For Serious Gold And Silver Investors Only!

| March 14, 2014 | 0 Comments

Today we’re continuing our series on coin investing. 

As you may remember from my last article on the subject, coin demand is at all time highs.  In fact, the US mint sold 42.6 million American Silver Eagles in 2013- an annual sales record for the institution.

Why such a surge in investor interest?

Quite simply, gold and silver are trading at a deep discount to prices seen in 2011 and 2012.  As a result, buying coins at current oversold levels offers a considerable long-term profit opportunity.

With that said, how do you get started?

Before you contact a coin dealer, here are a few things you need to understand…  

First of all, there are two types of coin investing- bullion and numismatic (rare coins). 

To decide which one is right for you, figure out what your goals are.  Do you want ownership of physical metals to capitalize on potential price appreciation in gold and silver? 

Or are you interested in the historical qualities of rare coins?

Your answer will determine what kind of coins you need to search for.

If you feel numismatics might be your cup of tea, do plenty of extra research outside of this article.  I’ll be the first to admit I am not an expert in rare, collectible coins.  Numismatic coin investors’ prime focus is on age and grading of a piece- a complicated and rather subjective task.

For more information on numismatics and collectible coin investing, I recommend you visit the Federal Trade Commission’s website before you spend a penny.

If you’re looking to gold and silver bullion for price appreciation purposes, keep reading…

In my opinion, investing in physical bullion is a must for every balanced portfolio- especially considering the current state of the global financial system.  I won’t go into detail here, but there’s still considerable worry surrounding the Federal Reserve’s long-term quantitative easing plans – namely inflation.

And as you may know, one of the best ways to hedge against inflation is through gold and silver bullion.

Speaking of bullion…

There are various types, and it’s very important you realize the difference between them.  

A lack of understanding in this department can lead you to overpay on your investment- or worse!

One of the essential things you must realize when buying gold and silver bullion is that it’s made by both private and government mints. 

Unlike the privately minted variety, government minted bullion offers an official guarantee of weight and purity.  But due to this valuable guarantee, you can expect to pay a higher premium to acquire government minted bullion. 

In other words, the price you pay for government minted bars and coins will likely be well above the market value of the metal contained in the bullion.

But privately minted bullion does have its advantages…

Due to the lack of a government guarantee of authenticity, privately minted bullion carries a low purchase premium.  The price you pay for privately minted bullion should be very close to the current spot (market) price of gold or silver on that particular day.  Due to this factor, privately minted bullion is often the first choice for investors looking to buy bullion in bulk and keep transaction costs low.

Bottom line…

Buying physical precious metals can be a complicated task for beginning investors.  My goal is to supply you with essential information so you can make an informed and educated decision on your purchase.

Believe it or not, we’re just scratching the surface with what we’ve covered today.  So stay tuned to the Dynamic Wealth Report for additional insight on physical gold and silver investing!

Until Next Time,

Justin Bennett

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Category: Commodities

About the Author ()

Justin Bennett is the editor of Commodity ETF Alert, an investment advisory focused on profiting from the ebb and flow of important commodities via ETFs. The commodity veteran and options specialist is also a regular contributor to the Dynamic Wealth Report. Every week, Justin shares his thoughts with our readers on a variety of commodity-related topics. Justin is also a frequent contributor to Commodity Trading Research’s free daily e-letter. And he’s the editor of another highly successful and popular investment advisory, the Options Profit Pipeline.

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