How to buy Gold Coins as Investments

In a recession economy, a gold investment is a good way to protect your savings. Gold and silver have been used as a currency for centuries and can be a protection against inflation and the currency being devalued.

BULLION VS. NUMISMATICS: It is safer to stick with gold bullion coins rather than collector gold coins, also called numismatics. Gold bullion coins cost little over the cost of the gold itself. Numismatics, however, are priced according to rarity and are a risky investment in any economy, but even more so in recession.

SPOT PRICE: To determine the cost of gold coins, first you have to find out the daily spot price for gold. The base price for metals is called “spot” and changes daily just like the stock market. Some web sites give you the daily price plus the prices from the previous day, week, month, and year. Follow the prices for a few days and plan to make your gold investment during a price drop. See resources for a link to spot prices

CHOOSE YOUR COIN: The most common investment coins are: American Gold Eagles, South African Krugerrands, Canadian Maple Leafs. These coins are all 1 oz of gold and are stamped with their gold content. Eagles are the most popular in the United States. The cost over spot for a Krugerrand is less than that of an Eagle. Canadian Maple Leafs easily scratched and damaged because it is .999 fine and not packaged in a hard plastic shell.

LESS COMMON: The Mexican 50 Pesos and Austrian 100 Coronas cost even less over the spot price than for a Krugerrand. They are good investments, but have some draw backs. The Mexican 50 Pesos is 1.2057 oz (37.5 grams) and is stamped with 37.5 Gms ORO PURO. The Austrian 100 Coronas is .9802 oz and do not have gold content stamped on them. Americans prefer to deal with ounces or easy fractions of an ounce.

FIND A DEALER: Use the internet or yellow pages to look for local coin dealers. Internet sales usually require you to pay with a wire transfer, which costs money, require a minimum purchase and sometimes charge for shipping and insurance. Call different local coin shops for the best over spot price. Each shop sells coins at “spot” plus their commission. Shop around.

BUY WITH CASH: If you buy with cash, there is no record of transaction. If you buy $1,000 or more in metals at one time, you avoid sales tax. It is better to buy more metals with that money than to give it in sales tax.