Investing In Gold And Silver Coins

Gold Investment Information :

Way back in the year of 1933, Americans could only numismatic coins whose price depended more on collector interest, as compared to their gold content value. But now-a-days, Americans regained the right to own gold bullion which is started followed by December 31, 1974.

Investment in gold coins is supposed to provide hedges against the debasement and devaluation of currency on the economic front. By offering information on gold, various websites attempt to clear up any confusion and explain the advantages of bullion gold coin investments over numismatic coins and also inform the attributes that make gold bullion coins the best gold investment.

Gold bullion coins make the best gold investment by selling at small premiums over the value of their gold content. It is also found that it sells at small markups over the value of their gold content. The best selling gold investment bullion coins in the world are American Gold Eagles. Millions of investors have made them their preferred gold investment because Gold Eagles are the best selling gold bullion coins in the world.

Other Gold coin investments are:

The Gold Eagle coin's design results were so bad because they easily scratched and damaged so they have fallen into disfavor.

There are several reasons why Gold Eagles and Krugerrands carry greater appeal than 50 Pesos and 100 coronas:-

  • Initially they contain one ounce of gold.
  • By contrast, it is found that the 50 pesos contains 37.5 grams and the 100 Corona .9802 ounce.
  • Rather than grams Americans are more comfortable with ounces.

Gold investments for the long-term:

The Perth Mint Gold Bullion Lunar series 1-oz gold coins take the interest of investors in long-term gold investments, because they are limited production coins that can be bought at bullion coin prices. The Lunar Series Gold Bullion 1-oz coins may achieve collector premiums because they have limited production coins and part of a popular series.

Silver coins:

Basically, customers invest in coins purchasing only when they found that price will increase in future. People, who buy silver for investment purpose, look for an increase in prices, mainly due to silver's supply/ demand fundamentals. For example, among silver investors, Warren Buffett's silver purchase became legendary for investment purposes. However, it may be considered as an inflation hedge but one thing was sure that Buffet did not buy 129.7 million ounces of silver for survival purposes.

Silver bullion as an inflation hedge:

Silver and gold prices increased in response to price inflation that goes up to 13 percent in 1970s. Any form of silver bullion, from 1-oz silver rounds and pre-1965 U.S. 90% silver coins to 100-oz silver bars and 1-oz Krugerrand gold coins were found to be popular as silver and gold investments during 70's. As a consequence of the move when the Federal Reserve brought inflation under control, most of the silver and gold coins purchased in the 1970s were sold in the 1980s.

Coin silver for the worst-case scenario

Investors who invest money in silver as well as in gold coins for survival purposes, they have fear the worst that include the Federal Reserve printing dollars will become worthless which is the story of all paper currencies not redeemable in gold or silver. Only those were protected who convert their assets to silver or gold coins and had foresight to bail out of the banking systems.

These are the different situations when investors buy gold and silver coins for their survival purpose and can be used that coins for money or to barter for goods and services.

Silver Coins and Coin Silver for barter

U.S. 90% silver coins and 1-oz silver rounds are found to be best forms of silver for survival purposes. Fractional-ounce gold coins would be the most useful forms of gold, such as the 1/10-oz Gold Eagles, the ¼-oz Gold Eagles, the 1/1-oz krugerrands and the ¼-oz krugerrands.

Some required information during purchasing:

For survival purposes you buy coins which should contain amounts with which Americans are comfortable and they understand one-ounce, 1/10-ounce, and ½-ounce and ¼-ounce coins.

Silver coins or gold coins?

Now the question arise what should buy silver or gold? It basically depend on your investment amounts if you are investing $10,000 or less, go exclusively with one-ounces silver rounds or circulated pre-U.S. 90% silver coins, because they doesn't have collector value and trade value of their silver content so they are commonly called junk coins. If you want to invest more such as $ 30,000 or more than that in that case you may buy silver or gold both.