When you determine to buy gold bullion coins, you're committing to a decision that may well employ a positive affect the preservation of your future buying power. But as long as you really pay an acceptable price!
Too many novices, buying gold bullion coins for initially, overpay & subsequently must wait quite a while to see "the return of these investment" (Will Rogers!).
Gold Bullion coins are coins whose value is dependant on their intrinsic metal value. Not on any "coin collecting value" (in spite of what some dealers might try and persuade you!).
Normally they trade for a "premium over spot" ;."Spot" is the buying price of the metal in the "spot" market and is widely reported on the financial channels, in addition to daily in several newspapers Invest in Gold Bullion Coins. Some websites carry the graphs "live" (though often with a slight time delay). Typically, bullion coins sell for reduced all the way to 10% above "spot"- but this number varies with respect to the type, quantity and size of bullion coins you determine to buy.
For example:
To begin with, the sort of coin: The premium above spot is generally lowest on Krugerrands. For a one-ounce gold bullion Krugerrand, you ought to NEVER- pay more than a 10% premium above the spot price.
Ignore talk of "beautiful collectible coin" ;.This is a bullion coin pure & simple.
For half-ounce coins the premium is greater; a half-ounce gold bullion Krugerrand needs to have a maximum price above spot of 12%. Again- that's it- don't be deceived!
Next, quantity:
In the event that you order more gold bullion coins, you are able to expect a cost nearer to the spot price of the metal e.g. in the case of Gold Sovereigns, if you're to purchase 100, expect to pay for only 7% above spot.
Finally, how big is the coin- small coins tend to hold an increased premium above the spot price, as noted above in the Krugerrand example. That's why I'd always advise anyone to save a little longer & try and buy a one-ounce coin as opposed to buying two half-ounce coins (or 10, tenth-ounce coins...).
The numbers I've quoted are designed to offer you a sense of the 'order of magnitude' of things to expect. I get fed up of hearing stories of first-time coin buyers paying DOUBLE what they need to have.
So to summarize. Buying gold bullion coins can be one of the finest methods to preserve your wealth in these uncertain times- but as long as you don't get overcharged at the outset. Keep an eye on the gold price and do your sums.
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