Saturday, April 26, 2008

GOLD INVESTMENT INFORMATION

Gold Investment Information
Information on gold coin investment
Gold investment coins provide hedges against currency debasement and devaluation. Yet when investors search the Internet for information about gold investments, they often are confused by the many sites that promote numismatic and collector coins, which sell at high premiums to their gold content.
Gold bullion coins, on the other hand, sell at small premiums over the value of their gold content and make the best gold investment. This website attempts to clear up any confusion by offering information on gold, by explaining the advantages of bullion gold coin investments over numismatic coins, and by discussing the attributes that make gold bullion coins the best gold investment.
Owning gold as investment
Americans regained the "right" to own gold bullion on December 31, 1974. Previously, since President Roosevelt's 1933 "gold call-in," Americans could own only numismatic coins whose prices were determined more by collector interest than by the value of their gold content. Numismatic and collector coins sell at huge markups, sometimes at prices many times the value of their gold content. Bullion gold investment coins sell at small markups over the value of their gold content.
The 1974 restoration launched a new era in gold investments. Trading in restrikes of the Mexican 50 Pesos and Austrian 100 Coronas bullion coins became quite popular. However, it was the introduction of South African Krugerrands that laid the foundation for today's vibrant gold bullion coin market.
The best-selling gold investment coins
Today, American Gold Eagles are the best selling gold investment bullion coins in the world. South African Krugerrands, although no longer imported into the U.S. for the investment market, remain immensely popular, with thousands of them trading daily in the U.S. Krugerrands sell at much smaller premiums over spot than Gold Eagles. Still, Gold Eagles are the best selling gold bullion coins in the world, as millions of investors have made them their preferred gold investment.
Other gold investment coins
Canadian Maple Leafs , once nearly as popular as Gold Eagles, have fallen into disfavor as gold investments because the coin's design results in the coins being easily scratched and damaged. Mexican 50 Pesos and Austrian 100 Coronas are lesser known gold bullion coins, which often can be bought at smaller premiums than Krugerrands, make excellent gold investments. Gold bullion investors seeking bargains should always inquire about Mexican 50 Pesos and Austrian 100 Coronas availability.
Gold Eagles and Krugerrands carry greater appeal than 50 Pesos and 100 Coronas for several reasons. First, they contain one ounce of gold. By contrast, the 50 Pesos contains 37.5 grams (1.2057 ounce) and the 100 Corona .9802 ounce. Americans are more comfortable with ounces than with grams or fractional ounces.
Additionally, Gold Eagles and Krugerrands have their gold contents stamped on them in English. In contrast, 50 Pesos have "37.5 Gms ORO PURO" stamped on them and 100 Coronas do not have their gold content on them.
Less-known gold investment coins
Less-known gold investment coins include Australian Kangaroo/Nuggets , Austrian Philharmonics, and Hungarian 100 Koronas (sister coins to the Austrian 100 Coronas).
Although there are other gold investment coins, mostly old European coins, they should be avoided by most investors. Old European gold coins rarely have their gold content stamped on them.
Gold investments for the long-term
Investors interested in long-term gold investments should take a close look at The Perth Mint Gold Bullion Lunar Series 1-oz gold coins, which are limited production coins that can be bought at bullion coin prices. Because they are limited production coins and part of a popular series, the Lunar Series Gold Bullion 1-oz coins may achieve collector premiums. In contrast, Gold Eagles, Krugerrands, and Gold Maples are unlimited production gold bullion coins that are unlikely ever to pick up collector premiums.
We encourage you to follow the links on this page for specific information about the various gold bullion coins available as gold investments. After perusing the pages, please call if you have questions or would like to discuss gold as an investment. We take calls 7:00 a.m. to 5:00 p.m. MST, Mondays through Fridays

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