Which gold and silver coins are best for a short-term investment?

A “short-term” gold and silver investment is one that is purchased with the intent of liquidation within a year or less. Individuals who make such investments try to “time” the market by buying metals when they appear undervalued. These traders sometimes buy and sell their gold and silver several times per year. It is risky to invest in physical gold with such a strategy because large investments are required to see sizeable profits and shipping fees can add up quickly. If physical possession metals are a necessity then bullion bars are usually the logical choice because they are globally-liquid, easily-recognizable and costs are lower than those of coins. However, investors who insist on purchasing gold and silver coins as short-term investments should focus on the following products:

-Gold South African Krugerrands
-Gold/Silver Canadian Maple Leaf coins
-Silver rounds

The items listed above usually have the lowest premium over spot price. Krugerrands are only minted in gold and are available at four to five percent above the gold spot price. Maple Leaf coins are available in pure gold and silver and trade around five percent over spot. Silver rounds are produced by a number of companies and are usually sold for less than two percent over the spot price, but these pieces may not be legal-tender in the event of a currency crash.

Why are coins like Double Eagles Indian Heads and Peace Dollars coins not recommended for short-term investors? These and other rare coins can be much more profitable than bullion over periods of two years or more but rare coin prices move in fits and starts so it is difficult to time the rare coin market as is possible with the bullion market.

It is vital to understand the difference between the two types of gold and silver investments. Rare gold and silver coins differ in value according to their mint date, condition and country of origin, but all gold and silver bullion products have the same degree of profitability because they are tied exclusively to spot price movement. There is no financial advantage to purchasing more expensive bullion pieces like Chinese Pandas and Australian Lunar coins because dealers tend to pay spot price for all bullion products regardless of the coin’s specifications.

Investors who have more questions about gold and silver bullion coins or would like to trade metals are invited to call GoldSilver.org at 1-800-394-3337 or request a free copy of Real Money Magazine below to learn more about gold and silver investing.

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