What Gold And Silver Coins To Avoid?

There is no single coinage that is right (or wrong) for every investor, in the same way that there is not one profession, automobile or spouse that would comfortably fit every person. There are over 3,000 gold dealers in the United States alone, and each one has a specific product to promote; bullion dealers want to sell bullion, rare coin enthusiasts want people to collect numismatics, and so on. How can one see through advertisers’ smoke and mirrors to determine which types of gold and silver coins to avoid?

There is no surefire way to know beforehand whether or not an investment will be a winner, and understanding that there is risk involved with any gold and silver coin investment is of the utmost importance. History has shown us that certain gold and silver investments perform better than others depending on variables such as:

  • General trend of the US economy and US Dollar
  • Length of time the coins are held
  • Commission paid to broker on the original investment and the per-ounce price of the precious metal at the time of purchase

If one hopes to take advantage of rising precious metal prices by playing the market month-to-month then collectible coins should be avoided. They have a higher buy and sell spread (the difference between the dealers’s bid and sell prices) and it can take over a year to break even on such coins. Reputable gold and silver exchanges usually advise against short-term speculation because prices can fall just as quickly as they can rise.

Investors who buy precious metals for security have a long list of gold and silver coins to avoid. Partial-weight European coins are sold at irresponsibly high margins even though they have no numismatic value, and standard bullion coins (think American Eagles, Canadian Maple Leafs, South African Krugerrands, etc.) offer no protection from government confiscation. Unlike certified gold and silver coins, raw bullion pieces are only as profitable as the gold they contain. Since there are literally hundreds of gold and silver coins on the market, investors may find it helpful to browse the free GoldSilver.org coin guide or contact one of our gold and silver coin experts today.

Get Your Complementary Award Winning Guides Below

 Publish Real Money Magazine

 Publish Gold Investment Magazine

 Publish IRA 401K Kit Magazine

 Real Money Magazine