When you choose to buy gold bullion coins, you're committing to a choice which could well possess a positive affect the preservation of one's future buying power. But only when you really pay a fair price!
A lot of novices, buying gold bullion coins for the first time, overpay & subsequently will have to wait quite a long time to see "the return of these investment" (Will Rogers!). Gold Bullion coins are coins whose value is founded on their intrinsic metal value. Not on any "coin collecting value" (in spite of what some dealers might try and persuade you!). Normally they trade for a "premium over spot" ;."Spot" is the price of the metal in the "spot" market and is widely reported on the financial channels, in addition to daily in several newspapers. Some websites carry the graphs "live" (though often with a slight time delay). Typically, bullion coins sell for a premium all the way to 10% above "spot"- but this number varies depending on the type, quantity and size of bullion coins you choose to buy. For example: To begin with, the kind of coin: The premium above spot is generally lowest on Krugerrands. For a one-ounce gold bullion Krugerrand, you should NEVER- pay greater than a 10% premium above the location price. Ignore talk of "beautiful collectible coin" ;.This is a bullion coin pure & simple. For half-ounce coins the premium is greater; a half-ounce gold bullion Krugerrand must have a maximum price above spot of 12%. Again- that's it- don't be deceived! Next, quantity: If you order more gold bullion coins, you are able to expect a cost closer to the location price of the metal e.g. in the event of Gold Sovereigns, if you had been to get 100, expect to cover only 7% above spot. Finally, the size of the coin- the smaller coins tend to carry a higher premium above the location price, as noted above in the Krugerrand example Gold Coins. That's why I'd always advise anyone to save a little longer & try and buy a one-ounce coin rather than buying two half-ounce coins (or 10, tenth-ounce coins...). The numbers I have quoted are designed to provide you with a sense of the 'order of magnitude' of things to expect. I get completely fed up of hearing stories of first-time coin buyers paying DOUBLE what they should have. So to summarize. Buying gold bullion coins may be one of the finest approaches to preserve your wealth in these uncertain times- but only when you don't get overcharged at the outset. Watch on the gold price and do your sums.
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