Investing Basics
- History of money
- Gold to protect your wealth
- Gold as a currency depreciation hedge
- 10 reasons to buy gold
- 10 reasons to buy silver
- Investing in gold for the first time
- How much gold to have in your portfolio
- The importance of owning physical gold
- Investing your company's cash in gold
- Gold and silver purity
- Giving gold as a gift
- Fiscalité
- Gold vs. Bitcoin
Bars
- Bullion bars and premiums
- Cast bars vs minted bars
- Assay
- Counterfeit gold
- Counterfeit silver
Coins
- Bullion vs numismatics coins
- BU (Brillant Uncirculated)
- Coins premiums
- Legal tender coin
- Privy mark
- Differences between coin and round
Ownership
- Direct ownership
- Mutualized gold
- Dedicated gold
Storage
- Storage outside the banking system
- Secure storage companies
- Home storage
- Safe deposit box rental
Gold & Silver in USA
- IRA vs. 401(k)
- Local coin shops
- The Federal Reserve
- Mining in the United States
Gold Market
- Troy ounce
- LBMA
- Good delivery bars
- GOFO
- COMEX
- NYMEX
Paper Gold
- Futures contract
- Certificates
- ETFs
- Mining stocks
More Info
- Key events in gold market history
- Gold origin
- Gold in art
- Gold in religions
The world of precious metal investment is split somewhat down the middle, with one half favoring gold and the other half silver. The majority of these buyers purchase coins, simply because they are available for close to spot, just like bars, they carry occasional premiums, and they’re easier to sell when it’s time to cash an investment.
What are the differences between these two, and what sort of coins can and should you buy?
Gold and silver coins are minted in a similar way. They use the finest metals which are very rarely cut with anything else. These metals are strong enough to not require the addition of anything else, and the only reason you see numbers such as .999 and .9999 is because absolute purity (100) is nearly impossible to achieve in the refining process. Gold and silver coins are typically sold in any weight from 1/4 ounce to 1 kilo, and the most popular weight for both is 1 ounce.
There are two types of coins available, bullion and numismatic. Bullion coins are acquired for their precious metal content only and are often available for much less. Numismatic coins may or may not have as much inherent value, and are often sought for their rarity. Which one of these is best for most-profitable investment?
Whether you choose bullion coins or numismatics will depend on what you hope to achieve from your investment. In many cases numismatics carry a larger risk and have a huge premium, much more than their inherent value. You are relying on what is essentially a non-existent value in order for your investment to remain stable. This value is imposed on it by the laws of supply and demand, by what collectors are willing to pay.
With bullion coins, there will always be value. You are paying for the gold or silver content only, without concern for trend or fashion. Gold and silver have been valued by humans for thousands of years, and will likely continue to be valued for thousands of years to come.
The trick is to always focus on the scrap value, as opposed to any premiums. You can do this by choosing widely-circulated bullion coins and buying in bulk. For instance, we sell Monster Boxes of coins which allow you to acquire silver coins for close to spot. A Monster Box is a large, well-made box containing tubes of coins. These are created by the mint and shipped to dealers worldwide. At GoldBroker, we don’t remove the coins from these boxes or even expose them to air. We simply store them or pass them on directly, which means you get them fresh from the mint.
Some of the best buys in this regard include the 1 Ounce Philharmonic Coins and the 1 ounce Maple Leafs, both available in boxes of 500. When you calculate the individual price of each coin, it is very close to spot, which means that you’ll only need a slight increase in the price of silver to start realizing profit. We also stock gold coins in bulk, packed in similar ways, offering deals close to spot on everything from South African Krugerrands to Canadian Maple Leafs. These carry the highest purity available in gold coins.
