When you own stocks and shares, there’s one big disadvantage; we don’t get to own anything physically so we have nothing to show for our investment. Sure, the real disadvantage comes with its ties to the performance of the economy which has been unreliable for around a decade now. However, there’s also something inside all of us that makes owning gold fun and enjoyable while also providing the sensible option.
Today, we want to discuss how to buy gold coins online because it’s easier than ever. In addition to the different types, we’re going to explain how to stay safe and how to end the transaction with a smile on your face as you say the magic words ‘I’ve invested in gold’.
Types Of Gold Coin
Ultimately, there are dozens of gold coins you can purchase in the market but they come into two main categories; rare (numismatic) coins and standard bullion coins.
Bullion Coins – With bullion coins, you have a coin that’s made from the precious metal in question whether it’s gold, silver, or any other. Since the gold coins are made of highly-refined gold, they serve as an investment. Naturally, gold is a soft metal and this is something that concerns many but bullion coins are typically treated with an alloy so they last the test of time. In the eyes of the law, all gold is considered a collectable; this being said, bullion coins aren’t ‘collector’ coins.
In terms of how to buy gold coins online, bullion coins are produced every year in the form of government mints. Known as ‘sovereign’ coins, this essentially means they’re government-produced but they also come with a face value. However, the face value needs to come with a pinch of salt at first because the value is normally much higher than the number on the front; it’s largely symbolic these days and a minimum to ensure it never drops below a certain value.
On the other hand, you might have seen ‘rounds’ and these are a little different because they’re produced privately. As you may know, silver rounds are incredibly popular but this isn’t the case with gold. With no government backing, gold rounds don’t have an initial face value so they’re instantly less attractive. Of course, they still deserve a place within this guide since we’re covering all aspects of how to buy gold coins online.
Numismatic Coins – If you’re looking for an investment, bullion coins are the way to go because their price will be directly affected by the price of gold and the gold content within the coin. On the other side of the market, we have numismatic coins and the prices of these are determined by the condition of the coin and its rarity. With numismatic coins, we have an interesting niche because the premiums are generally much larger than those found with bullion coins. Depending on the coin, we’ve seen this push into the hundreds of thousands and even millions.
As mentioned, bullion coins are the way to go if you’re only interested in investing. With numismatic coins, you can easily end up paying more than the coin is worth and this is perhaps the biggest problem. As with any collector’s item, the seller is going to push for as much money as they can. With gold bullion, it has a universal value which means you’ll pay an amount based on the gold content of the coin.
Before we move onto some advice for how to buy gold coins online, we should also mention ‘semi-numismatic’ coins because this might be something you come across when researching. Essentially, this is nothing more than a marketing term because it describes a collector coin that hasn’t yet gained its value through historical significance. Someday, they may be worth something to someone but they should never be used as a short- or medium-term investment.
Buying Gold Coins Online
When it comes to buying gold coins online, there are some important considerations to remember. Ultimately, the goal would be to buy gold that increases in value but the liquidity of your investment is just as important and this is something people often forget. Why are the stock markets so popular? Because you can move money around within a matter of seconds. From morning to evening, your money can be in completely different places. However, you also get ‘low volume’ stocks which are tough to sell and the same can be found with gold coins.
In the US, we’re lucky to have access to sovereign gold coins that have value, increase in value over time, and can be sold whenever the time comes. For example, we have the most popular gold coin in the world; the one-ounce American Gold Eagle. With a face value of $50, it’s backed by the government and can be bought in several denominations. After this, the internet allows us to invest in the Canadian Maple Leaf, Austrian Philharmonic, South African Gold Krugerrand (no face value), Australian Kangaroo, and the American Gold Buffalo. With the latter, it has a history of just over a decade but it offers a greater purity when compared to the Gold Eagle.
When purchasing online, the biggest risk is the fact we need to pay upfront before then hoping the seller comes through. Therefore, you need an established, reliable, and trustworthy dealer and you can find one using the following tips!
Forms Of Payment – Firstly, look for a provider who offers you an opportunity to pay via credit card, bank wire, cash, personal checks, PayPal, and more. Not only does this mean they’re willing to help in several ways, it means you have options in the future when selling as well as buying.
Overall Cost – Before investing in gold coins, you should be aware of the costs and charges involved in the process. Do you need to pay insurance, shipping, credit card charges, and/or commission?
Experience – How much experience does the company have within the industry? These days, there are some superb services that launched in the early days of the internet or moved online from a physical business. The more experience they have, the happier you can be about the service because they’ve dealt with the common issues that arise.
Previous Customer Reviews – Sure, they might have experience in the market but are customers happy with their service? Nowadays, the internet is a beautiful place because you can read everything you need to know about a business (and more!) with a simple search online. If everybody is talking about how good a service is, you can be confident.
Buyback And Returns Policies – Finally, the ideal situation would have you choose a company willing to buy the gold back from you when the time comes. Also, although buyer remorse doesn’t exist with gold, you need to be able to send the product back if the order is incorrect.
With gold more popular than ever thanks to the inconsistent performance of the economy, gold now makes for a superb investment and we hope to have shown you how to buy gold coins online. Keep reading, keep researching, and one day you can be proud of a gold coin investment portfolio for both you and your family!
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