For a long time, gold has been seen as a symbol of prosperity and wealth. It is among the popular and most sought-after precious metals and has for long been seen as a wise investment choice.
There are many ways to invest in this precious metal among which is to own it in its physical form. One of the physical forms of this precious metal is coins.
While you may know some of the best gold investment coins, there are certain important things you need to be aware of before you purchase this product. Therefore, in this article, we will be discussing some of these important facts to ensure that whatever decision you make would be an informed one.
One of the most important things that must be properly scrutinized is the coin’s purity. There are two ways to measure gold’s the purity, fineness, and karat. However, karat is used more commonly. Gold’s purest form is 24 Karat. When gold is defined as 24 Karat, it means it is completely gold, 24/24. Similarly, 22 Karat means its 22 parts gold and 2 parts some other metal like zinc or silver.
When it comes to the second parameter of measuring gold, fineness is calculated as the pure gold’s weight compared to the gold’s total weight.
The reason for this parameter is that no matter how pure gold is (even the purest form 24 Karat), it could still have minimal impurities that could not be removed. So, 24 Karat equals 99.9 percent purity, while 22 Karat equals 91.66 percent pure.
Gold coins come in several purities from 18 to 20 to 21 and even 24 Karat. But, when people invest, they often prefer 24 or 22 Karat.
Another important thing to consider when getting gold coins is whether they are hallmarked. These products often have trademarks that verify their purity; this is known as their hallmark.
Therefore, it is a major way of confirming the product’s authenticity before you buy it.
The coin’s weight is also very important and must be verified before purchase. You would find products that weigh between 0.5g-100g. However, most people tend to opt for ones that weigh 10g and below.
Yet, the choice you make can still be solely based on your preference.
4. Making Charges
When compared with jewelry, getting the coins is still quite easier. As we have already said, these coins often come in varying weights, and they often have lesser making fees as opposed to their jewelry counterpart.
The charges often range between eight to sixteen percent.
To get back the profits of your investment, at some point, you would have to sell off your coins. To ensure selling them back will not be an issue, you may have to consider getting them from an online platform or a certified jeweler.
The coins should be packaged in packaging that would prevent any form of tampering. It would act as a protection against damage, fraud, and counterfeiting. If you intend to resell the coin, then it would be best not to open or tear off the packaging.
The price of this product is more than the price of spot gold. This is because these coins are minted by sovereign governments that often charge a manufacturing fee.
The price could range based on the product itself, its size, and the number being bought. Most dealers would sell an American Eagle 1 troy ounce coin between four to five percent above the melt or spot value. Also, the coins would be bought by dealers for about two to five percent lesser than the usual selling price.
Therefore, when looking to invest, you must make your findings to be sure you shop from credible dealers that would offer you a great price.
When you buy coins, they should get shipped and received by you in ten to fourteen days, barring any problem. But, if the seller has any problem at purchase time, then the seller should let you know that your delivery may be delayed.
Also, find out how the dealer stores his products. It is recommended that you buy from dealers who use an authorized depository that is unaffiliated to them rather than a dealer that stores their products. This is especially true if you intend to get a huge quantity.
If you get the product upon purchase, then you must be careful while transporting them. You could use a briefcase; this would be a lot easier and secure. Alternatively, you could put them in your purse or pocket, just do not keep them where they can be seen, like your hands.
When you go out of the dealer’s store, ensure you watch your surroundings. If you spot any suspicious person, then you could go back to the store and wait them out. If you do not feel comfortable walking to your car alone, you could ask your dealer to walk you.
9. Collector vs. Bullion Coins
As someone looking to invest in this product, you must know the difference between a collector and a bullion coin.
Bullion coins values often fluctuate based on gold, platinum, silver, and any other rare coin price. They can also carry a collector premium which is usually based on the current demand of the market and historical supply.
Some United States circulated precious metal coins may be available (readily) for a premium above the bullion ones. You can visit here https://www.thesprucecrafts.com/circulated-coin-definition-768531 to learn how to identify circulated coins.
Yet, when these same products are in superb condition, they may have a higher value. High-quality, accurately graded rare coins have always had a strong market.
A gold coin investment is often considered a good type of investment. However, there are some important things that everyone who wishes to make this investment must know. In this article, we have discussed some of these things, from price to delivery, purity, weight, selling, and so much more.