I’m an investor with the prestigious Golden Eagle coins. We specialize in creating value to our customers through the active investment on coins. Contact me, William Goldmine, at www.goldeneaglecoin.com. According to the article New Blog Series Covers The Perils Of The Economy at www.collectible-gold-coins.coins-n-collectibles.com (2014), “Far too many people do not understand the power of having physical gold and silver in their portfolio.” Brian Whitfield, an investor with Pacific Gold Exchange, stated.
Precious metals are an intriguing way to create a good portfolio and secure one’s financial future. This is due to the fact that metals such as coins increase substantially in value over time. Precious coins such as gold and silver will give investors an edge over those who simply don’t possess them.
Unlike stocks, bonds IRAs, annuities, and other investments, gold and silver don’t usually go down in value. They stay consistent in spite of the negative economic times America is facing right now. Furthermore platinum and palladium coins are a viable alternative if gold or silver is too expensive. These precious metals will also stay constant in price and value while being highly attainable.
For instance, these coins can be used not just for building an investment portfolio, but also for collection purposes. Coin collectors understand the intrinsic value and price a coin collection can have. In the case of low mintage of coins, a collectors’ market has been created. The bullion value, which is the value a coin has based on the metal amount the coin is made out of, can be much more than the face value.
It’s important to know the bullion value of any coin; it’s what makes investing in coins worthwhile. For example, say a coin weighs 0.3 Troy ounces and is made of 95% silver, that means the coin has 0.22 Troy ounces of pure silver. The bullion value is $5.50 if silver is selling at $25 an ounce (0.22 x 25 = $5.50).
Just as important as it is to know the bullion value of any coin is to understand what goes on during a coin deal. What the coin investor expects from the coin dealer and what the coin dealer thinks he/she can offer are two different things. You have the retailer and the wholesaler; those are the two categories of coin dealers.
The retailer will get his merchandise, most of the time, from wholesalers. Retailers directly serve their clientele. Even though the retailer is more likely to pay a higher price for any coin collection you’re selling, they commonly use unethical practices such as bundling two coin collections under one price instead of treating each collection as a separate transaction.
In contrast, wholesalers attend local shows, auctions, and other events where coins are sold. They pay the lowest possible amount for their coin collection and mark up the prices for their coins based on measurable standards to maximize their profits. Wholesalers and large dealers more than likely subscribe to a code of ethics among coin dealers which ensures a recourse in case the unexpected happens. This is a big edge over dealing with a retailer.
As a coin investor, you need to know how much a wholesaler is paying for the coins; this will also give you, the investor, an advantage. The Grey Sheet is the coin dealer newsletter, printed in grey stock. Most reputable coin dealers subscribe to it. This source gives the “bid” and “ask” prices for every type of coin.
Another important piece of information is that the lower the grade the coin is, and the more common, the higher the profit will be for the coin dealer. Low-grade, common coins are harder to sell, so to make up for this deficiency the coin dealer may mark up the price.
The hope is that this educational, informative article has educated coin investors on the importance of having a physical collection of precious coins such as gold, sliver, and a host of many others. Endless value will be the result.
William discusses the relevance of gold eagle as an investment option. Get to learn about the basics and essentials of buying gold eagles online.