If you’ve done a little bit of research on introductory gold investing tips you’ve probably learned that investing in bullion is the safest way to start. However, there are many types of gold bullion and simply choosing the most reliable and profitable type can be a challenging task. If you’re not sure what type of gold bullion would be most ideal for your investing needs, consider the following:
Avoid Collector’s Coins
Private companies like the Bradford Exchange and Franklin Mint produce collectible coins that yield poor investment returns in comparison to coins issued by official government mints. In fact, most of these “collectible” coins will only fetch a sales price that is equivalent to about 92% of the current spot price. There have only been a few exceptions that actually proved to be of benefit to the investor. Unless you’re interested in the aesthetic appeal and sentimental value of special edition coins, you should probably opt for…
Ingots and Bars
Every type of gold bullion carries a small percentage commission, or premium, that raises the cost just a bit above the current value of gold. Ingots and gold bars sold by reputable refineries have the lowest mark-ups of any bullion, and are therefore the best choice for gold investors. Some of the best ingot makers and refiners include PAMP, Credit-Suisse, Engelhard, Johnson-Matthey, and SilverTowne. By investing in bars and ingots you can ensure the most ideal return possible because the price you’ll be paying will be as close to true value as possible; this is especially true if you’re buying high volume.
Consider American Eagles, Double Eagles, and Canadian Maple Leafs
If you do decide to buy coins, be sure to purchase the kind that are issued by official government mints. These coins can actually be excellent investments because they not only will retain their value in bullion; they also present the possibility of increasing in value significantly in the long-term due to rarity. Keep in mind that people have been melting these coins down and selling them due to the rising prices of gold, so each year there are fewer in existence. Eventually, in 100 years you may have a gold coin collection that yields far more than a collection of bars. The best coins to consider would be American Eagles, Canadian Maple leafs, and Saint-Gaudens Double Eagles.