Ali Gold: أكتوبر 2012

الجمعة، 19 أكتوبر 2012

Collecting Gold Coins

Collecting gold coins can be a fascinating hobby as well as a fruitful one but it is very important to keep in mind several factors when collecting gold coins.

Firstly one should have in mind what sort of gold coins one wants to collect. There are many and some can be quite pricey. How much do you want or can you afford to spend? If you are on a limited budget you can easily start with some of the smaller coins and build up a collection perhaps over a period of time. One can get one tenth and even one twentieth of an ounce gold coins these days and these are much easier to purchase than the traditional one ounce gold coins.

Next, you might like to collect coins of a particular country or a particular series such as Canadian Maples or South African Krugerrands. Some people like to collect Proof coins rather than used or uncirculated. These tend to be more expensive of course as they are coins that have been especially struck for collectors and are of a much higher quality than the brilliant uncirculated coins.

You will need to source a good reputable dealer from whom you can buy your gold coins. If possible try to buy your coins from the same dealer every time as then, if the time comes to sell some, the dealer will know the coins and generally offer you the best price for those you might sell. Dealers also like to have repeat customers and will tend to look after them and sometimes even offer a higher quality service.

If you decide to buy rare or proof sets be aware these can be more expensive, but if you have the money they are generally well worth the cost as, over time, they will appreciate in value quite nicely.

In addition buying larger amounts of gold means that you pay less in mark up costs from the dealer or mint than if you just buy a small one tenth ounce coin. The shipping and packaging might even be as much as the cost of the coin for a small coin.

What ever you decide to buy, the main point is to study and learn as much as you can about collecting gold coins and probably even more importantly, have fun doing it!

Which Gold to Buy

Which gold to buy can be an important question for the gold enthusiast.

There are so many types of gold one can buy. These can include gold investments such as stocks in mining companies or gold futures, gold accounts such as goldmoney.com or gold bullion such as gold bars or coins.

Firstly, gold investments, stocks and futures are very much a professional market and not for the hobbyist, more for the speculator in gold. For this one needs experience and a very good and trustworthy commodity broker. In addition there are some tax considerations to be aware of which may not apply with buying gold coins for collections.

Gold accounts can be held with banks in some countries but not all. This is an area banks are moving away from. However there are private companies that store actual gold in escrow for those who have accounts with them and this is one way one can own and store gold, usually purely for investment purposes.

Then we have gold bullion. This is in the form of gold bars and gold coins. When it comes to which gold to buy, this is probably the best way for most people. It is easy to obtain gold coins and small bars. They are not difficult to store and, best of all, they retain their value even in times of crisis or economic need.

However, sometimes it is a matter of personal choice which gold to buy. Either way there are some criteria to be aware of.

Learn as much as you can about the various type of gold you can buy.
Select your plan of which gold to buy and what your budget is.
Do an extensive browse on which gold you want to buy. Check out the various web sites such as which gold to buy for example.

Which gold to buy is your choice, but which ever type you choose, ensure you have fun and enjoy your gold, whatever form it may take!

Why Buy Gold

'Why buy gold?' is a question often asked by potential gold bullion collectors.

As we know, gold has been steadily rising since last year and has recently experienced a fall and has stablised out currently. However it appears it may be on the rise again and reaching for a new level.

In actual fact, in the long term, gold has proven over the past 200 years to be very stable. The value of gold as a purchasing power, distinct from the purchase power of the US dollar for example, still remains very much the same or better.

If you look back through history you would find that one ounce of pure gold has hardly changed at all. One ounce of pure gold now still purchases the same as it did 200 years ago. The change in paper currency however, due to manipulation and removing the gold backing from currencies world wide, has been dramatic and can be shown by the consumer price index. What originally cost 20 dollars in 1800 cost 216.86 dollars in 2005. Yet one ounce of gold still purchases today what it did 200 years ago. In fact it is tending to purchase more.

It is likely that this scenario will continue and over the next 200 years, inflation, recession etc. will continue as more paper money is printed. Yet the value of the pure gold troy ounce will remain the same in terms of purchasing power.

This is a good reason to purchase gold.

The next question is 'what sort of gold should one buy?'

Out of the possible four types, stocks, exchange traded funds (ETFs), futures and bullion, it is the bullion that will retain its value. Stocks can crash, futures can change wildly and exchange traded funds, although based upon actual stocks, rather like the dollar when it was backed by gold, still has the volatility of trading in a similar way to stocks and futures.

Bullion has a history of remaining stable, whether it be gold bars or gold coins, both have the stability of being actual gold rather than a representation of it. Both have the assurance of retaining their value even when there is a stock market downturn or an economic recession and both have an instant salability at the value of gold at the time of the sale.

Plus, gold coins and gold bars can be easily transported and stored making them the ideal medium to invest value in.

This then, for the collector as well as the investment or even just the hobbyist, is the answer to the question, why buy gold.

Gold vs. Silver

Sometimes, when it comes to what to buy, it is a case of gold vs. silver. Both are equally a good investment but which one could you call the best?

There are two prime factors that will influence whether to buy gold or silver. They are affordability and taste.

Gold
For some people it is gold all the way. Even if they cannot afford the one ounce gold coins or gold bars there are smaller coins such as the one tenth gold coins, which are more affordable. Unfortunately they also command a higher price in proportion as the mint's or dealer's mark up has to be added, plus expenses, shipping etc. Usually, the smaller the coin, the higher the additional costs are in relation to it.

The cost of the gold if you are buying 5 ounces or a kilo of gold coins or bars is much less than if you buy a one tenth ounce gold bullion bar.

Silver
Economically for some people, silver is the way to go. An ounce of silver is affordable for just about anyone. Silver is currently running at around 12 USD per ounce. A big difference to gold at 550 to 600 USD an ounce. It is possible to buy one kilo silver coins as well as one or two ounce coins. If you are buying silver purely for the silver sake and not interested in it from a coin collector's point of view, then junk silver or bags of old silver coins may be the way to go. Keep in mind that there is usually a higher margin above spot price for buying silver from a mint than for buying gold.

The other option is to strike a balance and buy both gold and silver. Perhaps buy some gold coins to keep for the long term maybe more infrequently and, on a more regular basis, buy silver coins. This can be a happy medium. If the need ever comes to sell but you do not want to sell your gold you can always sell small amounts of silver to tide you over and still retain your most valuable asset.

So when it comes to gold vs. silver, there really is no contest. Each have their place and each have their advantages.

Gold Value

We can see that the gold value continues to rise against the dollar but what does that really mean?

An interesting article by Martin Presler shows the true value of gold pointing out that, at the best, if the US reverted to a gold backed dollar then it would be $52,237.96 dollars for a gold backed dollar.

How did he arrive at that extraordinary conclusion you might wonder? Well it is simple enough.

The term for all money in the US is M3. This would include all the currency in circulation, held in various bank accounts, funds, money market funds, deposits, Eurodollar deposits held at all banks and any other loose change. All would make up the M3. However this does leave out the millions of dollars held by foreign banks and euros, or other currencies, held by non US Residents and so forth.

The total of all this money, as at the week ending Feb 13th 2006, adds up to the princely sum of 10,236.3 billion dollars. As he says,

"10,236.3 Billion dollars rolls right off the tongue but it really is... $10,236,300,000,000!"

Now the US government hold a substantial amount of gold in it's vaults. The government claims it is 800 tonnes. Martin Presler claims it is probably closer to 400 tonnes but says lets split the difference and call it 600 tonnes.

He then divides 6000 tonnes of gold by the amount of money, giving 1,706,050,000 dollars per tonne.

With 2240 pounds in a tonne that amounts to 761,629,46 dollars per pound and as there are 14.58 troy ounces of gold in each pound that makes 52,237.96 dollars per ounce of gold!

So, just look at that. If the dollar was 100 percent backed by gold, then gold would have to be 52,237.96 dollars per ounce.

Just how much paper money is out there?

You can look at this two ways. Either gold is worth a lot more than we ever imagined or the paper money we use is worth less than a matchstick on a hot day.

More information is available at Gold Value

Which ever way you look at it, the value of gold looks set to continue it's rise and it seems fairly safe to buy gold bullion in pretty much any form.

Gold Future

What will be in the gold future we are often asked.

Of course no one knows the future and there are many factors that affect the value or price of gold. But if one judges by the current activity of gold over this past year or so, it looks like the value of gold is going to just continue to rise.

How does that affect the gold coin collector?

Basically it is good news. It means that the gold coins that the collector studiously accumulates only improve in value over the years. Actually it is probably not so much the value of gold increasing as the value of the dollar declining against the value of gold.

A recent article pointed out that there have been so many dollars printed up that for the US to return to the gold standard would mean that every ounce of gold would cost over 52 thousand printed dollars. This means that whereas 100 years ago it only took 20 dollars to buy an ounce of gold. A few years ago 280 dollar bought an ounce, these days it will take 550 to 590 currently to buy an ounce of gold and, if the gold standard was reintroduced, then it would take 52 thousand dollars to buy an ounce of gold. Gold has certainly not changed. But the dollar has!

This demonstrates that the dollar has seriously deteriorated since the gold standard was dropped but that the value of gold continues to remain high.

It is most likely, in my opinion, that gold will continue to improve in value against the dollar provided that more dollars are printed than are needed just to manipulate the economy, and that those people who collect and hold real gold will have a distinct advantage over those who hold dollars only.

This applies to gold coins, gold bars, biscuits, jewellery and any other form of real gold one has.

Even if one paid top dollar for a proof gold coin 2 or 3 years ago the value of that coin will now be over the total cost of purchase and there is no sign that this will decrease.

What about collecting coins and bars in the future? Well with the likelihood of a continual rise in gold (more properly expressed by, "it takes more dollars to buy an ounce than it did before", then the sooner one buys gold the better off one will be.

So the gold future looks bright and there is good sense in continuing to buy as much gold as one can get one's hands on!

How Much are Gold Coins

How much are gold coins is a question that is asked everyday as the value of gold moves fluctuates.

When you buy gold coins you also pay for the dealers mark up or premium as well as shipping and sometimes insurance costs. Because of this additional cost it can take a while before you recoup the value of what you have spent.

But gold has been rising and has jumped from around 250 US dollars per ounce five years ago to over 600 USD an ounce. If you bought a one ounce gold coin 2 years ago you would have paid the value of one ounce of gold plus some extra to the dealer, maybe an additional 20 percent as well as shipping, another 5-10 dollars maybe. However, since gold has risen so dramatically, you will have doubled the value of your gold coin to cover the dealer's profit and the shipping and made a profit yourself, if you were to sell of course.

According to the U.S. Geological Survey, "Of the 193,000 metric tons of gold discovered to date, 62% is found in just four countries on earth. All the gold discovered thus far would fit in a cube 22 meters on a side." 20 to 30 percent of this is held in bank vaults and the balance, 70 to 80 percent, is mostly held privately in the form of jewelry, coins and bullion.

Gold coins are a significant part of the total gold in the world.

It is quite likely that gold will continue to rise and that, even though buying gold coins now while gold seems 'high' may not look like a good idea, gold is something that has traditionally held its purchasing value for over 200 years. It seems it is fiat currency (the dollar) that is losing its purchasing value. It makes sense therefore to keep and even add to one's own gold ‘reserves’ in the long term.

'How much are gold coins?' becomes not such an important question then as 'How much gold can I own?'

How Much is Gold

How much is gold theses days?

In fact the value of gold actually does not change much. What does change is the amount of money needed to buy gold.

Apart from some isolated peaks, gold’s purchasing power has not essentially changed very much over the past 200 years.

What has changed however, is the value of the dollar. This has steadily decreased over the years and with an accelerated inflation since the US government ceased using gold to back the currency and just started printing money to handle shortfalls and boost the economy.

In fact if they were to return to a gold backed currency then it would take over 52 thousand dollars to buy one ounce of gold, since the printed paper we call the dollar has decreased in value so much.

So the question is not so much, how much is gold, but more, what is the value of gold these days?

An ounce of pure gold will purchase pretty much what it purchased twenty years ago, or one hundred years ago or even two hundred years ago. In times of economic crisis or inflation and depression (sorry, now called recession) gold always stands out as a stable value so that, even when you might need wheel barrows of dollars to buy a loaf of bread, a tiny gold coin would be enough for you to buy a wheel barrow full of bread.

So when you ask how much is gold you are really asking what can I buy for this gold and the answer is, just as much as you ever could.

Why Does The Price of Gold Change?

From the 1800s to 1975 the price of gold and gold coins remained fairly steady at $19 to $21 US. In 1975 the gold standard was removed and this then contributed to the increased fluctuations in the price of gold.

The dollar was originally pegged to gold in March 1900 and the dollar was then 'backed' by "twenty-five and eight-tenths grains (1.67 g) of gold nine-tenths fine", and was set as the standard unit of value. The value was then set at $20.67 per ounce of gold. Consequently there was little movement in the value of the dollar, being pegged to a stable metal. The dollar, and the economy was fairly stable for many years.

Until, in 1975 the United States floated the dollar with respect to both gold and other currencies. With this the United States was, for the first time, on a fully fiat currency and the dollar was no longer pegged to gold and there was, in effect no gold standard. Today the dollar, like the currency of most nations, is fiat money without intrinsic value, which means that it has no backing and would be entirely worthless but for the fact that people have been persuaded to use and accept it as if it had worth.

After the gold standard was dropped the value of gold shot up to peak at over 640 dollars per ounce in 1980 before settling in the 300 to 500 range which it now occupies. The economy also suffered with waves of inflation and recessions. It has continued to do so ever since.

Gold, however, continues to have value and although the 'price' fluctuates more due to the manipulation of the dollar than anything else, the value of gold remains stable.

So, in point of fact, it could be considered that the value or price of gold is not changing. Only the dollar value subscribed to it is changing, depending on the fluctuations of the value of the dollar and the vagaries of the political, and economic climate.

It pays therefore to invest in gold and gold coins.

Buying Gold For The First Time

Many people do not realize how easy it is to buy gold and gold coins. Buying gold for the first time is actually quite easy.

Most people think in terms of the large solid gold bars. Although these are obtainable the cost and storage of such large solid metal bars is out of the range of most people who would like to own some gold.

It has also been traditional to purchase gold in the form of jewellery. This is fine except that the high cost and markup on jewellery make it a poor investment unless you know exactly what you are purchasing and can get the gold at the right price. Antique jewellery, for example is one way provided you understand the values of such.

A better and far simpler option is purchasing gold coins or small one ounce or 5 or 10 gram bullion bars. These are within the reach of most people and, in fact, one can purchase gold coins for as little as 40 US dollars and one ounce bullion bars for a little more than the current price of gold.

Gold coins and small gold bullion have the added benefit of being very easy to purchase and easy to store. One can simply hide them in the house somewhere, as many people do, or store them in a bank. In addition, gold coins are easy to sell in times of need and, provided you have kept them for a decent amount of time, you will get a good return on your gold coins. Anyone who purchased gold coins a few years ago, for example, will be please with the steady increase in gold value that will have given them at least a 30 percent increase in the value of their coins.

Best of all, gold coins and small bullion bars have a good investment value. The profit gold suppliers make on the sale of coins and small bars is marginal and, over the long term, does not really affect the investment value. The longer you keep your gold coins and small bullion bars the more stable your investment will be.

For people buying gold for the first time, it is probably better to start with the purchase of some Gold American Eagles or Gold Sovereigns. There is nothing quite like the feel of gold coins clinking in your hands and once you have experienced that you are quite likely to take up the very fascinating and profitable hobby of gold coin collecting.

How Secure Are Gold Coins?

When people ask how secure are gold coins, you can tell them that gold coins are very secure. Physically of course, gold coins will last for hundreds of years. Gold coins from the 6th century have been found in Western Turkey and were originally made from electrum, a natural alloy of silver and gold.

Nowadays gold coins are struck with pure refined gold. Many countries produce gold coins, including:

Australia
Austria
Belgium
Canada
China
Great Britain
South Africa
USA ... to name just a few.

Some of the more common coins one can easily collect are the very popular American Eagles, Gold Sovereigns from Australia and the UK and the famous Krugerrand from South Africa.

Gold coins are very secure. They do not tarnish. They are easily stored and can be a very economical buy. Best of all, they retain and even improve on their value over time.

Purchasing a car means that the value of the car deteriorates the moment you drive it out of the showroom. Purchase a gold coin however and you are secure in the knowledge that your asset in the stored value of that gold coin will retain its value and even increase in value over time.

You can purchase gold coins from many places from the coin dealer down the road to some of the top professional dealers in the world, through the internet.

To ensure your security and that you are purchasing genuine gold coins, do a study of gold coins. Find out what is available and compare prices. The best security indeed, is in the value. Gold coins can be purchased from as little as $40 US so getting your gold coins is certainly within your reach if you are on a modest budget.

There is nothing quite like the feel of a sold gold coin between your fingers. Once you have that, you will want more.

Where to Sell Gold Coins

Sometimes we have a need to liquidate some assets and where to sell gold coins can be an important issue if one is to get the best value for one’s gold coins.

Hopefully we have kept our gold coins in the condition in which we purchased them and have looked after them carefully, kept all the paperwork and any certificates and presentation cases the coins came in.

The next step is to decide the coins we wish to sell by searching coin dealers and auction houses to find out what the current prices are being asked for the coins we have. This will give an idea of their current value. Then we can ensure we get the best possible price.

The next step is to find the right outlet to sell our gold coins.

There are some alternatives and each has their advantages and disadvantages.

Firstly one can advertise in the local paper for collectors. Although you might find a collector willing to pay top dollar for your coins this is a rather hit and miss method.

One can use an auction house. Online you have eBay and several others and, again, this is hit and miss as you have a limited time and if the person who wants your coins is not watching, the bidding may be low. One does not always get top dollar at auctions.

The other alternative is to sell to a reputable dealer. Possibly the dealer you purchased the coins from which is usually fairly easy as there will be a record of the coins and, provided there is no change in the condition, the dealer will be happy to buy them back at an agreed upon price.

The dealer will usually give you a fair price, not top dollar obviously as he has to resell the coins again and is in business to make money and the transaction will be smooth. Dealers are usually happy to repurchase coins, creating turn over and giving them stock to sell.

If you cannot or do not wish to sell back to the dealer you purchased from, where to sell gold coins is a good place to start.

In any event, if you browse around and study the prices, dealers and auctions, you are sure to find where to sell gold coins and get a satisfactory price as well!

What are my gold coins worth

Sometimes, when you look at your prized collection of coins so painstakingly collected over many years you might ask yourself, "What are my gold coins worth?"

As the value of gold, and even silver, increases in value and the rarity of you coins increase, especially if you have collected those of a limited mintage or older, rarer coins in near perfect condition, it is very likely that your coin collection will have increased in value quite satisfactorily.

Provided of course that you have kept the coins in the same condition as when they were first purchased. Never taking them out of their sealed packaging so they do not get damaged or, in the case of silver, tarnished. Never clean them and keeping them out of direct sunlight.

Now there are various sites one can go to to get a good idea of the value of your coins.

What’s my gold coins worth?, and What are gold coins worth are two such sites and there are many others.

One can also check out the various coin auctions and eBay and see what the same coins are fetching on the open market.

Of course one can get a valuation done of various coins or even the entire collection and really one should on a regular basis at least yearly. This is a good idea for insurance purposes among others. In this way one would get a registered coin dealer to do a valuation and give you a written official result.

Whatever you do it is safe to say that the answer to the question, "What’s my gold coin worth?" is, "more than it was when I bought the coins!"

When To Sell Gold

When to sell gold is an important question. Much depends on why you bought gold in the first place and why you have it.

If you bought gold coins for pleasure because they look nice then it is unlikely that you would even consider selling your gold. However if you bought gold bullion in the form of bars or antique gold coins or even proof sets, then it is quite likely you bought your gold with a eye to the future.

Then the question, when to sell gold, becomes an issue.

The value of gold, as against the various currencies, goes up and down. At the top of this website you can see the gold price in USD and Euros. See also the gold price per ounce page for the gold price in your local currency.

So the next question becomes, Are you holding gold for the short term of the long term? If the short term then the value of gold on a day to day basis will assume a bigger importance. If the long term then it is the long term trend that will be of most interest.

For some people when to sell gold is when they need the money. For others it is when the value of gold rises well above the value it was when they purchased it. So the reason why one is selling gold can be important too.

Taking all these factors into consideration and leaving nothing out will give one a good indication of when to sell gold.

It may not always be when you think. And of course one should consult one’s financial advisor if one is buying and selling more for investment purposes than as a coin collector.

Whatever the reason why you have gold coins, knowing when to sell gold is just as important as knowing when to buy it.

Sell Gold Bullion

Sometimes it can be necessary to sell some gold bullion.

This might be in a financial situation perhaps where funds are quickly needed, or to recoup an investment where the value of the gold bullion has increased sufficiently enough to warrant the sale.

Gold bullion can be in coins or bars. Coins would usually be gold coins such as South African Gold Krugerrands or Canadian Gold Maples or even US Gold Eagles, for example. Bars would be one ounce pure gold bars or perhaps smaller such as half ounce, or one tenth ounce. This sort of bullion is easy to buy, easy to store and transport and quite easy to sell.

How to sell Gold Bullion
All one needs to do is locate a gold or coin dealer in the country in which you are situated and sell the bullion.

You do need to ensure that you get a respectful price for the gold.

Firstly you need to find out the current price of gold (spot gold price) on the open market. You can see charts at the top of this web site that show the current value of gold in US dollars and Euros, the most common ways of displaying the value of gold. These are updated every few minutes so you can get the current price of gold bullion at any time.

You also need to find a reputable dealer who will give you close to the full value of gold. It is unlikely that any dealer will give you the full current market value of gold as they also wish to make something on the deal. They have their expenses and have to resell the gold bullion themselves.

Sometimes you can sell gold bullion online at auction such as eBay for example. This is fine provided you are prepared to take the risk of actually getting less than a satisfactory price for your gold if few people bid for it. It is likely, however, that many will bid as gold always seems to be much in demand. You can always place a reserve on the item to ensure that it does not sell for less than it should.

Selling your gold bullion is probably easier than buying it. If you do not need to sell it I would recommend you keep it. But if the situation warrants it then, yes, sell gold bullion and take your money!

Sell Gold and Silver

More and more people are becoming aware of the fact that they can buy and sell gold and silver.

The drop in confidence by people in fical currency, as governments print more paper money to solve the problem of inflation and debt caused by the printing of more paper money, also inspires them to seek 'hard' currency and asset storage in the form of solid gold and silver.

In times of economic crisis or heavy government control, people gravitate towards something they feel has a solidity and a stability proven over many years and that is usually precious metals and jewelry.

When the value of printed currency fluctuates wildly, the value of gold and silver still holds it’s own and an ounce of gold or silver still purchases the same, if not more, than an ounce of gold or silver did 10 or 20 years ago. Many people than accumulate gold and silver in the form of coins and small bars.

The question then arises, when should one sell gold or silver? Of course when the value is at its highest. This will most likely not happen for some time. Both metals are rising steadily as governments violate the most basic of economics resulting in increased debt and inflation. If one can get by without selling gold and silver, then one gets to retain one’s assets and most likely, even increase them as the value of gold and silver increases against the value of the printed dollar.

Gold and silver hold their value, regardless of the economic climate. An ounce of gold will always be an ounce of gold. It will always purchase what an ounce of gold purchases. The same with silver. Accumulating gold and silver coins and bars is an excellent way to store one's assets for the future.

Don Stott at Sell Gold and Silver gives a good rendition of the importance of when not to sell gold and silver.

The point then is, if you want to sell gold or silver, don’t, unless you absolutely have to do so to survive.

Sell Gold Coins Online

So you would like to to sell gold coins online! Sometimes it can be necessary to sell some gold coins, either for economic or other reasons and this can easily be done online.

There are a few factors to keep in mind however, when selling gold coins online.

If you have been buying your coins from the same established dealer, then he would be the first place to go to sell them. He will have a record of the coins and know the current value and, as you are an established customer, he is more likely to give you a good price.

But you may have purchased your coins over time from here and there and not through one established dealer.

Then you basically have three choices. You can either sell to a dealer you can visit, sell to a dealer online or sell through an online auction.

Selling to a dealer you can visit is the easiest as you can take the coins with you and the dealer can give you a price on the spot. However it may not always be the price you want. With an online dealer you may have to send the coins in and wait for a price. Some dealers will offer a price unseen for popular established coins. But if you have coins that are rare or unusual the dealer will definitely want to see them before making you an offer.

Selling by auction requires a bit of thought and preparation if you wish to ensure the sale and to get the best possible price. As well as eBay there are also a number of coin auctions available online and it only requires registration and some study of the process in order to get started selling your coins.

If you like the excitement of auctions and are prepared to take a bit of a risk in terms of how much you will get for your coins, auctions are the way to go. People have been known to get fabulous prices by selling at online auctions. But if you do not want any fuss and simply want to offload the coins as quickly as possible then the dealer is the way to go.

Which ever way you go, browse around using google.com and look at what options you have available to you.

Gold coins are very easy to sell and to sell gold coins online can be a fun as well as a very profitable experience!

Sell Gold Coins

As the price of gold rises many people start to consider they would like to sell gold coins. They may have accumulated some gold coins over a period of years and now the price of gold is higher might be looking to make a profit.

Although it is not difficult to find someone to buy gold, of course it is better to keep ones gold coins as it looks very likely that gold will continue to rise as the dollar and economy drops into a decline.

But ff you are keen to sell gold coins either because you have a large stock of them or because you are interested in trading or making a living selling gold coins, there are two basic ways you can do so.

Gold Bullion Dealer
First you can become a coin or bullion dealer. If you have a very large quantity of gold coins this might be the way to go. It would, however, require some considerable expertise in the subject of gold coins and gold bullion. There is some investment in time and marketing and, if you are selling on line, then a website and all that that entails. It can also require a heavy investment up front in additional stock and, if you are opening a shop, some expenses in setting up the shop. There is also the question of licenses and or governmental approvals which may be required in some countries. Also there are tax considerations to consider. What sort of company will you have, private or public, individual or a limited company.

Yes if you want to be a coin dealer, there are many things to take into account just to sell a few coins.

Sell Gold Coins Privately
An alternative, if you have just a few coins or a one off sale, then you can sell your coins either to another individual, by auction or to a coin or bullion dealer. The individual will usually give you the best price, usually the spot or just above. But it is harder to find an individual who is willing to buy a simple gold coin. Auction is another possibility. You can get a good price or a not so good price depending on the current market and who is actually online bidding. The coin or bullion dealer will give you the spot gold value of the coin(s) you are selling less their margin as, of course, they want to make a profit when they resell the coins.

Gold Coin Auctions
On the auction option. This has been taken up by many people around the globe, and a few have turned it into a business. If you enter the words ‘gold coins’ in the search field at eBay you will get something like 80 pages of gold coins for sale. The thing to look for here to find out what gold coins sell is to look, not so much at the coins for sale as the number of bids. Some coins will have heaps of bids and some very few if any. Those that do not have many bids are not so popular and if you have those sorts of coins you are not likely to sell then very well. If you have the same sorts of coins that are attracting lots of bids well you can be sure you will get lots of bids too and a good price for the coin.

To summarize, some pointers to look for here are:

What coins attract the most bids?
Who sells the most coins?
How do they promote and sell their coins?

As this is an established field it is an excellent way to find out all the ins and outs of selling coins. Being a public auction such information is exposed and, whereas a bullion or coin dealer might be reluctant to help you be a competitor in the business, here you can simply watch and observe the various ways coin dealers on eBay and other auction houses sell their coins.

Probably the biggest advantage is when you have a track record and ideally, are a power seller. But all power sellers were new once and everyone has to start somewhere. You may only wish to sell a coin or two or you may be keen to start up a career selling coins. Either way, provided you are honest and demonstrate this with your eBay feedback, you will surely sell your gold coins to your and your buyers satisfaction.

Should You Really Sell Your Gold Coins
Really one should only sell gold cons when one needs to. Gold is still under valued and has some way to go to hit the real price of gold and, although, you are likely to find someone who will buy gold there is more to be gained by keeping your gold coins and watching them increase in value.

Sell Gold

This articles is about how and why one would sell gold. The need or desire to sell gold can be just as important to some people as it is to buy gold. Some daily investors buy and sell gold on a regular basis. They tend to be more professional rather than just the guy in the street who is not so familiar with the ins and outs of the gold market. So how does the ordinary person sell gold and why should they?

Why Sell Gold
Some times the need arises to sell gold. For example, if circumstances demand that we need funds for some emergency or we see some potential in the market that demands quick action which we cannot resist.

People keep gold for various reasons. Asset protection, catching a good opportunity when the value of gold increases. Preserving assets which others cannot access (ex spouses, creditors etc). Even just liking the idea of keeping ones assets in gold rather than in a bank.

So the reasons to sell gold may vary also. Cashing in some assets to recover funds for some purpose such as pay bills, buy that car you have always wanted, take advantage of a dramatic increase in gold value. Seeing an opportunity elsewhere and selling your gold to utilize those funds elsewhere.

How to Sell Gold
How you sell gold can depend on what types of gold you have.

You might not want to sell all of your gold so if you have bullion in the form of coins and bars, these are easy to sell. You can sell all or even just a portion of your total gold holding this way. Most dealers and even private individuals are willing to buy gold. Generally you will get, from a dealer, just below spot. The dealer also wants to make some money and he has to on sell the gold to do so. Selling privately you can get the spot price and sometimes a little more. Gold sold by online auctions, such as eBay generally sell for over spot. But if the price of gold moves up quickly the buyer can still get a good deal. Timing is everything here.

Here are a few points worth remembering also.

Coins are easier to sell than the larger bars. Basically people do not have to pay so much money for coins. A ten ounce bar is a lot of money for many people and comes under the category of big ticket items. Such bullion bars would really be sold to dealers who have a high cash flow. Individuals will buy coins however and generally pa over the then current value or price of gold..

Of course, the price you get for selling your gold is dependent on the prevailing price of gold at that time.

If you are going to select a dealer, ensure you select a reputable one for your gold coins or gold bullion. The larger dealers online have a reputation to consider and also have a standard process for buying gold. It is good advice, also, to check a number of established reputable dealers as the price offers may vary.

When it comes to selling by auction, such as eBay, it will be easier if you have an established eBay account with a track record as expressed in the feedback pages. However, if you are selling large quantities of gold coins you might want to consider one of the larger auction houses such as Sotheby’s for example.

But if you are simply selling one or two gold coins then a dealer would most likely be your best option. Some coins are easier to sell that others. Canadian Maple Leaf Gold Coins, American Eagle and Sovereigns are always popular with buyers and consequently very easy to sell.

Should you Sell Gold
For most of us, the entrance point into the fascinating world of gold is actually owning gold in the form of coins of various types and sizes or perhaps, if we are more fortunate, gold bullion bars,.

Most people like to save their gold coins and bullion not just for the looks or for the knowledge that they "own some gold", but also for investment purposes. One can quite easily accumulate a healthy investment in gold which, over time, does not diminish but in fact improves in value.

The best advice for selling gold is of course don’t sell gold but instead buy gold.

But if you absolutely must sell gold, rest assured that at least you will get top value for your gold coins or gold bullion!

Selling Scrap Gold

Selling scrap gold is an interesting area of gold most people have not been aware of until recently. Since the value of gold has risen more and more people are becoming aware that they can sell scrap gold and make a tidy profit from it.

But how do they do it?

What is Scrap Gold
Scrap gold can include any products that are made of gold or include gold in its manufacture.

Bent/Broken Jewelry
Bracelets or chains that are inextricably tangled
Broken and unwanted gold scrap
Casting gold and grain
Cluster Rings
Gold alloys
Gold bracelets
Gold bullion
Gold chain
Gold class rings
Gold Coins
Gold coins and bars
Gold dental crowns and bridgework
Gold dust and sweeps
Gold Earrings
Gold findings
Gold flake
Gold ingots
Gold nuggets
Gold Pins/Brooches
Gold screen and mesh
Gold sheet
Gold sheet,
Gold shot
Gold sizing stock
Gold solder
Gold sponge
Gold wedding bands
Gold wire
Gold-filled scrap
Goldsmith's bench filings and sweeps
Items with missing stones
Karat gold jewelry
Melted gold
Old gold watches
Placer gold
Polishing and buffing dust

The condition is immaterial. Old gold that cannot be restored to its former glory is ideal and the gold can be recovered.

Usually it would not be economical to repair such articles but they can easily be sold as scrap. One would not necessarily get the face value of the item, such as a coin for example, but one would get the gold value less a small margin from the dealer accepting your scrap gold.

Scrap gold can also be found in computer mother boards, old cell phones, scrap electronic boards. High grade scrap such as gold plated integrated circuits, gold plated connectors, gold plated fingers, pins, connectors etc.

How to Sell Scrap Gold
There are plenty of buyers for scrap gold. And they will jump over each other to get your gold!

The better ones will offer a special gold kit. This basically consists of a prepaid envelope and some kits may also consist of forms for describing the items you are sending in and various other details.

You simply fill in the forms and enclose the item with the form in the special bag and post it. It is advisable to make a copy of all the details you have entered on the form (a photo copy is a good idea) before you send it.

Usually the envelope is covered by insurance up to a certain amount by the company issuing the special kit. You can check out the details of this on the website. If you consider the gold you are sending is worth more than the insurance offered you might need to come to some other arrangement with the scrap metal merchant.

How Much Will You Get?
Generally speaking you will get the value of the gold the moment it is assessed by the dealer less a handling fee. It is important to note that the price a dealer may pay will not reflect the retail price of that item. It reflects merely the value of the gold by weight and quantity only. What that fee is, is difficult to say as it can vary with the type of gold and the quantity you are offering and the terms under which the dealer operates.

The dealer, when they have made an assessment, will advise you either by phone or email or letter, depending on your mode of communication, and you can then decide if you want to sell it or not. If decide to sell you simply advise them and they will send you a check. If not they will return the gold.

Before you send the item off it is a good idea, if possible, to get an idea of what the gold is worth.

How much gold is there in the item? what is the price of gold on the day? At the top of this web site are charts giving the current price of gold. That is pure gold of course 24 karat. Gold is generally priced at USD per troy ounce. If you have old and battered gold coins, weigh them. Apart from some minute alloy such as copper or silver, they will be mostly gold and if they are Canadian Maple Leaf Gold Coins, will be gold only.

The item you are selling may be of a lesser karat, such as a 18 or 22 karat ring for example, and so would be worth proportionately less as there is less gold in the ring.

Tips and Hints for Selling Scrap Gold
It is a good idea to remove anything of value from the gold you are sending in. With rings, for example, prise any stones out of the item or remove the gold from the rest of the piece so one can weight the gold separately. Keep in mind that other alloys such as silver, platinum and the stones may have a value also. If you can separate them, all the better. If not ensure it is clear that there is other precious metal there and get a price for that also.

The purer the gold with less of other extraneous matter, the better. I may pay to spend some time extracting the gold yourself if possible and can be done safely.

In any transactions with gold, it is prudent to make a complete copy of everything you do. Copy all forms you send off. Photograph the piece you are sending if possible. Make notes on phone calls made with names and dates. Keep all emails.

Ensure you understand the complete process with the dealer from start to finish.

What to do with the Money?
So you have sold your scrap gold and have received a check. As gold continues to increase in value against the dollar you might like to look at investing that money in some gold coins or bars.

That way you are likely to keep your funds. But of course that depends upon your circumstances and the reasons why you are selling scrap gold.

Scrap Gold Price

The supply of recycled gold, or scrap gold, is an important part of the dynamics of the gold market and depends largely on economic circumstances and on the behavior of the gold price. It has been noted that the gold scrap supply typically rises in times of economic distress or following a price rise.

What is the Scrap Gold Price?
The scrap gold price varies from day to day. As the price of gold climbs, the value of scrap gold climb also.

To sell your scrap gold you need a scrap gold price and someone to buy it.

The first thing to find out is, what is the current price for spot gold?. This can be found in the charts at the top of the page.

Second you need to find a dealer who buys scrap gold. There are many of these around and most of them will pay you about 10 to 20 percent less than the current market value of gold. There is a penalty for selling your gold at scrap price. The dealer has to process the gold you sell him and wants to make some money on the deal as well.

Keep in mind that alloyed gold (less than 24 karat) will fetch proportionately less. In other words you will not be able to sell a 9 karat gold necklace for the same price as a 24 karat gold necklace. The closer to pure gold you are selling the better price you will get of course. Apart from the fact that for a lower carat item there is less gold, there is also an extraction process to pay for.

However, to off set that there is often other precious metals which may be extracted. Silver, platinum, rhodium. If you suspect that other precious metals are present with the gold then you would be looking to get a price on those also. For example, with gold fillings often you will find platinum and palladium. Get a price for these are platinum, for example, has a higher price per ounce than gold.

How to Sell Gold Scrap
It is quite possible to get a very good scrap gold price for all your old and unwanted gold. Gold is virtually indestructible so unless it has been lost, all the gold ever mined still exists. With the right equipment, it is very easy to recover gold from even the most complex mixes. from most of the uses it has had since it is capable of being melted down, re-refined and recycled.

The type of scrap gold one can sell includes the various karat densities as found in jewellery, such as rings, chains, bracelets and earrings for example, from 8, through to 22 and 24 karat gold. Also the 16K dental fillings, gold teeth, bridges, crowns, etc. Other gold such as gold nuggets, pure gold coins and bars are also welcome at gold scrap dealers. In fact just about anything that has gold in it will be accepted.

Remember also, the scrap gold price will change from day to day and when you decide to sell, you should make an agreement with the dealer to accept a specific price otherwise some dealers will only pay upon receipt of the gold and if it has dropped you would lose out.

Of course, on the other hand, it may rise. In any event, you can easily find a scrap gold price for your old unwanted gold and recoup some value from it.

If you have a dealer willing to buy close to home it is simply a matter of taking the gold and getting a price for it. If there is no one suitable you will have to send the gold away for a quote. There are many reputable dealers who will do this and mostly they will, when requested, send you a special envelope to put the gold in. this envelope should be registered and require a signature when you return it and , of course, should be insured.

After the gold scrap dealer has assessed the gold you sent, you will get a phone call or email to contact their representative who will then discuss the price they will pay for your gold. If you are satisfied with it, they will simply send you a check. If you are not they will return the gold.

How to Buy Gold Scrap
Of course it is possible you may want to buy gold scrap.

In this case you would probably be interested in pure gold, unless you have the facilities to extract gold.

However most jewelry, for example, comes with the gold mixed with other metals, such as silver, copper, even platinum and palladium and rhodium (in the case of white gold). The gold purity is expressed as follows:

24 karat is 999.99 fine
22 karat is 916.6 fine
18 karat is 750 fine
14 karat is 585 fine
9 karat is 375 fine

24 carat is pure gold with nothing added. This is the purest gold available. Also has a fineness of 1000 but this is expressed as 999 being 999 parts per 1000. This is because it is very difficult to get real pure gold with absolutely no impurities and possible is for legal reasons also. This applies to gold coins a lot. Canadian maples, for example are listed as 99.999% purse gold.

There are other hallmark standards available as well as the above but these are the most common. It tells you how much gold there is in a gold piece. 14 carat, for example, is 585 parts gold to 415 parts other metal. This is important if you buy gold scrap, or any gold for that matter.

18 carat gold is more popular for gold jewelery with a 75 percent gold and 25 percent other metals ratio, usually silver or copper or a mixture of both.

The 14 carat standard is used more extensively in industry and for such things as pen nibs, circuit boards etc. It is also used in such jewelery as bracelets where more durability is required due to more use.

There is also a 10 carat, containing 41.7 percent gold and known therefore as 417. This is really just a cheaper version of the 14 carat and used for cheaper jewelery.

When it comes to the gold scrap price, whether you buy or sell gold scrap, it is important to know how much gold there is in the piece.

When is the Best Time to Sell Gold?

It has been asked, when is the best time to sell gold? Apart from traders who buy and sell, most people actually hold their gold in a number of ways. Bullion, gold coins, gold held in trust or escrow for them and visible through an accounting process are some of the ways.

Shares in gold mining companies (miners) are also available but this is not quite the same as holding gold and the value of such shares can depend more on the activities of the company than the value of gold itself.

There is nothing quite like having and holding gold in your hot little hands.

The trend of gold since the 1800s to present time is, overall, stable and now rising. From 1800 to the 1970s the value of gold compared to the US dollar remained stable at around 29 to 31 dollars per ounce. From the 1970s to the 1980 is rose to over 600 dollars per ounce. A very dramatic rise and many will remember this. It has since dropped and stabilized in the range of around 300 to 500 dollars per ounce but appears to be rising again.

Unlike the US dollar or any other floated fiscal currency, gold (and silver for that matter) maintains a stability not subject to the same manipulative forces as currency is. Gold is not subject to inflation or depression. In fact when the Dollar drops gold is seen to be more valuable because it does not follow the drop suffered by the fiscal currency but maintains it’s own integrity and value.

Of course if one needs the money one can sell gold, but that is not dependent on the value of the gold or the investment value.

Apart from that scenario which is more dependent upon one's own circumstances than the circumstances of gold price movements, when is the best time to sell gold?

The very best time to sell your gold bullion or gold coins is ... well ...Never!

Should you buy gold online?

If asked, should you buy gold online the answer is that it is quite safe to buy gold and gold coins online and there are many places one can do so provided one follows a few rules.

Obviously one should be sensible about it and ensure that one is dealing with a reputable dealer as well as understanding what you are buying. Is it the right type of gold for you? Is it the right price for you?

Here are a few guidelines that can help you to buy gold on the internet.

First ensure that you know exactly what you want in terms of gold. Is it gold coins? If so, which ones do you want? Sovereigns, Eagles, Krugerrands or others? Or are you looking for gold bullion? What size or weight?

Next, work out how much you can spend on a particular transaction. This should be an amount you can afford. It is nice to browse but easy to overspend. Especially when purchasing gold! Be aware that there may be shipping and insurance costs to add to the total payable.

You should ensure you purchase from a reputable dealer. Most dealers on the internet are reputable but there are a very few who would not be considered reputable.

If you find a dealer that has:

No contact details other than a generic email, such as hot mail, or contact page.
No security for credit card payments. In other works the lock does not appear in your browser when going to the payments page and the http does not change to https.
No information about delivery.
Poor looking and/or unprofessional site.

It is advisable not to buy from that dealer no matter how enticing the products appear to be.

Generally, you can safely purchase gold coins or gold bullion from internet dealers. Usually the larger dealers will also have shops or outlets so you know they have a location and are here for the duration and not just for the night!

Always thoroughly check the web site. Study the products and prices. Read the terms of service (so few people do) and make sure you understand what you are buying and from whom. Ensure you know how much the total cost is, including such costs as shipping and insurance, and you should be right!

Gold and gold coins are a great buy online!

Which gold coins are the best?

There are many different types of gold coins. Which are the best? Some of the more famous gold coins include:

American Eagles
Australian and UK Sovereigns
South African Krugerrands
Canadian Maple Leafs
Chinese Pandas

The criteria one looks for in a gold coin are such items as:

Type of coin. Eagle, Sovereign etc.
Size of coin. These can vary also. Sometimes measured in value and sometimes in weight.
Face Value. 1 rand or 10 rands (South African) for example.
Weight. Usually measured in troy ounces or part of an ounce but grams have also become a popular weight measurement recently.
Fineness. (999% fine) Amount of gold compared to other metals, such as silver. Gold bars are usually measured as 999 parts per 1000. Most gold coins are usually 917 parts per 1000. Other metal is added to make them easier to mint.
Gold Content in Grams. The weight of the gold contained within a gold coin measured in grams.
Gold Content in troy Ounces. The weight of the gold contained within a gold coin measured in ounces.
Price. How much you would be expected to pay for the gold coin advertised. This would include any margin added by the seller and any tax that might be applicable. This is often referred to as 'price above spot'.

When buying gold coins the information should be clearly displayed along with, ideally, a picture of the coin. Sometimes included is the date it was minted and the condition, if it is a mint coin (new, never been used, Mint Issue).

In fact, if the quality of the coins are up to par then it is really a matter of personal taste what coins one collects. American Eagles appeal to some people, Sovereigns to others. One simply picks those coins that appeals to one’s taste and collects those.

So the criteria for which coins are the best is the quality of the coins on offer including the value of gold contained, its condition and weight compared to the price.

Once you can establish that to your satisfaction, you are ready to collect the best gold coins which of course are the gold coins of your choice and have fun doing so!

What are Krugerrands?

The Krugerrand gold coin is named after Stephanus Johannes Paul Kruger. Known as Uncle Paul, Kruger was a former South African President and famous figure in the formation of the South African Republic. His head is on the obverse, or “heads” side of the coin. The reverse or “tails” side shows a Springbok Antelope, one of the national symbols of South Africa.

The Krugerrand was first minted in 1967 and was the first gold coin to contain exactly one ounce (31.1.55 grams) of fine gold. The Krugerrand was produced to provide a way for individuals to own gold. By bestowing legal tender status upon the coin, Krugerrands could be owned by citizens of the United States where, at that time, private ownership of bullion was prohibited but ownership of foreign coins allowed.

In 1980 smaller sized coins were produced including a half, quarter and one tenth ounce coins. All sizes have continued to be minted every year since. As a result of this the original kruger, as it is often called, is referred to as a “full” or “one ounce” kruger and people in the coin trade understand the kruger or krugerrand to be the full size original coin.

Krugerrands are available through the usual coin dealers and coin auction houses. When purchasing krugerrands or ‘krugers’, ensure that the size is mentioned clearly. Also ensure the date of mint, price and condition are clearly stated.

Although a matter of taste, the krugerrand is not generally considered aesthetically pretty but it was never really designed to be. It was designed to be just a lump of gold an individual could own. More tastefully design coins are available if looks matter, such as the British Sovereign or the Canadian Maple for example.

If you are interested in a solid gold coin that clunks satisfactorily in your hand and the gold content is guaranteed, you would be hard put to go past the pioneer of modern gold bullion coins - the now famous krugerrand gold coin.

What are Gold Sovereigns?

Gold sovereign coins first made their appearance in the UK under King Henry the VIIth in the 15th century. Such coins are now rare and can fetch over $12,000US.

Fortunately modern Gold Sovereigns are available at a much more affordable price.

There are basically two types of Gold Sovereigns today. Australian and UK Sovereigns. The UK coins were usually struck in the Royal Mint although some have been struck in Canada and Australia. The Australian Gold Sovereigns were usually struck at one of the mints either in Sydney, Melbourne, Perth or Adelaide.

Many of these have a value over and above the value of the gold content due to their rarity and the regard people have for them. Early Australian Gold Sovereigns, for example, have increased in value almost 10 fold since 1977.

Both Sovereigns have had a similar history in that they have been struck initially, then production halted for a few years before being struck again, usually with different obverse and reverse details. This has improved their investment value which yearly continues to climb.

When choosing Gold Sovereigns important factors such as the date it was struck (or made), the condition of the coin, weight and the usual factors relating to gold coins should be looked at.

Sovereigns tend to be collected more for investment value than trade. The quality of the coin has become more important here with an attractive and perfectly minted coin having a much higher value than one which has been worn or chipped. It is important to be able to ‘grade’ the condition of gold coins when seeking coins for investment purposes.

Sovereigns are a useful source of portable money. Soldiers often carry Gold Sovereigns with them when going to war. Gold Sovereigns can be cashed in and are accepted just about anywhere.

Much better than savings in the bank, Sovereigns have continued to increase over the years and a good collection of Gold Sovereign coins can be expected to improve in value very nicely over the medium to long term.

Investing in Gold Coins and Gold Bullion

Investing on gold coins and gold bullion can be a fun and intensely interesting activity. Gold coins and gold bullion have been an alluring attraction for man throughout the ages. Wars have been fought over it, love has been won by the use of it and merchants have been made wealthy because of it. It has been said that gold attracts people to it almost with a life of its own!

Gold has always been regarded as a precious metal and the first recorded use of it is in Varna, Bulgaria around 5000 BC. Melting point: 1063° C, it is a bright shiny, soft and malleable metal primarily used in coatings for electrical connections. Pure fine gold is 24 Karat (abbreviated K). Alloys of gold are calculated on a basis of 24 parts. 14K is 14 parts gold and 10 parts other metals. Gold colors are created by alloying other metals that impart their color characteristics to the gold.

It is not difficult to see why gold has been such a favorite choice over the years. It does not tarnish or rust. It holds its value relative to the value of goods and services.

With the advent of the internet the buying and selling of gold coins and gold bullion has become big business. Tons of gold are now moved around the planet literally at the speed of light.

Here are 5 good reasons for owning and investing in gold coins and gold bullion:

INDEPENDENCE. The security offered by gold is provided by its very independence. Gold is independent of states, currencies, productivity and credit worthiness. Some economic or political influences may affect the price of gold, but its value and its acceptability remain independent of them.

RESERVE ASSET. Many experts advise private investors to hold between 5 and 10 percent of their wealth, in the long term in precious metals. Experience has shown that the regular purchase of gold coins helps to protect the smaller investor against price fluctuations.

SECURITY. Gold has always been prized as precious and valuable. Over the years gold has proven itself to be one of the most reliable stores of value.

STABILITY. Despite possible price fluctuations on the open market, the value of gold has remained remarkably stable and has shown repeatedly the tendency to rise.

LIQUIDITY. Gold is traded around the globe 24 hours a day. With gold you possess an international currency which can always be sold around the world at any time.

In these uncertain times investing in gold coins and gold bullion can be a truly worthwhile investment for the future.

Gold Eagle

The Gold Eagle is an American gold bullion coin known as THE AMERICAN GOLD EAGLE.

Details of the coin are:

Fineness: .916
Actual Gold Content: 1 troy ounce
Diameter: 32.7 mm
Minted face value: $50

Each coin shows the official weight and denomination on the reverse. American Gold Eagles are authorized by the United States Congress and are backed by the U.S. Mint for weight and content. Although the face value is only $50US the coins are worth much more due to the gold content. On the obverse side is the Liberty design by Augustus Saint-Gaudens and on the reverse is the ‘Family of Eagles” which gives the coin its name.

These coins were first struck in 1986 and are produced by the United States Government Mint in both proof as well as uncirculated condition.

The coins actually come in 4 different sizes.

1/10th oz with aminted face value $5. - 16.5mm in
1/4th oz with a minted face value $10 - 22mm in diameter
1/2 ounce with a minted face value $25 - 27mm in diameter
1 ounce with a minted face value $50 - 32.7mm in diameter

You cannot buy these coins direct from the United States Government Mint. You will need to go to an Authorized Dealer.

You can buy both proof and uncirculated coins. The proof coins are considered more valuable as they are produced to a much higher standard than uncirculated coins which are simply coins that have not yet been in circulation. Uncirculated coins can still have scuff marks, edge knocks and other imperfections, whereas proof coins are produced to a higher quality standard and are issued mint. These come pre-packaged and should never be removed from their packaging. Originally proofs were simply minted as pre-production samples but have, over time, been made available to collectors and have become very popular as a result.

Which ever you prefer, Gold Eagles are wonderful coins to collect and can give many happy hours of enjoyment.

American Eagle Gold Coins

American Eagle Gold Coin is probably the most popular gold coin in the world. They are official legal tender gold coins in the US and, by law, are produced from gold mined only in the US. They are often considered one of America's most beautiful coins. Americans purchase more American Eagle Gold Coins than any other gold coin.

On the obverse (front) of each coin there is a graceful Striding Liberty design inspired by the Augustus Saint-Gaudens original design of the $20 Double-Eagle gold coins minted from 1907 to 1933. The reverse (back or flip side) of the coin displays a nest of American Eagles.

The coins are struck with 91.67% (22 Karat) fine gold. The total gold weight of the coin is stamped on the reverse of each coin. Special dies designed to show minute details of the coins, are used and this imparts the coins with a radiant golden shimmering glow in the light.

All American Eagle Gold Coins are minted to exacting standards and are of the finest quality. They are available in 4 sizes, 1/10th, ¼, ½, and 1 ounce, suitable to fit any budget. As gold is a comparatively soft metal, most coins contain a very small amount of alloy of copper and silver, as well as the stated amount of gold, to improve hardness and resist scratching.

One unique aspect of American Eagle Gold Coins is that it is the only coin where the weight, gold content and purity are all guaranteed by the US Government, which means that investors can buy and own the coins with confidence knowing that they do truly own the stated amount of gold.

One can purchase American Eagle Gold Coins from most major coin dealers as well as brokerage houses and even banks.The American Eagle also the most traded gold coin in the US and one can just as easily sell as well as purchase American Eagle Gold Coins. They are easy to store buy and sell and many people keep them for a 'rainy day' or in case of severe hardship or economic duress.

American Eagles are also available in silver and platinum but, by far, it is the American Eagle Gold Coin that people love most of all.

The Canadian Maple Leaf Gold Coin

First minted by the Royal Canadian Mint in 1979, the Canadian Maple Leaf is a pure .9999 (24 Karat) gold coin with no additional alloys added due to a special minting process by the Royal Canadian Mint. This has resulted in the Canadian Maple Leaf gold coin being the purest of gold coins.

The Canadian Maple Leaf gold coin is considered to be one of the most beautifully designed gold coins in the world. On the obverse (head) side there is a bust of Queen Elizabeth II, designed by Arnold Machin. On the Reverse (tails or flip side) we have the famous Canadian Maple Leaf symbol.

Canadian Maple Leaf gold coins are official legal tender and can be bought from most of the major coin dealers.

Only gold mined in Canada is used and the gold coins are issued in 5 different sizes or weights.

1 Troy Ounce
1/2 Troy Ounce
1/4 Troy Ounce
1/10 Troy Ounce
1/20 Troy Ounce

This makes the Canadian Maple Leaf gold coin an excellent investment and very easy for just about anyone to collect. The cost is little more than the value of gold and you know that you are getting all gold when you purchase a Canadian Maple Leaf gold coin.

In addition, the Canadian Maple Leaf gold coins are also valued highly not just by collectors and investors but also by jewelers since they are easy to convert into jewellery, being pure gold.

The Canadian Maple Leaf gold coin is an excellent all rounder. It makes an ideal investment or gift or can be collected simply because you just like the beauty of the coin.

In addition, you will be happy knowing that the value of your coins will continue to improve. As well as the gold content such coins usually improve in value over the years from a collectors point of view. So you can’t really go wrong collecting the Canadian Maple Leaf Gold Coin!

Gold ETFs or Gold Coins?

The extraordinary and popular expansion of gold ETFs (Exchange Traded Funds) in the gold market has prompted the question 'Are gold ETFs taking over the gold money market?' It has even been said that the increase purchase of gold by ETF funds has partially driven the current bull market.

The apparency that gold ETFs give the smaller investor a better spread on their investment is somewhat outweighed by other factors.

The buy in and sell out cost on gold EFTs is smaller than on purchasing actual bullion. With bullion you have the dealer mark ups on the buy and a reduced below actual gold cost per ounce on the sell. Bullion is somewhat of a longer term market but with gold being a bull market currently, the concept of being able to buy gold and even sell it for a nominal broker's fee seems very attractive for the small investor.

What is often over looked however is that gold ETFs are considered an investment activity and therefore subject, in many countries, to a capital gains tax or income tax. Accumulating or buying and selling gold coins however are usually not as they are actual legal currency.

There are some exceptions however as in some US states it seems a capital gains tax may be charged if one sells gold bullion coins. So in all situations when it comes to any investments or the buying or selling of gold in any form, and potential tax considerations, one should always consult with ones own financial advisors.

In addition, regardless of being backed by gold, other influences affect the gold ETF which is in reality a just a share backed by gold rather than the gold itself. This is demonstrated by the fact that you cannot take delivery of solid gold if you cash or trade in your ETFs. You will only be paid in cash..

There is a vast difference between owning actual gold and owning a certificate or piece of paper that says you own shares in a gold pool.

If that gold is not in your possession it is subject to the influences, such as governmental and bank regulation, in whatever country and bank it is deposited.

It is subject to the short term frame of mind where investors buy in to make a quick buck and sell out. This does nothing to increase the stability of the precious metal.

Of course there is nothing wrong with gold EFTs. They have wriggled themselves into a niche in today’s gold market by providing a platform for investors to invest in gold who ordinarily would not, without exerting too much effort.

It is probably too soon to say if they have found their level playing field. Hard gold bullion is still the favorite of die hard gold investors, especially for the long term. Eventually a balance will be found as those that want to 'play' investment will be satiated and the gold 'nuggets' of the industry will still be around buying and selling actual gold coins and bars.

So in the game of gold EFTs vs Gold Coins, it is unlikely that gold ETFs are taking over the gold money market. Just providing a lazy way for investors to jump on the gold band wagon.

Gold ETF

What is a gold exchange traded fund (Gold ETF)?

A Gold EFT is an exchange traded fund with gold being the principle and only commodity being traded. When you "buy gold" via a GOLD ETF it is very different to the general practice to buy and sell gold which most people are familiar with. To understand what gold ETFs are we need first to have some idea of what an exchange traded fund (ETF) is.

Exchange Traded Funds
Exchange traded funds (ETFs)were first introduced on the Toronto, Canada, Stock Exchange around the early '90s. They were then introduced in to the US and other markets during the 90s.

A simplified definition would be: An exchange traded fund has funds and stocks in one product and trade is made on the particular fund. Prior to ETFs, stocks and funds, were traditionally kept separate to reflect liquidity issues.

The purpose of an ETF is to be able to invest in the growth of an industry or even commodity that was not easily available to the market prior to ETFs.

Some benefits of an EFT include:

No stamp duty to pay (duty already paid on the underlying investments)
Flexibility in the timing of purchases and sales
Availability online.

Some disadvantages include:

No control over the activities or the content of the ETF.
Different costs associated with trading ETFs as distinct to ordinary shares
Tax implications
Hidden annual management costs ( the costs are built into the fund pricing)
No guarantee that you actually own gold.
The investor cannot redeem the gold or take delivery of the gold, only cash.

Gold Exchange Traded Funds
Gold ETF or gold exchange traded funds, are similar to trades, then, of other commodities and resources except that the shares "reflect" the price of gold, usually gold is stored by the Gold ETF in the form of ‘400 oz’ London Good Delivery bars.

The institutions administering the fund, such as StreetTracks for example, the biggest gold EFT in the USA, hold gold bars in bank vaults "backing" the holdings of their clients. This is taken to mean that, instead of having to own and cart around gold bars to buy and sell, the EFT fund holds gold bars in trust and you buy a proportion of that gold holding when you open an account with the custodian which is reflected in your account statement.

A closer look, however, shows some disparities in this as discovered by James Turk, the editor of Freemarket Gold & Money Report and the founder of GoldMoney.com

StreetTracks, the Biggest of the Lot
On the gold ETF fund (GLD)website of StreetTracks it states, " The objective of the Trust is for the Shares to reflect the performance of the price of gold bullion, less the Trust's expenses." This is quite different to stating that, "We act as a custodian and hold gold for our clients ." Their statement does not indicate one is trading in actual gold but that when you buy into a StreetTrack Gold EFT you are buying into a trust that is designed to "reflect" the share price of gold. And although one has 'shares' these shares do not come under the normal safeguards provided to shareholders of ordinary companies as is stated in their prospectus.

James Turk, in an article about StreetTrack, points out, "Its objective is not to provide investors with the opportunity to own gold bullion by investing in the shares of an Gold ETF. Rather, GLD is designed to track the price of gold. That objective is no different than what is accomplished by a gold futures contract or any of the dozens of numerous gold derivatives available these days. More to the point, futures and derivatives are sold even if the seller does not own the underlying gold bullion needed to deliver on its obligation. They are in practice fractional reserve systems, which allow liabilities for gold to far exceed the quantity of gold owned by the seller of that liability."

He also added, "Without strict controls over the assets of the fund, almost anything is possible. What if, for example, GLD were double-counting the same bar of gold? Impossible, you say, but James Turk goes on to say…

"Well, the GATA army has done it again, and thanks go to Stephen Marney. He analyzed the gold bar list reported to investors that shows the gold supposedly owned by GLD.

Last week Stephen brought to my attention that of the 6,981 gold bars reported on the list, there are 78 duplicate bar numbers. This result is staggering. It means that the genuineness of 156 bars, or 2.2% of the total assets of GLD, is called into question."

So questions investors should be asking themselves before they commit their fund is, does this mean that StreetTrack does not actually have as much gold as was first thought? In addition, it states quite clearly on the web site that a member of the public cannot actually take possession of the gold, 'they own'. Does this mean that there are some situations where an investor could potentially lose their funds?

What does all this mean? Well basically it means that an investor has to do some due diligence and really understand what a Gold ETF really is and what it isn't. Clearly an investor is not buying actual physical gold and they would be if they buy gold coins or bars from a gold dealer.

An investor has to ask themselves the question, then, "Do I want to actually own gold, or simply shares in it?

When you own actual physical gold, either in your hand or in a bank vault, properly audited and your account shows ownership of actual physical gold, there is no disputing the fact.

So, despite the hype and push to sell the Gold ETF by excited brokers, I will still be keeping my value in real gold coins and bars that you can hold in your hand!

Tax Free Gold

Just about everything is taxed these days but, believe it or not, it is still possible to buy tax free gold.

This will depend largely upon which country you live in and even which state or province in that country you reside. The tax laws in the western countries are known to be some of the most complex in the world and in the US the tax laws and regulations are extremely complex.

Capital Gains Tax on Gold Bullion
In some US states, for example, tax is not paid on the purchase of gold bullion but if you sell gold bullion you may incur a capital gains tax if you sell gold for for a higher gold price than what you purchased at.

Sales Tax on Gold Bullion
As far as Sales tax is concerned, gold coins are legal tender in the country in which they are usually made or made for and sold. Gold Eagles are legal tender in the US for example, and so do not incur any tax on purchase or sales.

The same applies to Gold Sovereigns in the UK or Maple Leafs in Canada or Kookaburras in Australia.

In the UK, VAT (Value Added Tax) is applied to the sales of some gold bars. But as gold coins are not an investment, although could be used for such a purpose, they are legal tender and of course one cannot tax the currency of a nation. Least ways not yet!

In Australia there is no GST on the sale of pure gold bars and gold coins but there is GST on American Eagles should you buy them from a gold dealer who is registered for GST, as American Eagles are not pure gold. You may not have to pay GST if you buy them from a private seller on ebay.

Understanding Tax Implications
So it would require some study, some financial and tax advise, perhaps before you buy gold bullion. Knowing which is the most appropriate gold bullion to buy may make a big difference to your own tax situation.

It is said that only two things are certain in life and that is taxes and death. It is possible that some gold bullion could be exempt from tax and this would certainly be welcome news to gold enthusiasts.

A tax free status does not apply to investments, stocks or even exchange traded funds, all of which may incur a tax of some sort, either on the investment or on the interest or ‘profits’ derived from such.

One should always consult with ones tax and financial adviser when it comes to any investments or the purchase or sale of any gold bullion or gold coin collectibles.

Regardless of any tax implications in buying gold, it is an excellent idea to put at least some of one’s hard earned money in gold coins and take advantage of any tax free gold bonus where one can!

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