Buying and Owning Gold
What's the best form of gold bullion to
In this country, we like the gold Eagle from the U.S.
Mint. This is far and away the most popular bullion coin,
and it has the best resale value of any bullion coin traded
in America. In the long run, it probably doesn't matter which
form of tradeable gold you buy, but we give the edge to the
should I decide which gold bullion is the best for me ?
this website presents the major varieties of bullion gold,
and we have tried to go into some detail about each one.
Different gold buyers are attracted to different forms of
bullion, and your decision will be based on what appeals
to you. You may even wish to own some of different
types of bullion coins - there's no need to put all your
eggs in one basket! However, if you have no strong preference,
we recommend the U.S. gold Eagle as a beautiful coin with
wide acceptance and a strong buy-back price.
one certain size better to own than others ? Which
is best? Why?
The most frequently
traded size is the one ounce, and that is the size with the
smallest percentage difference between the buy and sell prices.
For that reason, the one ounce is the most practical of all
the sizes. Most gold packages we sell are predominantly one
ounce coins, with the smaller, 'fractional' sizes making
up a smaller part of the portfolio.
I buy pure gold instead of 'impure' gold ?
It would seem that way, at first glance. And many people
only buy 'pure' (99.9% or finer) gold. But, remember, those
coins which are 90% or 91.7% pure gold were made by starting
with the full weight of gold. By alloying it slightly with
copper or silver, the soft gold is toughened to withstand
wear and handling better than 'pure' gold. Whether you buy
pure or alloyed gold is your own preference, but for thousands
of years gold coins have contained an alloy to make them
I buy gold at spot ?
Yes, you can
buy a current contract of gold at the 'spot' price, plus
whatever fees and commissions the trade costs you. This entitles
you to a 'contract' amount, usually 32.15 ounces (kilogram),
100 ounces, or 400 ounces of gold. It also obligates you
to immediately pay for it in full, and arrange delivery or
storage of your purchase. Further complicating things, the
gold will be in the form of a bar that is not necessarily
the exact size you contracted for. Sound complicated?
It is. The 'spot'
price of gold is a trading price, before expenses, and taking
delivery of tradable forms of gold involves refining, weighing,
insuring, and shipping the gold safely to you or your designated
Yes, you can buy gold at the
spot price. But usually not in a convenient or tradable form.
should I store gold coins ?
No special care is needed with
gold - gold will not tarnish or corrode
no matter how you store it. We do
recommend keeping the coins in their
original mint tubes or packaging
just as you receive them from us.
Gold is soft, and your Mint-fresh
coins can be scratched or marred
by rough handling. This won't effect
their gold value, of course, but
bullion coins can lose some of their
resale value if not kept in perfect
do other people store gold coins ?
Traditionally, gold owners have used their bank safe
deposit boxes for secure storage of gold. Although bank
vaults offer virtually absolute protection, you can also buy
insurance on their contents as a rider on your homeowners
policy at a surprisingly low cost. Some people prefer
to keep at least some of their gold closer to home, often
protected in a floor safe, or kept well concealed. This is
a matter of personal preference, and where you store your
gold is a private decision. ONE WARNING: We feel strongly
that ordinary, aboveground home safes are a big mistake. They
advertise the presence of valuables, and the ones weighing
a few hundred pounds can be taken out of your home as easily
as your refrigerator was brought in.
buys gold, anyway ?
Investors, central banks, jewelry
manufacturers and speculators are
the largest buyers. But also individuals
who just like gold in its different
forms, and those who hold gold as
an insurance policy. People with
substantial assets to protect, and/or
family obligations to consider, often
Does gold tarnish ?
No, gold does not tarnish or corrode. Your gold coins will
retain their color and brightness, literally forever.
I clean gold coins ?
It's not necessary, as gold doesn't tarnish, and cleaning
or polishing them will take away their original Mint finish
and hurt their resale value.
gold easy to sell ?
Yes. Gold is easy to sell anywhere in the world, at any
time. The volume of world gold trading runs into the Billions
of dollars every day, in a 24-hour circle from London to
New York to Chicago to Australia to Japan to India to Turkey
to Paris and back to London.
If the price
of gold rises substantially, where can I sell it ?
Almost anywhere. Of course, we are in the business of
buying and selling gold, and hope that you will allow us
a chance to bid, should you or yours ever decide to sell
some of your gold. But in fact, there are hundreds of dealers
in the United States, and thousands in the world, who buy
gold every day.
is there a face value on the coins ?
bullion coins have a nominal face value, which makes them
legal tender in the country that they are struck. This
status as legal tender, rather than mere bullion, makes
them easier to carry across national borders with incurring
tariffs and taxes. The face value on the coin is a 'nominal'
face value, and the various mints do not issue them at
that price, nor do they ever trade at that value. But that
value does confer an important legal tender status to the