Gold Prices
As novice investors explore the many options that gold investment affords, they may initially be confused by seemingly drastic variations in gold prices, so the following is a brief overview to acquaint novice investors, and prospective investors.
TWO TYPES: Generally, there are two types of physical gold investments, bullion and rare coin.
BULLION: Used for short-term profit gains, and also for Precious Metal IRA’s. Bullion contains no numismatic value, and prices for bullion usually hover slightly above the current gold spot price. Short-term holding periods for bullion are typically for 14 months, or less. Bullion comes in bar form, and as bullion coin.
BARS: Reputable names like Johnson Matthey, Credit Suisse, and PAMP Suisse, are recommended for purity and liquidity.
BULLION COINS:(22 Karat): American Eagles, and South African Krugerrands 24 Karat coins: American Buffalos, Canadian Maple Leafs, Australian Kangaroos, Koalas, and Lunar Coins, as well as Chinese Pandas
RARE COINS: $20 Lady Liberty, and $20 Saint Gaudens, 22-Karat gold coins. Also referred to as DOUBLE EAGLE COINS. $10 Lady Liberty’s and $10 Indian gold coins, also known as EAGLE COINS.
$5 Lady Liberty’s and $5 Indian coins, also known as HALF-EAGLES
$2.5 Lady Liberty’s and $2.5 Indian coins.
There are also other more obscure rare coins, like $4 Stella’s, and 1855 Indian Head Dollars, but the aforementioned coins are the most widely traded rare coins among American investors. Rare coin gold prices are markedly higher than bullion coin prices, as rare coins’ inherent numismatic value generally appreciates over time. Rare coins, whose numismatic value has been officially graded by either the PCGS (Professional Coin Grading Service), or the NGC (Numismatic Guaranty Corporation), command an even slightly higher premium. Investors are encouraged to contact one of our friendly specialists, who offer institutional discounts on bullion and rare coin.
Shawn Cunningham
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