Five Ways to Be Smart About Your Gold Coin Investment

Gold and silver bullion

We all love that the price of gas is lower than it’s been in years right now. However, when gas is low, it’s often an indication that the value of other commodities are on a downward spiral as well. Along with the price of crude oil, the prices of metals like copper, gold, and aluminum are lower now than they’ve been in the last four years. This is bad news for miners and producers, but good news for investors (unless your whole nest egg is invested in commodities that are tanking at the moment).

At $1,093 per ounce, the price of gold is lower now than it has been since 2009, when it was $972 per ounce. If you are interested in getting into the gold and silver market, bells should be ringing in your head right now. Buying gold during this temporary dip could make you a lot of money when the market goes back up. If you are new to the gold coin investing market, here are some tips on making a smart investment:

  1. Buying gold in Canada or the United States is a safe bet. The American Eagle gold bullion coins’ authenticity is backed by the US Mint, which makes it a reliable investment. It is also convenient to American investors because American gold coins can be invested in IRAs, so that precious metals storage isn’t even a concern. Canadian gold coins are 24-karat, which is among the purest gold coins offered on the market. Both American and Canadian gold coins are extremely common, which makes them easiest to sell when you want to cash in on your gold investment.
  2. Compare prices from a few dealers. Although the US Mint produces the American gold coins, they don’t sell them directly to investors. Gold coins have to be purchased from an authorized dealer, who puts a slight surcharge on the going rate of gold. You can find gold coin dealers near you on the US Mint’s website. Using the list dealers in your area, ask around and find who’s prices are lowest. Many gold investors advise not to pay a gold coin dealer more than 5% above the going gold rate.
  3. Be smart about your precious metals storage. Because of it’s liquidity, gold is a highly sought item in thefts. First and foremost, do not talk about how much gold you own. The more people who know about your fortune, the more likely you are to be robbed. Ideally, you should utilize safety deposit box or bank vault for precious metals storage. If your investment is sizable, diversifying it in more than one bank is a good idea.
  4. Avoid rare coins. Sticking with standard US mint or Canadian gold coins is a good way to ensure the value. If you delve into the world of rare coins, it gets a lot more complicated. Coins that look identical can have starkly different values, you will need expert appraisers and certificates that verify its value. This adds up and creates an extra hassle that newbies in the gold market might not want to deal with.