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Investing in Bullion and Collectible Gold Coins
With the price of gold at record highs and the U.S. economy on the downslide, it’s no wonder that many investors are setting their sights on gold to hedge against the falling dollar. Many investors think gold bars are the most reliable and cost effective approach to buying gold, but gold coins offer benefits that bars do not because of their smaller denominations and viability as currency.
The first gold coins were made by King Croesus of Lydia in approximately 560 B.C. These coins were not pure gold, but were made from electrum, a natural alloy of silver and gold. When the process later became more refined, coins of pure gold and silver were created. The use of these coins spread to many civilizations, including the Greek and Roman Empires and, later, throughout European countries.
Gold coins typically cost slightly more than their gold content is worth, because a 4 to 8 percent premium is added for minting and distribution. However, coins may make up for this added cost because they are easier to sell and manage and are more widely collected than gold bars. While minted gold bars typically come in weights between 1/10 of an ounce and 20 ounces, coins range from 1/20 of an ounce to one ounce. Read Full Article
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About the Author
NuWire Investor strives to fill that information gap and educate and update investors on the news, trends and opportunities in the alternative investment marketplace. As a media source, we are not selling products or services. We simply provide research and analysis to help investors in their due diligence and even give them new ideas. NuWire Investor seeks to make quality information about alternative investments easily accessible. http://www.nuwireinvestor.com/
Gold Bullion Buffalo | Feb 20, 2008 | Reply
Interesting…I was under the impression that the 4 to 8 percent markup from the gold content had something to do with the coin’s rarity.
Sell Scrap Gold | Feb 24, 2008 | Reply
Would now be a good time to invest in gold with a $100-200 “anxiety mark-up.” It kind of seems like gold can’t get that much higher throughout the year.
Tony Lee | Feb 3, 2009 | Reply
Great info on your site about investing in gold bullion and coins, very informative.
From what I’ve experienced in my search for Gold bars and coins, they (Bars) are not nearly as popular as gold bullion coins. However, purchasing gold bullion bars gives investors gold bullion at bullion prices, which are much lower than the prices at which gold coins sell.
Older Coins however, do have the rare, vintage values to consider as well. One must weigh rarity over current gold prices when considering “bar” or “coin” investing.
One thing is for sure, Gold IS a great investment!
Tony