tips to buy gold coins

Tips to Buy Gold Coins

When the world economy falters, gold continues to prosper. Gold coins, especially, make investing in gold highly enticing. Follow financial crises over the years, investors have turned to gold investing, particularly gold coins.

Below, we discuss some tips for investing in and buying gold coins from retail specialists such as City Gold Bullion in Adelaide.

Tips for Gold Coin Buyers and Investors

1. Opt for North American Coins

The American Eagle and Canadian Maple Leafe gold bullion coins tend to be the easiest gold coins to buy and sell. What’s more, the Eagle’s gold content and its purity are both guaranteed with the US Mint.

Further, widely used gold coins are usually easier to sell, unlike the Austrian Vienna Philharmonic gold coin or the South African Krugerrand. Coins like these are mostly bought and sold outside of the United States and other major countries.

Keep in mind the gold bars are extremely costly. They usually trade in 10-ounce amounts; however they can be difficult to sell and expensive to ship to the dealer.

If you do decide to buy and invest in gold coin, keep them in a safe deposit box rather than with a dealer. Physical possession is always best in order to avoid dealer scams.

2. Compare Prices Amongst Dealers

Other than the proof version, many Mints won’t sell their gold coins directly. But, you can usually find a dealer location tool on a Mint’s website. It’s easy enough to compare prices among dealers, since coins sell at a premium that’s above gold’s sport price. So, find the spot price on precious metal exchange sites online and start comparing dealers before you make a purchase.

Overall, paying over 5 percent premiums for gold coins just doesn’t make sense. Rather look for the lowest price you can find and avoid purchasing gold on auction-type sites where you could get caught up in an unnecessary bidding war.

3. Invest in 1-Ounce Coins

Many coins are issued in four different denominations, namely, 1-ounce, half an ounce, a quarter of an ounce and a tenth of an ounce. Typically, fractional coins carry higher premiums, though, so opt for 1-ounce coins.

4. Stay Away from Rare Coins

Rarer gold coins require more expertise and diligence when purchasing them. While two coins might look alike, they could have totally different grades, and this is a difference that could add up to thousands. It’s a good idea to consult a professional about it. You should also make sure to get a certificate of authenticity before you buy a rare coin.

5. Discover Dealer Buyback Policies

While considering investing in gold coins, remember to find out what the dealer charges to sell them, too. Each dealer is different, and some don’t charge a premium. Rather call first and find out about the policy.

Finally, remember that all that glitters isn’t always gold. There are plenty of scams around. Some red flags to watch out for are dealers that offer free storage or even delayed deliveries. Never buy from telemarketers, either, as they tend to charge significantly higher commissions.

Disclaimer: This article is published in partnership of Mediabuzzer.