Monday, 18 April 2011
Investing in Gold and I Gotta Blog More
Just got my first paycheck :D
Anyways, I was recently thinking about how the price of our paper money slowly weakens, the price of gold and silver go up, and many people loose money as their paper becomes worthless and banks close down. You can profit off this pattern in a variety of different ways of investments. This page will cover how you can do it with gold and silver bullion, which have better liquidity than bars (which are quite effective as well to invest aswell).
I hit up the local Craigslist, and saw many good opportunities for flipping collectibles like gold, silver, and platinum bullion; coins; and bars.
Gold and Silver coins can be separated into these different types:
* Standard bullion coins (e.g. American Gold eagle, Canadian Maple leaf) are sold for either more or less their base gold value.
* Rare collectible (numismatic) coins can go for much more than their gold value depending on the market. While there is more potential profit here, you'll need to learn as much as possible about grading and evaluating rare coins. This is not recommended for beginners.
Usually, the standard weight for a gold coin is one troy ounce (31.1 grams, a little more weight than the standard ounce). There are coins that weigh alot less than that, but they are way harder to trade and make, so you might end up paying a bigger percentage premium to buy them, and dealers may charge a bigger markdown when you sell -- all of which will cut into the potential profits you can make, so that is not recommended. Most newspapers report the price of gold and silver daily, and you can http://thinkfeed.info get almost instantaneous updates online. Watch the price of the dollar. This is easy to find as well. As mentioned earlier, there tends to be an inverse relationship between that and the value of gold, so watch out for that.
Try to shop around. There are many ways you can buy gold and silver coins. Your best bet is to compare prices on whichever coin you're thinking of buying.
To make maximum profit, you must always try to sell your coins at peak demand. Gold and Silver Coins are good investments. thinkfeed.info You want to sell your coins right before the value of gold starts going down, so that you walk away from the transaction with more money than you spent on the coins. Since timing the market does not always work, you should consider selling when gold price is at all time high, the demand is very high, the sentiment is generally bullish, and you are sitting at a sizable profit.
* Buy from Craigslist. Beware of scams. Gold bars should have serial numbers, and ask for authentication papers to make pure legitimacy.
* Buy from a government. Their coins usually come with a reliable guarantee of gold content, weight, and purity. The US government sells gold coins online.
* Buy from private firms, preferably ones that have been selling gold for over 30 years, like the following:
Next, you must plan where you will store the coins. Any secure method of storage is going to cost you money. Consider a bank safe deposit box, a home safe or a safekeeping program offered by some gold dealers which you may choose.
Buy from an individual dealer or on an online auction site such as ebay. This is the riskiest route. Try and obtain a price guarantee (a specific value guarantee that the dealer places on your coin). On the flip-side, some dealers make shady guarantees in order to sucker buyers to purchase their coins.