The economy, currently, is not looking very good. In times of economic crisis, one of the first things that occur is the depreciation of currency, particularly the U.S. dollar. This is why investors and individuals alike choose to invest in a commodity that has more stability than currency.
When the financial situation around the globe looks bleak, many turn to buying gold coins. This is because this commodity has had a history of performing well when currency begins to devalue. Its status as a safety measure against depreciation means that the price of the yellow metal increases during times of economic turmoil. Here are some tips on how to buy these coins:
Keep It Simple
When it comes to this type of currency, many people like the idea of buying rare and valuable coins. This is because such coins tend to fetch higher prices on the market. In order to make a proper profit on such an investment, however, you need a great deal of knowledge on the subject. To truly understand the value of a rare coin, you will need to first get it certified by an authorized company. This includes further hassle as well as money. It is best to stick to coins that are more recognized by the public. You will be able to buy and sell them more easily.
North American Coins
It is best to buy North American currency such as American Eagle gold and Canadian Maple Leaf. The first reason is that this gold, particularly the American Eagle has been verified by the U.S. mint. This makes it a more trusted currency to invest in. These coins are also more popular around the world. This makes it much easier to sell them when you want to. Within the U.S, the American Eagle is more accepted while the Canadian Maple Leaf is more widely used around the world.
Compare Prices
As with purchasing anything, you should always compare the prices of this commodity. This is because the premium on the spot prices of this precious metal can differ radically from one dealer to another. The delivery price of the gold coin can also be used as a commodity. It is best to get reliable information on the spot price and then compare the prices that the dealers are selling the coins for. You should try to avoid paying more than a 5 percent premium price on the spot price.
One-ounce Coins
Another rule to follow is that it is best to stick with one-ounce coins. The American Eagle is available in one-tenth ounce, one-quarter ounce, half-ounce, and one-ounce. The smaller denominations typically have a higher premium on the spot prices. This is why it is advisable that you buy the one-ounce coins.
It may seem a little confusing when you first begin investing in gold coins. It is, however, an important commodity to invest in. It can help to diversify your current portfolio and provide some value in the event that currency begins to depreciate. There is also a great deal of security in owning a physical portion of a precious metal.
