Gold Coin Investing
Gold coin investing can be one of the brightest investing strategies during times when the economy is in a downturn. This is due to the very scarcity of the metal. It is estimated that about two thousand five hundred metric tons of golden metal are taken out of the earth each year from various mining facilities around the world, but there is a need for over five thousand metric tons for various reasons. This imbalance continues the centuries old scarcity of golden metal, making its cost inch ever upward. Golden metal has always been the standard by which all other precious metals have been judged and was, until 1972, the standard by which the dollar was measured. Since the new millennium, the price of golden metal has continually risen, meaning the shortage continues and the price will continue to rise until demand and supply even out. Gold coin investing is one way a person can hedge against rising inflation and lower stock prices.
Gold coin investing is never highly recommended by investing experts to be the only investing strategy a person should employ. Instead, it may advisedly form from five to ten percent of a person's portfolio, but investing consultants may differ on this percentage, so check with your advisor before taking action. The fact is that owning some physical gold pieces may be a real advantage in the circumstance where access to other funds or monies is not possible. These circumstances could include identity theft, long and extreme power outages, and other situations. Too many people want God to act immediately on their behalf, but God is not bound by calendars or schedules. The Bible is filled with counsel to not get in a hurry, but to wait on God to act. "I waiteth for the Lord, my soul doth wait, and in his word do I hope. My soul waiteth for the Lord more than they that watch for the morning: I say, more than they that watch for the morning." (Psalm 130: 5, 6)
The actual process of gold coin investing is as easy as can be. Coin dealers are located all over the country and a person can just look a dealer up in the phonebook or online and then visit that dealer in person. If a person walks into a dealer knowing what to look for and knowing what price to pay, it can be as easy as choosing, paying for them, bundling them up and taking them home. If a person takes them all to a bank safe deposit box, then he may be subject to one of those aforementioned circumstances that could affect the bank, so at least some of the coins ought to be taken home and hidden in very discreet places. Do some investigation online to ascertain just where to safely hide some of those gold coin investing pieces. There are some very ingenious places to hide those things that are for your eyes only.
So then comes the decision of what kinds of gold coins in which to invest. There are a number of countries that have specially minted gold coin investing pieces that have one ounce of pure gold in their mix. There are four that are worth mentioning here. They include the United States Gold Eagle, the Canadian Maple leaf, the Australian Nugget and the South African Krugerrand. These have very small differences, and a potential investor should study them all carefully, but they are all excellent investment pieces worthy of exploration. These national bullion coins have some particularly attractive reasons for their investment purchase.
Consider first the idea of buying gold bars. Probably the closest many of us have ever gotten to one of these babies is some theft scene in a movie. Weighing in at twenty five pounds apiece, the thieves have to work very hard to get a few hundred of these loaded in the getaway van. And because they are worth about three hundred sixty thousand dollars each in today's world, it can be a little difficult to carry one of those things in a KFC restaurant and pay for four chicken dinners, expecting change in return. But consider how much easier dealing with single ounce coins could be when buying a now extinct Hummer. Put thirty of those coins in a grocery sack and lay them out on the counter in the dealer's showroom and see how fast they come down in price for the last of those dinosaurs.
There is a whole other world of gold coin investing called numismatics. These are the odd gold coin investing pieces sold all over the world but do not have the standards that the national gold bullion pieces have. Numismatics can be likened to taking a job as an electrician when one doesn't know the difference between an ampere and a volt because in either case it will not take very long to get killed with one's stupidity. The novice investor looking to get some leverage on the up and down economic flows of the world needs to stay with the nationally standardized gold coins until thoroughly indoctrinated in the intricacies of the numismatics world. Gold was once at thirty five dollars an ounce and hovered around that price for a very long time, but now nears the one thousand dollars an ounce range. It shows no sign of ever going down very far in price, so the only question is where to hide those coins in the house. I have heard a few in a full mayo jar is a pretty crafty place.
Double Eagle Gold CoinThe double eagle gold coin is said to hold one of the most beautiful monetary designs ever to grace the front and back of legal tender. The design for these golden pieces was created based on the artistry of Greek coinage by Augustus Saint-Gaudens. The quest for beautiful tender began in 1905 when President Theodore Roosevelt was touring the Smithsonian Institute and was mesmerized by the artistry on Greek coinage. The president pondered the reasons why his own nation's money was so bland and boring in design. The beauty of the Greek coinage launched a decision by the president to forever change the face of legal tender in the United States. He contracted an artist named Augustus Saint-Gaudens to develop a variety of coinage that would reflect the country's greatness. By 1905, the United States had become the most powerful nation in the world, and Roosevelt felt that the artistry on the nation's money should reflect that power. For a fee of $5,000, Saint-Gaudens produced a coinage collection similar to that of the ancient Greek collection. Unfortunately, Saint-Gaudens was not able to complete his work because he died of cancer. His Majestic Double Eagle $20 Gold piece is however, considered to be the most beautiful of American eagle gold coins, and the most appealing and sought after in the entire world. It is the most famous of all the artists work.
On the front of the piece, Lady Liberty is portrayed as walking toward the viewer into the dawn of a new day. In her right hand is a torch held high, and in her left is an olive branch. This olive branch is the same branch spoke of in the Biblical time of Noah and the flood. " And he stayed yet another seven days; and again he sent forth the dove out of the ark; and the dove came into him in the evening; and, lo, in her mouth was and olive leaf pluckt off: so Noah knew that the waters were abated from off the earth. And he stayed yet other seven days; and sent forth the dove; which returned not again to him any more" (Genesis 8:10-12). The olive branch symbolizes a new land, fresh and blessed of God. On the double eagle gold coin, the capital building can be seen in the background. At the top is the word "Liberty", and around the border are 46 stars representing the States of the Union in 1907. The settings for American eagle gold coins were taken from the artist's much acclaimed "Victory" sculpture that is currently held in the Sherman Monument in New York City's Central Park.
The reverse side of the infamous piece depicts an American eagle in mid-flight well above the sun's radiant beams. The inscription "United States of America Twenty Dollars" is arched across the top. When the president first viewed the double eagle gold coin, he knew it would be admired for ages to come. He was not aware, however, that his own cousin, Franklin D. Roosevelt would confiscate all privately owned gold a quarter century later, and that most of these majestic works of art would be melted into golden bars. American eagle gold coins are now a rare commodity and carry a high value if in mint condition. This type of golden piece is among America's most popular collector items. The best collections include pieces that are not easily obtainable. A well known success story is an example of a collection owned by a New York attorney. From 1945-1955 this man collected many American eagle gold coins and was said to have the most complete collection ever seen. The total cost of collection to the attorney was $13,832, but when this collection auctioned in 1978, it realized $1,287,215. The right collection can be worth quite a lot of money when sold.
As a guide for the future, dealers suggest that investors purchase the golden pieces in a grade and quality of the highest caliber. Few higher quality pieces are much rarer and subsequently worth more than many lower quality pieces. The purchase of an undervalued double eagle gold coin is a must. A novice collector should also enlist the help of professionals. The best way to purchase rare coinage is to have a professional that can be depended upon recommend specific pieces. Experts also recommend that buyers only invest in rare coins graded by Professional Coin Grading Service (PCGS) and Numismatic Guaranty Corporation (NGC). These are the most reputable independent grading services whose standards are accepted industry-wide. American eagle gold coins can be easily converted into cash by most dealers due to the worldwide recognition they have gained because of their government backing. They are popularly offered in four denominations: 1, 1/2, 1/4, and 1/10 troy ounces to appeal to anyone's budget. These pieces consistently hold their value no matter how volatile the financial climate becomes and are an irreplaceable addition to diversify any investment portfolio.