Buying gold coins can be extremely rewarding and potentially profitable. But there are lots of precautions that one must know about before buying their first gold coins. These precautions could mean the difference between a significant gain or even a huge loss. Some of these precautions might not be as obvious as others.
The first precaution is that buyers must buy their coins slabbed or straight from the U.S. Mint. The chance of guying a fake gold coin is quite real. The perpetrators can very quickly produce a fake gold coin that costs $200 dollars in gold, but can sell for thousands. Lots of times the percentage of gold within these coin are suprisingly low set alongside the percentage of gold within the actual gold coin. Even when the coin is real, you are able to be ripped off. Gold dealers used to utilize a fine file to shave off a little gold off of each coin. By the end of your day, they would have a great deal of gold dust that they could sell later. So always buy them from the mint or slabbed by PCGS or NGC.
Lets say that you went along to a reputable dealer so you don’t have to bother about being ripped off. Well, they have their particular approaches to rip you off. They try to sell you a Gold Eagle with a guarantee. A standard Gold Eagle might select $115. But they may charge you $150 for a Gold Eagle that’s guaranteed to grade an MS65 or better. Heck, it might even grade an MS70! The issue with this is that all the Gold Eagles today would grade an MS65 or better anyways. They will all grade an MS68 to MS70. So even when it graded an MS65, MS66, or MS67, it could be worth anymore money anyways. Furthermore, these coins will never grade an MS70. The ones that could have graded an MS70 have already been cherry picked. Edelmetalle Shop Kasel These companies always provide you with a one month guarantee. When it doesn’t grade the MS65 which they guarantee, they will provide you with a refund if you only return the coin back to them in just a month. The issue with this is, it requires almost per month to grade a coin. And while you’re waiting to allow them to ship your coin back, it is likely to be at the very least per month for the whole process. But lets say that you allow it to be by the nick of time. After they receive your coin, they’ll refund your money. But, you’ve already lost $25-$35 dollars to grade the coin and you still have nothing to show.
Buying gold coins depends upon the gold market. If you do not be mindful, you might end up losing plenty of your money. You see that a certain group of gold coins keeps increasing in value and it never seems to stop going up. So you buy in hoping to create money. It goes up when gold goes up. In bull markets, these coins can go sky high. But once the gold rush has ended, these coins drop to pennies on the dollar. What happened? You bought the better date or common gold coin in the midst of its’rise. It went up with the buying price of gold. You didn’t obtain a rare gold coin because you didn’t have the extra $250K laying around. So you bought this better date for $25K and its’book value kept rising. When gold collapsed, so did your coin’s value. Now it’s worth $6K. What were you thinking about? It could never be worth a lot more because it’s only a better date or even a common date. It won’t recover until gold goes as much as those levels again. You might easily be waiting for 20-30 more years before it recovers. So you might as well sell it and use the money for something else.Read More