay, like bonds and bank savings, or the performance of the management, or some other delimiting factor, as is the case with stocks. The first chapter of my book, The ABCs of Gold Investing, ends with this: "No matter what happens in this country, with the dollar, with the stock and bond markets, the gold owner will find a friend in the yellow metal -- something to rely upon when the chips are down. In gold, investors will find a vehicle to protect their wealth. Gold is bedrock."
Gold has been used as a form of money for thousands of years. Because of gold's luster, rarity, and its uncommon density (no other precious metal outside the platinum group is as heavy); it became the medium for trading. Gold also inspired the concept of money: compact, confidential, and changeless. Throughout the thousands of years that have passed, gold has only become more favored over other means of currency.
Answer. The biggest trap investors fall into is buying a gold investment that bears little or no relationship to his or her objectives. Take safe-haven investors for example. That group makes up 90% of our clientele, and probably a good 75% of the current physical gold market. Most often the safe-haven investor simply wants to add gold coins to his or her portfolio mix, but too often this same investor ends up instead with a leveraged (financed) gold position, or a handful of exotic rare coins, or a position in an ETF that amounts to little more than a bet on the gold price. These have little to do with safe-haven investing, and most investors would be well-served to avoid them.
The Gold price fluctuates daily. It moves separately from the stock market and other money markets. Several factors can affect the Gold coin price such as elections, geopolitical volatility, shifts within the stock market and even the threat of a possible recession, just to name a few. All of these factors affect the price of Precious Metals, which is extremely important when buying Gold bullion.
People with limited capital to invest in precious metals may not divest as much as they would desire into gold bullion. Hence, such buyers should stick to cheaper low-risk gold bullion products with lower premiums over spot, offering them solid appreciation over time – granting them with inflation-proof, financial protection. This is the best way to hedge against inflation and is recommended by financial advisors as a good method of balancing portfolios.
"Gold's return is solely based on the price going up. Thus when you sell gold you create a capital gain, that in most cases will be taxed at the more favorable capital gains tax rate," he says. "However, if one invests in gold in a tax-deferred account, the gains one receives will be taxed based on their income tax bracket, which is typically higher than their capital gains rate. So if an investor does want to own gold it should be done using taxable assets."
Gold mining stocks. One major issue with a direct investment in gold is that there's no growth potential. An ounce of gold today will be the same ounce of gold 100 years from now. That's one of the key reasons famed investor Warren Buffett doesn't like gold -- it is, essentially, an unproductive asset. He prefers to own investments that are "procreative," meaning they produce an income stream of some sort.
As you would have probably figured out by now, all forms of gold bullion products have their purpose in an investment portfolio. Hence, a safe and recommended strategy is to allocate a specific ratio (depending on you or the advice of your investment advisor) of every type of gold bullion instrument in your tangible assets. However, it is an entirely personal decision that one must take after careful deliberation.
The value of gold per ounce dramatically exceeds the value of silver. Just look at the 1 oz silver bar value to get a better idea and understanding of each metals value in the market. And silver is currently way undervalued versus gold on a historical basis. Because of its affordable price, silver is accessible to more investors on every level. However, gold is often preferred as “go to” asset during periods of global financial turmoil. Owning gold and silver bullion as financial insurance is an important part of any prudent financial plan.