Gold Coin Investment as A Better Option
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The fact that the returns with almost all low risk investment options are rather low is one of their main problem. The point is that gold coin investment can be considered as an exception of this rule. Talking about most low risk cases, the investment results are not able to match with the levels of inflation and, as a result, when it comes to the final calculations, the investor loses money. On the other hand, in most cases the price of gold is able to keep up with inflation.
It is not a secret that gold has an ability to attract almost everyone. In addition, gold coins have this ability in enhanced degrees not only because of the reason that the gold is very pricey itself but also because when it is shaped as coin, it becomes the ultimate personification of wealth. The point is that gold has much more than just emotional appeal and it is really true as it is a long term investment.
For those people who want to make investment for any reason, there is a huge amount of investment vehicles available to choose from. Yes, stocks and securities, bonds and mutual funds are available to each investor. These investment vehicles can bring considerable return for any investor but the risk involved in the vehicles is also high. In the case that you do not want to go with a high risk option you can choose one thing of the following: either real estate which can be leased or low risk options
You should also know that the low risk options are government bonds issued by the Department of Treasury. Of course, as always, there is one drawback with these vehicles and it is that the got return is based on a fixed interest percentage that is set by the government. The investment interest is generally adjusted to stay at par with the rate of inflation that means that the investments return is still low. On the other hand, gold coins have a totally different approach.
So, gold coin investment is a wise decision for two reasons. Let’s start with that it is made of gold which rarely loses value. Secondly, a gold coin becomes a collector’s item when it becomes old enough and, obviously, in this case the value of gold coin grows a lot. For example, there is a collector who has bought an American $20 double eagle gold coin that was sold for a whopping $7,590, 020 at an auction! For the first time the coin was introduced in 1933 and the auction was held in 2002.
There is no doubt that gold coin investment is a very lucrative option. And in the case that the gold coin is kept properly, it carries the value of gold and, as it was already mentioned, gold prices rarely go down. If the case is that you keep the gold coin for long enough you can be sure that you have a gold mine in your pocket and you are definitely lucky and potentially reach person!
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Read why 90 junk silver have become a hunt object for the people who want to save paper money from inflation.
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7 Valid Reasons Why The Price of Gold Is Going To Skyrocket
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Last March, the price of Gold Bullion per ounce hit an all-time high of $1,030.80.
On August 15th of 2008, gold hit a nine-month low of $773.
That’s a correction of 25%!
In just one month alone – from July 15th to August 19th – gold fell 20%.
However, since that time, gold has regained almost all of its losses.
Still – I know there’s a lot of gold investors out there that are probably wondering if the gold will ever be able to climb over and maintain that $1000 price level. At this point, you’re probably fed up and are thinking seriously of dumping whatever hard assets you have.
I’m going to provide you with a little bit of historical gold trivia that I hope will reassure you.
So, take a deep breath. Relax. And keep reading.
It may be comforting to know that the last great gold bull market of the 1970’s was also interrupted by similar corrections.
1. In November of 1978, gold had a 20% correction.
2. In October 1979, gold lost 13% in four days!
3. Gold had a horrendous correction in 1975, falling 50% from $200 per ounce to $100 in 1976.
At that time, everyone proclaimed that the bull market in gold was over. As gold investors well know, the price of gold continued its climb over the course of the next few years, not stopping until it hit $850 in 1980.
Okay, I know what you are thinking.
That was then. This is now.
Ah, but even in the current bull market, gold has had corrections similar to what we are experiencing now.
1. In the summer of 2006, gold fell 21%.
2. But by the end of 2007, gold had risen 45%.
The point I’m trying to make is that corrections, painful as they are, are normal in bull markets.
Now that we’ve taken a hard look at the statistics, we need to determine if the fundamentals for buying gold bullion are still intact.
Let’s go back to March 2008 when gold had climbed over $1000 an ounce.
You were pretty excited, huh?
Now, ask yourself: what was causing the price of gold to rise?
1. The dollar had long-term, fundemental problems
2. Banks were failing
3. Mortgage lenders were facing insolvency
4. Housing prices were falling
5. The economy was on the brink of recession
6. Oil faced a long-term supply shortage
7. Unemployment was rising
Okay, now ask yourself: have any of the 7 elements listed above changed? Have things improved? Think about it. If the gold bull market were over, we’d have:
1. Healthy banks
2. Stable or rising housing prices
3. A new, major oil discovery
4. Increasing job creation
5. A falling unemployment rate
6. A fiscally responsible government
7. A strong dollar due to a balanced budget and a shrinking deficit
I don’t see any of the above happening anytime soon. Do you?
In conclusion, I would say it is safe to assume that the fundamental reasons for owning gold bullion, as a safe-haven investment, are still valid. I would further venture to say that gold – at $900 per ounce – is the buying opportunity of a lifetime!
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Gold Investments: unique $20.00 Saint GaudensCoins – Important Basics
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There is no doubt that the $20.00 Saint Gaudens gold piece is an incredible coin thatdeserves the consideration of hobbyists around the globe. As a collectors’ coin (but not a bullion piece) this coin could be worth two to three times the actual ounce price of gold. The other important fact to mention is that these coins were minted from 1907 through 1933 and a lot of investors already rank it as one of their best choices for investment purposes. The reason that now they are selling fairly low for gold pieces is that it has been recognized since the Civil War and have a broad appeal.
You should remember that it is advised to research gold prices at the same time when looking to buy these gorgeous coins. PCGS MS-64 and MS-65 grade the prices of St. Gaudens coins, so, the higher the MS value, the more valuable the coin is. You should also visit numismatics sites concerning in order to find more information concerning these investments.
The advantage of this is that $20.00 piece provides a “double play” advantage because of its high gold content. It means that when gold bullion prices rise these coins will also rise and could bring you a considerable return (even up to three times the price of gold bullion). You can be sure that the market of Saint Guadens gold coins holds their value and that is why many wealthy royal families and government treasuries along with collectors, typically own Saint Gaudens coins. Of course except their market value, the beautiful design of the coin must be pointed out as it is really worth to be seen.
Even though the premiums on the higher-grade coins are low the American Government considers the $20.00 gold piece a rare coin. As a matter of fact this unique coin is not subject to the ordinary reporting requirements that gold bullion coins are. There are two general opinions concerning the thing mentioned above the first one is that further government controls will be places on gold bullion and the second is that even confiscation is available.
It is vital for you to keep in mind that when looking to purchase these coins, you should make sure they are professionally graded by the most highly respected grading organization in the world (for example, The Professional Coin Grading Service) as you will be able determine your investment in regards to price and grade if you own a coin with this grading behind.
The last but not least thing to be mentioned is that these coins will surely improve your investment portfolio and in addition give you an incredible pieces of art to treasure and admire! So, what are you waiting for, go ahead and don’t miss your chance to expand your investments.
If you are looking for a reputable place for gold bullion to buy, please visit this site. Practical and professional tips about gold bullion investment waiting for you here.
Read also about silver bullion bars.
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Facts to Know About Gold Bullion and Gold Coins – Free Important Tips
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It is a well known fact that in difficult economic situation gold coins are often considered because people are always searching for the safest place for their financial portfolio in order their investments would be safe. As concerning gold, it has always been a strong contender for this protection. It should be also pointed out that gold coins that are quick to be considered as the protection factor, when the economy takes a strong position in altering someone’s portfolio on short notice. But the point is that you must know what exactly kind of gold coins should be bought.
Today’s economy is very changeable and that is the reason why a lot of people are not sure where to place or move their investment dollars. Of course, in order to solve this problem many of you would decide to move the majority of your investments out of stocks and into the bond market, but there is a vital thing to keep in mind – precious metals should be another strong consideration. You might wonder why they are so safe and the answer isthat they are a tangible investment and the market has always considered them to be essential no matter what economic conditions are.
So, for those people who are searching the way to protect their longer term investments it is recommended to choose gold coins that date prior to 1933 and can be a mixture of European and American gold coins for that reason that they have historical and collector benefits and that helps maintain their value over simple gold bullion.
The other important fact to mention is that gold coins are often considered insurance against a person’s portfolio, but just how much of a your portfolio should gold coins play as an insurance factor. You should keep in mind the rule of thumb is a minimum of 10% and on the high end around 30 to 35% and it will give you an assurance that your ratio of diversity is well within the range of most gold coin investors.
As concerning the short term investors, they will often pass on the precious metals market if the economy is somewhat stable and that there are little swings going on with the economy but the truth is that today is not one of those times., Precious metals, much like the oil market, seem to swing in union with the oil values. Keep in mind that to invest wisely means to select a commodity that is regardless to the economy.
Now you see that gold bullion and gold coins are a safe investment and you should also consider purchasing with your investment dollars in order to protect your financial portfolio. There is nothing difficult as both buying and selling gold is easy Doubtfully that there is something else that could make you feel safer about your investment.
For the info about gold bullion to buy and gold bullion investment – please visit this site.
Read also about silver bullion bars.
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Important And Helpful Information About Gold Coins
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There are assorted reasons why a person would choose to start purchasing gold coins. One reason is they see them as a good investment, while some other person may select to buy them because they see the way gold actually increases in value. Even now, the demand for hard to find coins is very strong.
Particularly which ever reason an individual chooses for acquiring gold coins they know that is one of the safest ways for them to invest any extra money they have. Just due to the fact that they understand that over time these coins are unlikely to depreciate in value but instead are more likely to appreciate.
When it comes to acquiring any kind of coins the initial thing you should be doing is looking for a reputable and honest dealer. If you can select one who is a member of the Numismatic Guaranty Corporation or the Professional Coin Grading Service A dealer who is not a member of these professional bodies will often sell you phony coins.
Once you have found a reliable dealer, you can make a decision regarding the amount of gold that you want to acquire. Because the cost of gold changes so frequently, it is best to know how much you can to spend.
You need to be conscious how much money you can afford to invest in gold coins, you also need to acknowledge which coins are the best investment. Presently gold coins are usually divided into a maximum of three assorted groups. Ones that are rated as regular gold bullion, those that are classed as uncommon and those which are collectible.
Gold bullion coins are traded only for the amount of gold contained within them. While hard to find and collectible coins their prices really fluctuate immensely and certain factors will need to be taken into consideration in order to place a value on them. Along with how much gold is contained in them, the age and how rare the coin is will determine what price these types of coins are purchased and sold for.
When purchasing coins, it is vital to know about the procedure of grading and evaluation. This will assist you when attempting to understand the coin market and to know when bargains arise.
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