Many people are considering buying gold for reasons such as rising federal debt, currency devaluations and economic uncertainty. Gold has risen each year between 2001 and 2011, and while buying gold isn’t for everyone, many individuals are taking the time to learn whether buying gold makes sense for their portfolio.
As one of the oldest forms of money, gold is often referred to as a “safe-haven” asset and owning it is considered a common sense diversification strategy. But if you’re learning how to buy gold for the first time, you may have questions about the process, such as: What are the advantages of buying gold coins? What are the different types of products available? How much should I buy?
You may be surprised at how many options there are. There is a wide variety of gold coins available dating from the 1800s to today's gold bullion American Eagles. Here are a few types of coins you may want to consider:
Gold bullion coins may be acquired in a variety of sizes. Smaller gold coins, known as fractional coins, offer a lower price point when compared to one ounce coins and provide greater flexibility when it comes to liquidating or distributing the coins. These gold coins can be acquired in 1/10 ounce, 1/4 ounce and 1/2 ounce sizes and include some of the most recognizable gold coins in the world. For example, the American Eagle, one of the most popular investment-grade gold coins, can be acquired in fractional sizes and is guaranteed by the U.S. Government for its weight, content and purity.
In 1865 France, Belgium, Italy and Switzerland entered into the Latin Monetary Union which regulated the weight, fineness, shape and exchange rate of gold and silver coins. The treaty also provided these identically minted gold and silver coins would circulate freely within the monetary union. Other countries such as the United Kingdom, Germany and Austria also minted gold coins which circulated in everyday trade. These 19th and 20th century coins are popular today for their smaller size, artistry and historic significance.
The U.S. Government issued gold coins from 1795 through 1933. These coins ranged in denomination from the $1 coin to the $20 “double eagle.” Minted for use as everyday currency, their original mintages have been greatly reduced by official and private sector melting.
The most popular historic U.S. gold coins include the $20 coins with the liberty head and Saint-Gaudens designs. Minted from the 1840s to the 1930s, these large, beautiful coins contain nearly one full ounce of pure gold. In addition to their hefty gold content, limited mintages, and historic significance, a number of these coins have been independently graded and certified.
Ultimately, there is no “one size fits all” approach to buying gold. Conduct your own research before you buy so you can determine what products will work best for you.
SILVER PRICESApril 18, 2012 Gold prices were lower as European markets continued to deal with concerns over Europe’s sovereign debt. Worries about Spain’s debt persist despite the nation exceeding its volume target at a bond auction on Tuesday. Shanghai CIFCO Futures analyst Li Ning said that gold market sentiment remained cautious ahead of a key policy [...]
December 27, 2011 Gold prices were initially higher on a lower dollar on Tuesday, but later fell in thin holiday trading. Analysts were expected to follow the Italian bond auctions later in the week after the 10-year Italian bond interest rate rose to a level generally viewed as unsustainable. European Central Bank (ECB) executive board [...]
August 30, 2011 The price of gold rose ahead of the Fed releasing minutes from its August policy meeting while the central bank’s members were split over what steps to take to bolster growth. However, markets reacted positively to the Fed’s decision to extend its annual meeting to two days. “For now, the Fed has [...]