Additionally, the metal of kings has been used as currency for centuries. The free market has selected it to be used as money for thousands of years, partly because it is transportable, with a high value-to-weight ratio. Its density makes it more difficult to counterfeit. It is also fungible in that all gold ounces are worth the same. And it’s divisible, meaning that it does not lose its value just because it is broken into smaller increments. And it’s durable – not corroding or tarnishing over the years. Historically, the first gold coins were made in Anatolia during the 6th century BC. Most modern bullion coins come in 1 ounce, ½ oz, ¼ oz, 1/10 oz, and even 1/20 oz sizes.
Gold can be a profitable investment when all others fail. If you are concerned about inflation or the devaluation of your country’s currency, you may want to add gold to your portfolio. That said, understand the specific gold investment you’re considering thoroughly before you actually invest. For example, exactly how much will it cost you to store and insure physical gold? What are the tax differences for your income tax bracket between investing in a gold ETF or a gold mining ETF? Knowing the details can make a big difference when it comes to profitability.
The list of metal refineries the U.S. Gold Bureau offers products from is staggering. Regardless of what your favorite mint is, you should be able to find multiple different sized gold bars from them on our site; plus our catalog is expanding all the time. Find bars distributed by ITB or International Trade Bullion, a company from the Southwest United States. ITB works hand-in-hand with the U.S. Gold Bureau to provide thoroughly refined metals using modern quality control and advanced refining methods. We also offer bars from a number of international mints such as the Australia's Perth Mint and the Royal Canadian Mint.
If you wish to invest in gold, it probably makes the most sense to pick a percentage of your portfolio that you want to allocate to gold and then dollar-cost average into the position by buying small amounts over time. There's no harm in leaving the money that you plan to invest in cash while you are building the position, either, since cash is a safe-haven investment, too. Yes, you'll miss the opportunity from rising gold prices, but you'll still get the protection of holding cash. And it will stop you from investing the money in other assets while you wait to build out your gold position.
Storing gold bullion products can take up considerable space. As secure storage space is a limited resource, products must be chosen with care. Stackability of the products purchased will affect the amount/value you can store in a given area of the limited secure storage at your disposal. Value per square inch is a critical metric when buying relatively large quantities of gold bullion. Bullion bars allow substantially more amounts of gold per square inch compared to all other investment vehicles. On the other hand, gold coins and rounds are unwieldy options as they require casings, tubes, or boxes when storing large numbers.
Investors looking for bullion coins and gold eagles look at factors like scarcity. Those that are harder to find are the ones that collectors want. They also look at the overall size of the coin and its face value. While a dime may have a face value of 10 cents, it could be sought after more by investors. Collectors may put less importance on a coin with a higher silver content. Gold bars should contain a stamp that tells you its total gold content.
Though this interview will help you start safely on the road to gold ownership, it is just an overview. If you would like more detailed information, I would recommend my book, The ABCs of Gold Investing: How to Protect and Build Your Wealth With Gold which covers the who, what, when, where, why and how of gold ownership in detail. You can also shortcut the learning curve by contacting our offices and asking to speak with one of our expert client advisors who will be happy to answer your questions and help you get off to a solid start.
As the collector market for coins grew rapidly in the late 19th century and early 20th century, it became apparent that a more precise grading standard was needed. Some coins were simply more fine than others, and some uncirculated coins showed more luster and far fewer marks than others. Terms like "gem uncirculated" and "very fine" began to see use, as more precise grading descriptions allowed for more precise pricing for the booming collector market. In 1948, a well-known numismatist by the name of Dr. William Sheldon attempted to standardized coin grading by proposing what is now known as the Sheldon Scale.
Krugerands became politically controversial during the 1970s and 1980s because of the association with an apartheid government. As a result, production of the coins varied, with levels of production increasing since 1998. The Krugerrand weighs 1.0909 troy ounces and is made from 91.67 percent pure gold (22 karats). As a result, the coin has one troy ounce of gold with the remaining weight in copper. Three sizes have been available since 1980 including ½ oz, ¼ oz, and 1/10 oz. Proof Krugerands are also available for collectors. They differ from bullion coins because the proofs have 220 serrations on the coin's edge, rather than 160.
Some common coins are gold Eagles, Liberties, American Buffalo, South African Krugerrand, Austrian Philharmonics and Corona. They also have some truly rare coins like a 1907 High Relief Saint Gauden, listed at sixty-five thousand dollars and a 1848 Five dollar Half Eagle, listed for thirty-five grand. In addition Dallas Gold has a number of silver products including coins, rounds and bars.
A. Traditionally, wealthy, aristocratic European and Asian families have kept a strong percentage of their assets in gold as a protective factor. The long term economic picture for the United States has changed enormously over the past several years. As a result, that same philosophy has taken hold in the United States particularly among those interested in preserving their wealth both for themselves and for their families from one generation to the next. In recent years, we have helped a good many family trusts diversify with gold coins and bullion at the advice of their portfolio managers. Few people know that the United States is the third largest consumer market for gold after China and India.
The Royal Mint of England anchors its gold bullion coins with the British Gold Britannia coins. Introduced in 1987, the Gold Britannia features a reverse design created by artist Philip Nathan. Britannia has previously featured on various British coins, but Nathan’s reverse design introduced for these gold bullion coins brought a new, powerful vision of Britannia to British coinage. The obverse features new images of Queen Elizabeth II updated throughout her reign to accurately reflect her age. You’ll also find the Queen’s Beast Series of gold coins available from the Royal Mint, which include:
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.
Yes, it is true that in 1933 President Roosevelt issued an order to collect gold from U.S. citizens because the bank panics of that year and other factors were draining the Federal Reserve’s gold supply, and we were on a gold-based currency standard back then. (The gold standard was a system under which the dollar was equal in value to, and exchangeable for, a specified amount of gold.) And yes, Executive Order 6102 exempted rare and unusual coins from having to be turned in.
Answer. Futures contracts are generally considered one of the most speculative arenas in the investment marketplace. The investor's exposure to the market is leveraged and the moves both up and down are greatly exaggerated. Something like 9 out of 10 investors who enter the futures market come away losers. For someone looking to hedge his or her portfolio against economic and financial risk, this is a poor substitute for owning the metal itself.
Gold bullion is real, honest money...and, many say, the best form of money the world has ever known. It is a store of value and a safe haven in times of crisis. Gold is rare, durable and does not wear out in the manner of lesser metals (or paper!) when passed from hand to hand. A small amount, easily carried, can purchase a significant amount of goods and services. It is universally accepted, and can be easily bought and sold around the world.
The most traditional way of investing in gold is by buying bullion gold bars. In some countries, like Canada, Austria, Liechtenstein and Switzerland, these can easily be bought or sold at the major banks. Alternatively, there are bullion dealers that provide the same service. Bars are available in various sizes. For example, in Europe, Good Delivery bars are approximately 400 troy ounces (12 kg). 1 kilogram (32 ozt) are also popular, although many other weights exist, such as the 10oz, 1oz, 10 g, 100 g, 1 kg, 1 Tael, and 1 Tola.
Answer. Many of our clients own gold stocks and we believe they have a place in the portfolio. However, it should be emphasized that gold stocks are not a substitute for real gold ownership, that is, in its physical form as coins and bars. Instead, stocks should be viewed as an addition to the portfolio after one has truly diversified with gold coins and bullion. Gold stocks can actually act opposite the intent of the investor, as some justifiably disgruntled mine company shareholders learned in the recent past when their stocks failed to perform as the price rose. There is no such ambiguity involved in actual ownership of gold coins and bullion. When gold rises, they rise with it.
Bullion coin counterfeits (of all types) used to be rare and fairly easy to detect when comparing their weights, colors and sizes to authentic pieces. This is because the cost of reproducing any given coin precisely can exceed the market value of the originals. However, since about 2015 counterfeit coins are "flooding the market at an astonishing rate" and "it's gotten to the point where even people who deal with coins all the time may not be able to recognize a counterfeit coin right away" (American Numismatic Association (ANA), 2016). The coins consist mostly of tungsten plated thinly with gold, have the correct weight, correct or near-correct dimensions and are professionally produced in China.
ETF shares can be sold in basically two ways. The investors can sell the individual shares to other investors, or they can sell the Creation Units back to the ETF. In addition, ETFs generally redeem Creation Units by giving investors the securities that comprise the portfolio instead of cash. Because of the limited redeemability of ETF shares, ETFs are not considered to be and may not call themselves mutual funds.
Further, the confiscation sales pitch is usually based on a very broad definition of “rare and unusual coins.” “They’ll say anything minted pre-1933 has numismatic value,” says Michael Freedman, president of Euro Pacific Precious Metals. In fact, Freedman says, “there were millions and millions of gold coins minted in the 1800s and early 1900s that were simply coin of the realm. They have no numismatic value.”
Countries around the world face unprecedented levels of sovereign debt, and this balance will come due. However, governments like the United States are obsessed with just one solution to their debt problems: currency debasement, also known as inflation. The US is on autopilot towards the permanent destruction of the dollar with its inflationary monetary policies. Buying gold is one of the best and easiest ways to protect yourself from that destruction and grow your wealth at the same time. Click here to learn the ABC’s of buying gold.
But transparency is important. The modern world has audited accounts, and open exchanges, and 'public' companies for a good reason: because previous generations understood that when investment stops being open and transparent, and reverts to cosy secret deals, complex contracts, and big executive bonuses, then it is general investors who get cheated. Transparency helps stop these problems developing.
This is an obvious simplification of a far more complex history. However, in some ways, it was only natural that early humans would begin using the precious metal as a way to facilitate trade and accumulate and store wealth. In fact, early paper currencies were generally backed by gold, with every printed bill corresponding to an amount of gold held in a vault somewhere for which it could, technically, be exchanged (this rarely happened). This approach to paper money lasted well into the 20th century. That said, modern currencies are largely fiat currencies, so the link between gold and paper money has long been broken.
New investors will find great comfort and emotional attachment from buying Silver coins. You can expect to pay more for a Silver coin than its Silver bullion counterparts, but because of the coin’s scarcity and collectibility, you’ll have a more fulfilling buying experience. There is almost an unlimited variety of Silver coins for your investing pleasure.
Since gold bars are mostly traded based on their .999 fine gold content, the difference between a highly recognizable gold mint versus a smaller less recognizable gold mint is typically only a few dollars per troy ounce being bought or sold. The most important factor influencing gold bar prices remains the purity and the weight of the gold bar. Virtually all the gold bullion bars we carry are also allowed inside of Gold IRA's.
Each year the Royal Canadian Mint produces the Canadian Gold Maple Leaf bullion coin that is issued by the Government of the Dominion of Canada. The standard gold Royal Canadian Mint coins weighs one troy ounce with a face value of $50 Canadian dollars. It is one of the purest gold coins in the world at .99999 millesimal fineness. Other sizes frequently sold inMaple Leaf Coins to investors include 1 gram, 1/25 oz, 1/20 oz, 1/10 oz and ½ oz. The obverse features a profile of Queen Elizabeth II of Canada with the Canadian Maple Leaf on the reverse. Security features were introduced in 2013 and 2015 that are only visible under magnification.
Instead of buying gold itself, investors can buy the companies that produce the gold as shares in gold mining companies. If the gold price rises, the profits of the gold mining company could be expected to rise and the worth of the company will rise and presumably the share price will also rise. However, there are many factors to take into account and it is not always the case that a share price will rise when the gold price increases. Mines are commercial enterprises and subject to problems such as flooding, subsidence and structural failure, as well as mismanagement, negative publicity, nationalization, theft and corruption. Such factors can lower the share prices of mining companies.
Gold coin weight is not entirely standardized, so each one must be looked at individually. While many bullion coins produced today are designed to weight one troy ounce, you will still find new Gold coins struck in a variety of different sizes. You must also consider that some Gold coins are made with a combination of metals, so overall weight cannot be used to determine actual Gold content.
Finally, you'll find as you shop our silver for sale that there are various silver bullion coin programs issued with beautiful finishes, unique weights, and low mintage figures. The designs in these issues are typically offered for a limited time and can feature as a few as one or two designs in a collection, or offer a robust number of different designs. The following are just a few examples of special issue silver bullion coins: