Gold coins increase in value with production suspension

Written by admin on April 2, 2009 – 9:30 pm -

The spike in premiums for gold coin transactions followed last week's announcement by the United States Mint that it has suspended production of 1-ounce American Eagle gold coins until early December because it has depleted its inventory of gold.

"It's widening the spreads a little and pushing them up," said Ben Chew of Rogue Valley Coin & Jewelry Exchange.

On Nov. 6, an American Eagle coin was trading for $55 above the commodity price (about $1,040 an ounce), while dealers were paying sellers $15 over the price, Chew said.

"Now, it's going to cost $75 over the price (about $1,180 an ounce) to get an Eagle, but we would pay $30 over the price of gold," he said. "Both the buying and selling have moved up, reflecting the scarcity of the coins. The harder to get them, the more you have to pay for them."

When bullion coin blanks run out, it's not a matter of simply going to the warehouse or ordering an overnight shipment.

"They do not have an unending supply of gold and silver," Chew said. "You just can't walk into Fort Knox and start loading up on bars."

There are six major wholesalers bonded to handle the precious metals, who in turn feed secondary wholesalers and some retailers.

It generally takes a week or two for dealers to receive shipments and holiday orders generally take a little longer.

Gold traded for nearly $1,180 per ounce in New York Monday, as the U.S. dollar continued to weaken. Five years ago, on Dec. 1, 2004, gold was selling for about $450 an ounce.

The Mint's suspension has spurred demand for other gold coins as well.

"It has caused the premiums on the other precious coins such as Krugerrands and Maple Leafs to go up," said Gary Burton, owner of Burton's Rare Coins in Grants Pass.

An American Buffalo gold coin at Burton's would cost buyers a premium of about $70 over the spot price. Dealers are paying $25 to $30 over the spot price.

"When they begin striking the coins again, the premiums will come down," Burton said. "But I'm not sure for how long."

The Mint said it would resume striking American Eagles early this month, but there has been no announced date.

"It's up to the Treasury (Department)," Chew said. "I imagine they will start minting as soon as they have a supply of blanks. When you get into something like the U.S. Mint, politics and a lot of other factors enter into it."

There has been a steady uptick in buyers, he said.

"There are still people needing money and selling, but there are a lot more people that do have money and are taking it out of banks and the stock market."

November gold sales topped 124,000 ounces, a 7 percent gain over the 115,000 ounces sold in September and October, the Mint said.

American Eagles are made from 22-karat gold and weigh 1.1 ounces, while American Buffalo coins are 24-karat gold and 99 percent pure, Burton said.

"They are still making the Buffalo coins," Burton said. "Worldwide, most people like pure gold."


December 02, 2009

Source: The Daily Tidings


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What You Need to Know Before Buying Gold Bullion Coins

Written by admin on February 11, 2009 – 10:14 pm -

With the gold prices soaring at record highs and the U.S. economy in turmoil, smart investors are turning to gold to hedge against the falling U.S. dollar. Some would think solid gold bars are the most reliable and cost effective method of owning gold. However, gold coins actually are better option in terms of protecting against deflation and financial uncertainties.

Gold coins typically cost slightly more than their gold content value (spot price), because a small premium or markup (4% to 10%) would be added for minting and distribution cost. But gold coins are easier to trade and manage than gold bars because of the smaller denominations and sizes. In addition , gold coin is classified as a collectible, which means that profits are not taxed as capital gains but as ordinary income. Long-term capital gains are taxed at a 15% rate for those in the 15% bracket, but gold investments can be taxed at rates of up to 39.6%. Those considering putting their money into gold coins should consider what these rates might do to their returns.

Gold Bullion Coins

There are two main types of gold coins: bullion coins and collectible coins. Gold Bullion coin is favorite among gold investors, because its value comes primarily from the worth of gold content itself rather than from a face value. Gold bullion coins are priced and sold according to the weight of gold the coin contains, plus the additional premium mentioned earlier. Some of the most popular gold Bullion coins today are American gold Buffalo coin, 1oz Krugerrand gold coin and Mexican 50 Peso gold coin.

Shop for gold Bullion coins now!


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Gold Investment FAQ

Written by admin on February 11, 2009 – 9:12 pm -

Q. What kind of gold should I buy?

A. What you buy actually depends upon your goals, or why you want to buy gold. If your goal is simply to capitalize on gold price movement, then gold bullion coins will be the best option for you. If you are interested in long-term asset preservation, then you might want to include pre-1933 European and American coins that carry small premiums, which offers even greater degree of safety than gold bullion coins.

Q. When should I buy gold?

A. With the world economy in turmoil, the best time to start buying gold is now. Gold has been proven recession proof. Buying gold coins is the most practical method of owning physical gold and protect personal assets from instable economy. It is better to be a day early than an hour late.

Q. What percentage of assets should I invest in gold?

A. The general rule of thumb is 10% to 30%; and how high you go within that range depends upon your analysis of the current economic, financial and political situation.

Obviously, the individual with a low level of concern about the current economic situation will tend toward the 10% level. Those with lagging confidence in the way things are going will gravitate to the higher end of the range. In recent months, we have had a number of investors go substantially over the 30% figure based on their own reading of the economy and the various investment alternatives available.

Q. What's the common mistake investors make when starting gold investment?

A. The common mistake that investors usually make at the begining is buying a gold investment that bears little or no relationship to his goal. Take safe-haven investors for example. Most often they simply want to add gold coins to his or her portfolio mix, but too often they ends up with a leveraged (financed) gold position or a handful of exotic rare coins instead.

Q. What's the best kind of gold as safe investment?

A. If you want to protect your assets against inflation, deflation, stock market weakness and potential currency problems -- in other words, if you want to hedge financial uncertainties, there is only one portfolio item that will serve you in all seasons and under most circumstances -- gold coins. With the world economy in turmoil and gold prices soaring today, I highly recommend you investing in gold coins.


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Where to Buy Gold Coins?

Written by admin on February 11, 2009 – 8:47 pm -

Gold coin is definitely favorite of coin collectors with an eye toward investment. Some people happily collect coins from different countries. Some collectors can spend thousands of dollars on gold and silver coins, and rare early coins from the 1800's and early 1900's.

Gold CoinsThere are various sources to purchase gold coins today. You can visit local coin shops, or order from mail catalogs. In my opinion, however, the best place to find best deals of gold coins is online. Online auctioning has become a very active market for purchasing gold coins, thanks to the Internet. Online auction sites such as BuffaloCoin.com, KrugerrandGoldCoins.com and MexicoGoldCoin.com offers a wider selection of gold coins and up-to-the-minute deals comparing to the traditional coin retail shops.

Online auctioning is a very effective – if not excellent - methold to purchase gold coins. It is very important that you set a fixed price on the coin you are about to bid on. Auctions can turn to be very emotional and aggressive. Discipline yourself from bidding more than the ceiling price you have set is the key.

Gold coin buying is not difficult. All you need is to research and look for the best product available. While there are many real gold coin enthusiasts in the internet, there are also some people who are posing as gold coin collectors and are just looking to rip you off. Therefore, it is extremely important to always purchase gold coins from a reputable seller. You can look up sellers' feedback score at most online auction sites. You can also view comments left by previous customers. Ideally, you would want to do business with a seller with a feedback score of 90% to 100%. But you have to take consideration of  seller's feedback number as well. The higher number of feedbacks, more confidence you can have in the seller. Read more...


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Hot Gold Coins for 2009

Written by admin on February 11, 2009 – 7:58 pm -

Gold coin investors are celebrating the soaring gold prices that have been seen in past years. For the year 2009, gold coin collecting trend will remain strong. With the world economy in turmoil, gold investment is the safest yet most effective way to protect ones' assets during uncertain financial times. American gold Buffalo coin, American gold eagle, South African gold Krugerrand and Mexican 50 gold Pesos are the hottest items among seasoned gold investors and collectors.

Gold Buffalo coin, as the first 24-karat gold Bullion coin released by the United States Mint, has become one of the popular collection items among gold coin investors since the coin went for sale on the market back in 2006. So far, 663,015 American Buffalo gold coins have been sold since 2006 (2006 gold Buffalo coin: 337,012; 2007 gold Buffalo coin: 136,503; 2008 gold Buffalo coin: 189,500). The gold Buffalo coins are so popular, that all 2008 American Buffalo Gold Uncirculated coins for collectors have sold out, according to the United States Mint online store last December.

Gold Coins Trend

South African gold Krugerrand and Mexican 50 gold Pesos will also continue being the popular options for gold coin investors, because of small markups over spot. Both gold Krugerrand and Mexican 50 Peso gold coin carry small premiums. This means these coins cost less per ounce than the standard American Eagle Gold Bullion and thus give you more gold for your money.

In addition, gold coins with rara date as well as early gold coins are expected to go strong through 2009. The better they look, the higher their value.

Shop for gold Buffalo coins now!


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Gold Investment Tips

Written by admin on February 10, 2009 – 10:39 pm -

For centuries, gold has proven to be the safest, yet most effective way to protect personal wealth against the falling economy. With the U.S. economy on the downside, have you ever considered buying gold? After all, gold as an investment has been resorted by the wealthy families in Europe and Asia for centuries.

Gold prices have seen an upward trend in the past 5 years. Recently the gold price has surged past the $900-an-ounce mark, hitting a record high in years. With the recent financial turmoil, experts point out that gold prices are likely to continue rising steadily in 2009. This investment opportunity is showing an upswing again. With uncertainty in the stock market and a declining US economy, more and more smart investors are turning to gold as a safer investment option.

Key to gold InvestmentIf you would like to invest in gold simply to capitalize on gold price movement, gold bullion coins would be the No.1 option for you. Universally recognized and easily sold, gold Bullion coins are an excellent investment option. You can start buying gold Bullion via gold American Buffalo coin, American gold Eagle, or Canadian Maple Leaf. South African Krugerrand, as the World's first gold bullion coin, is extremely popular among seasoned investors as well.

Shop for gold Bullion now!


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