Bullion coins are coins made from precious metals with a defined weight and content that are generally used for investment purposes. Bullion itself is the term for bulk precious metal that is cast as bars with a specified weight. Bullion coins are basically a smaller, more affordable version of bullion. Bullion are typically minted in weights that are fractions of one troy ounce to fit a variety of budgets. Bullion coins are usually made from gold and silver, but they are also be available in platinum and palladium. Many countries have their own official bullion coins, such as the American Eagle series of coins available from the United States Mint, and the Canadian Maple Leaf series offered by the Royal Canadian Mint.
Many investors wanted to profit from these tremendous increases in the price of gold. They bought it as a direct investment to take advantage of future price increase. Others continue to buy gold because they see it as a finite valuable substance with many industrial uses. Last but not least, gold is held by many governments and wealthy individuals.
The size of bullion is also a factor. Large bars can be stored in an insured bullion vault or a depository. This is a wise choice for investors with substantial holdings. Holding your metals in a depository may provide greater liquidity because it can generally be sold 24 hours a day, at least 5 days a week, anywhere in the world. Always inquire if a bullion vault is insured and the amount of insurance coverage provided. It is also possible to establish accounts for gold storage. It can also be delivered to a tax-sheltered account, such as an IRA.
Basically, this is a misunderstanding of what gold bullion is. The common perception is that rectangular bits of gold ("bars") are the most cost effective, and perhaps the only available, form of gold bullion. The same thinking has it that round bits of gold ("coins") are not really gold bullion. There’s a common misperception that "coins" are limited in supply, expensive, and perhaps, to some extent, collectors' items.
Gold mining stocks have their benefits and their drawbacks, and aren't the purest way to own gold. If you choose to take this route, you'll want to pay close attention to a company's mining costs, existing mine portfolio, and expansion opportunities at both existing and new assets. All of these will play a role in determining what an investor is willing to pay for a gold miner's stock (in addition to the spot price of the metal itself, of course).
These coins come in fractions of an ounce, such has a half-ounce, a quarter-ounce and even one-twentieth of an ounce. You’ll pay a higher markup for such coins than for one-ounce coins. The only real reason to own them is if you believe in a future meltdown of society, at which point paper money will be worthless and you’ll need small (gold) change to buy, say, ammo, freeze-dried food or a latte.
This article started off looking to answer a very simple question: Is gold a safe investment? Like so many things in life, however, simple questions can have very complex answers. In the case of gold, it is a risky asset class, and it would be unwise to invest only in gold. However, because gold is viewed as a store of wealth, you shouldn't dismiss it as an investment option. Investors tend to flock to gold when they are scared, which boosts its value when assets such as stocks are falling. It just needs to be paired with a more broadly diversified portfolio so you can benefit from the non-correlated nature of gold's performance. And, yes, that will require rebalancing your portfolio every so often, maybe once a year or when allocations get materially out of line.
Whether you choose to have your metal delivered to your home, or to keep it stored with your depository custodian's vault, it is up to you. By storing it at a depository vault, you gain the comfort and satisfaction of knowing that your investment is safely guarded according to depository industry standards. Stored metal provides you with the benefit of being able to liquidate your investment quicker. You may direct Monex to ship you your metal, at any time.
Generally, the term “bullion” includes any coin which is readily deliverable and trades based on the daily price of gold. Only a few items need to be reported upon sale, so don’t allow dealers to talk you out of buying bullion coins because of reporting requirements. The newer U.S. coins such as Buffalos and Eagles are specifically defined as numismatic coins in the legislation that created the mandate and they are not reportable by the dealer you sell to. However the IRS requires you to report profits on ANY numismatic or bullion item.
A. The short answer is 'When you need it.' Gold, first and foremost, is wealth insurance. You cannot approach it the way you approach stock or real estate investments. Timing is not the real issue. The first question you need to ask yourself is whether or not you believe you need to own gold. If you answer that question in the affirmative, there is no point in delaying your actual purchase, or waiting for a more favorable price which may or may not appear. Cost averaging can be a good strategy. History tells us that panics, mania, crashes and collapses are as common to financial history as thunderstorms to placid summer afternoons. The real goal is to diversify so that your overall wealth is not compromised by economic dangers and uncertainties like the kind generated by the 2008 financial crisis.
Bullion Coins offer investors the intrinsic value of the gold, along with the numismatic value of the actual coins. Coins are produced in world renowned mints such as the US Mint, Royal Canadian Mint, or the People's Republic of China and come in limited mintages, therefore increasing their value. They are also recognized as legal tender, wherein gold bars are not. Bullion coins usually come with a higher premium because they are considered legal tender and they are produced in respected Mints. Depending on where they were minted, some coins come in fractional sizes, along with the typical and most popular, one ounce increment. Gold bullion coins provide investors and collectors a product with value that will always be recognized all over the world.
This allows those customers to determine the value of their own collections as well as the fairness of a listed price; again, in order to make the customer a bigger part in their own gold or silver buying experience. They have several Dallas locations at 6174 Sherry Lane Dallas, TX 75225, phone number (972)481-3800, as well as locations outside Dallas in Allen, Fort Worth, Euless, Arlington and Southlake Texas.
Over the past decade, the technology sector has accounted for more than 380 tonnes of gold demand annually, a significant figure in itself and almost 13% ahead of central bank net purchases during the same period. Yet gold’s role in this vibrant and growing industry is broadly unrecognised and often misunderstood. This edition of Gold Investor focuses on technology, analysing gold’s current use and future potential across a range of applications.
Since its discovery, the precious metal gold has never ceased to fascinate. Initially used heavily in pieces of jewelry and currency, today it can be found in a number of other various industries due to its impressive conductivity and malleability. Though currently it's not often found in circulated pieces of currency, the precious metal is still widely collected across the world by civilians and governments alike. While gold coins or rounds are still popular, frequently gold is stockpiled in bar form due to a number of factors like the number of available sizes and how easy it is to track, stack, and store. Here at the U.S. Gold Bureau, we take a lot of pride in the wide variety of gold we offer. This is especially true when it comes to our stock of gold bars. Ranging in size from 1 ounce bars to 100 gram bars, you should be able to find whatever sized ingot you're looking for. What's more, we carry bars from a number of different refiners and manufacturers. Get bars made by International Trade Bullion or take a look at package deals that contain gold bullion from a number of different refineries like RMC, Perth Mint, and PAMP.
The exquisite 2018 Texas Gold Round pays homage to the iconic symbols of Texas and one of the most hallowed landmarks in the Lone Star State — the Texas State Capitol. The towering Capitol building proudly dominates the reverse of the Texas Gold Round, rising up on the face of the round echoing the splendor of the building’s architecture. The more...
Buying from a local dealer and buying online may be two very different things. Brick and mortar coin dealers will often have significantly higher dealer premiums associated with their products. Online dealers, such as Silver.com, often have much lower overhead and move more inventory thus allowing us to offer bullion products for lower prices. To see what others are saying about buying precious metals online from us, you can read some customer reviews of Silver.com.
Thus, even though some bars, coins, and rounds usually command lower premiums over spot, silver coins may warrant a much higher premium because of their collectible value. Also, another reason why coins command a higher premium is – they hold the prestige of being the only government-minted precious metals instruments and thus, enjoy a strong demand in the precious metals market.
Silver is not only used in modern industry, but is also bought and accumulated for investment purposes. In fact, it has been used for this purpose for over 5000 years now. Silver and other precious metals, such as gold and platinum, are considered a store of value. Silver has been used in currencies for a very long time, as well. It was first used as a form of currency all the way back in 700 B.C. From the ancient Greeks, to the ancient Romans, to the British, silver has been part of currency trading for ages.
Practically speaking, however, a buy-and-hold passive investing strategy may be best for the ordinary gold investor. Since economies tend to be cyclical, buy when the price of gold is down, whether or not your country is currently going through turmoil or you think it’s headed for some. In this way, you don’t have to worry about buying when everyone else is buying and driving the price up.
A silver round is exactly what it sounds like. It is a round piece of pure silver. This form is similar to a coin, but unlike a coin it does not carry any face value. Because silver rounds cannot be used as legal tender, these bullion products may be produced by government and private mints, as well. Silver rounds come in various sizes, but like silver bullion coins the most common size is 1oz. Silver rounds carry the smallest premium over the spot silver price, making them a very good choice for investors looking to accumulate silver.
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.
Gold exchange-traded products may include exchange-traded funds (ETFs), exchange-traded notes (ETNs), and closed-end funds (CEFs), which are traded like shares on the major stock exchanges. The first gold ETF, Gold Bullion Securities (ticker symbol "GOLD"), was launched in March 2003 on the Australian Stock Exchange, and originally represented exactly 0.1 troy ounces (3.1 g) of gold. As of November 2010, SPDR Gold Shares is the second-largest exchange-traded fund in the world by market capitalization.
Miners begin by finding a place where they believe gold is located in large enough quantities that it can be economically obtained. Then local governments and agencies have to grant the company permission to build and operate a mine. Developing a mine is a dangerous, expensive, and time-consuming process with little to no economic return until the mine is finally operational -- which often takes a decade or more from start to finish.
Gold rounds look like gold coins, but they have no currency value. They range in similar sizes as gold coins, including 0.05 troy ounce, 1 troy ounce, and larger. Unlike gold coins, gold rounds commonly have no additional metals added to them for durability purposes and do not have to be made by a government mint, which allows the gold rounds to have a lower overhead price as compared to gold coins. On the other hand, gold rounds are normally not as collectible as gold coins.
For many centuries, gold coins were the primary form of money. They started to fall into disuse by the early 20th century. In 1933, most countries switched from the gold standard to define the value of a dollar. This was because of the hoarding that occurred during the Great Depression. As a result, most countries stopped making gold coins to use as currency. The United States did not make a complete change until 1971 when it finally ended the draconian ban on investment ownership. For numismatic purposes, gold coins must not include alloys such as manganese brass. Some legal tender coins are not circulated, which means they are primarily for investment and collectors.
South Africa introduced the Krugerrand in 1967 to cater to this market; this was the reason for its convenient and memorable gold content – exactly one troy ounce. It was the first modern, low-premium (i.e. priced only slightly above the bullion value of the gold) gold bullion coin. Bullion coins are also produced in fractions of an ounce – typically half ounce, quarter ounce, and one-tenth ounce. Bullion coins sometimes carry a face value as legal tender. The face value is minted on the coin, and it is done so in order to bestow legal tender status on a coin, which generally makes it easier to import or export across national borders, as well as subject to laws against counterfeiting. However, their real value is measured as dictated by their troy weight, the current market price of the precious metal contained, and the prevailing premium that market wishes to pay for those particular bullion coins. The face value is always significantly less than the bullion value of the coin. Legal tender bullion coins are a separate entity to bullion gold. One enjoys legal tender status, the latter is merely a raw commodity. Gold has an international currency code of XAU under ISO 4217. ISO 4217 includes codes not only for currencies, but also for precious metals (gold, silver, palladium and platinum; by definition expressed per one troy ounce.
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.
These coins commemorate the famed Vienna Philharmonic Orchestra and the Musikverein Concert Hall where the musicians play. The Gold Vienna Philharmonic are widely-traded throughout Europe and around the world. Investors everywhere desire these lovely coins because they are unique in design, extraordinarily well made and carry the Austrian Mint's reputation for confidence and trust.
Bullion coins can be bought directly from the government agency or institution that prints the coin, if supplies are available. Most are minted on a limited run, and some run out very quickly. That leaves the secondary market from which to buy gold coins—either coin dealers or private owners. People buy coins for various reasons but the big drivers are investment to profit on changes in precious metal values or for collection. Popular coins include the South African Krugerrand, the Canadian Maple, and the U.S. Gold Eagle coins.
Canadian Gold Maple Leaf: The Canadian Gold Maple Leaf was issued in 1979, making it the second-oldest gold bullion coin behind only the South African Gold Krugerrand coin. Originally issued in .999 pure gold, from November 1982 onward the coins have included .9999 pure gold content. The coins have a sugar maple leaf on the reverse, with Queen Elizabeth II’s effigy on the obverse.