Why are so many wise investors buying gold coins? Because they understand the severity of current economic threats and are proactively defending their wealth against them.
No single word better defines this economic climate than “uncertain,” and nothing is perceived to be harder to prepare for than the unknown. There is, however, one investment that has proven to weather the worst economic storms man has ever contrived: an investment in gold coins.
The Time-Tested Shelter of Gold Coin Investment
The problems facing our economy today are nothing new. Every great civilization has risen out of infinite potential only to fall to the allure of fiat money. Empires emerge fueled by currency that is backed by the creation of true wealth. When that wealth can no longer support and defend expansion, they invariably resort to diluting their currency. Ultimately nothing remains to back their money but a promise that cannot be kept.
The laws of nature dictate that wealth created out of nothing is only transitory, yet the illusion persists against all common sense. As history has repeatedly demonstrated, fiat money – and all wealth derived from it – is destined for worthlessness.
Throughout the world we are witnessing the progression towards that end. Resources that otherwise could be put to the production of hard capital wealth are instead being frittered away to service unsustainable debt. The dollar’s value has fallen to only a few pennies in just the past 80 years as its ties to gold were systematically weakened and then severed altogether.
Equally as certain as wealth tied to the once great western currencies will decline, wealth preserved with gold will endure.
There is but one true purpose of wealth: to sustain one’s desired quality of life and preserve that for future generations. Likewise there is but one measure of success to that end: purchasing power.
Whether it be cash stuffed inside a mattress, huge savings accounts, or a bulging portfolio of equities, wealth so held has been dwindling for decades. Although the “growth” seen on annual reports may seem impressive, for most people the net value of their savings today will purchase far less than it could just a decade ago.
On the other hand, over the same period the purchasing power of gold coin investments has not only been preserved, it has increased substantially. If anything, the potential for continued growth is even stronger today.
The Gold Coin Advantage
There are, to be sure, a variety of investments that hold promise for short-to-mid-term returns. Given the volatility of the current economy, however, such investments must be extremely liquid in order to realize that promise. Investors must also have complete control over their assets or they risk sudden and dramatic loss.
Gold coin investments have no equal in satisfying both those criteria. No other asset can match gold’s instant liquidity everywhere around the globe. Furthermore, investors who take physical possession of their gold coins are free to buy and sell at will, unencumbered by third-party liability and control and unhampered by government regulations.
Best of all, whether you are investing for short-term profit or for long-term wealth protection and growth, there is a gold coin product ideally suited to your needs.
Gold Bullion Coins
If your goal is to capitalize on the excellent prospects for near-term increases in the gold price, the extreme liquidity and marginal premiums of gold bullion coins are perfectly tailored to the purpose.
There is a dizzying array of gold bullion coins currently in mintage. While most may be viable for investment, these three have consistently proven to top the list for consistent quality, demand, and security:
- The American Gold Eagle. The Gold Eagle keeps alive a great American tradition with its stunning beauty, making it the most desired 22-kt gold bullion coin in the world. Four out of five American investors choose the Eagle for their gold coin investments.
- The Canadian Maple Leaf. The Royal Canadian Mint is world renowned for the purity of its gold bullion coins, struck from 0.9999% pure gold. The mint’s obsession with purity has made the Maple Leaf the most popular 24-kt gold coin in production today.
- South African Krugerrand. South Africa launched the era of modern gold bullion coin investment when it introduced the Krugerrand in 1967. Since that time the Krugerrand has remained a staple of global gold coin investment.
While gold bullion coins offer excellent opportunity for short-term profits, rare gold coins have unique advantages for those seeking long-term stability, growth, and wealth protection.
Rare Gold Coins
Rare – or numismatic – gold coins are those minted for circulation as currency before the last were struck in 1933. As with those in gold bullion coins, investments in rare gold coins benefit from the steady rise in the gold price that has continued unabated for well over a decade. But numismatic coins have experienced even greater growth in value due to ever increasing demand for their limited supply.
The so-called rarity premium of numismatic gold coins is merely a reflection of that demand, and it provides an additional avenue for long-term growth in value. By its very nature, rarity also insulates your gold coin investments from the volatility of the commodity exchange. When the right balance is struck between rarity and gold content, rare gold coins consistently outperform bullion and often continue to rise when the spot gold price falls.
That balance is the key to successful rare gold coin investment. Unlike collectors, investors benefit most from coins that are heavily traded and sought after by other investors. Such coins assure excellent liquidity while steadily rising investment demand delivers solid potential for growth.
It stands to reason that America’s gold coinage, which spans but a relatively short period of history, offers optimal investment potential coupled with the highest level of security. These three have consistently been among the top performers:
- The $20 Saint Gaudens Double Eagle. Its unparalleled beauty places the Saint Gaudens Double Eagle at the apex of American coinage. As such it has become the coin of choice for investors around the world.
- The $20 Lady Liberty Double Eagle. No other coin better defines the conquering of America’s frontier and rise to global prominence than the Lady Liberty Double Eagle, making a perennial favorite for investment.
- The $10 Indian Eagle. This iconic tribute to Native Americans closed out the long and storied tradition of the Gold Eagle. Having half the gold content of the Double Eagles, the Indian Eagle is especially attractive to investors on a tight budget.
Knowing which gold coins to buy will go a long ways toward achieving your investment goals. Knowing where to buy gold coins will safeguard your hard-earned investment dollars and ensure that you get the maximum benefit from them.
Avoid the Pitfalls When Buying Gold Coins
There is no “secret” to successful gold coin investment – all it takes is prudence and common sense. Although the media are filled with eye-catching ads and well-know celebrities touting some dealer’s claim to the contrary, such claims don’t stand up to simple math.
The price of gold begins with the spot price, which is set by the large volume “wholesale” bullion trade. The only economies available to bullion retailers are those realized through volume trade and reduction of overhead. It is the investor who pays the exceptionally high cost advertising, not the dealer.
To gloss over that fact a common ploy is to “prove” that gold prices will go up, usually followed by the claim “you can’t lose.” No investment can be guaranteed to grow in value because there is always an element of risk and uncertainty. To promise otherwise is unethical and most likely illegal; any dealer who does so does not have investors’ best interests in mind.
The long-running boom in gold coin investment has also gone hand-in-hand with rising fraud and the proliferation of ever more sophisticated counterfeiters. Every “bargain” coin, even rare coins purportedly authenticated by a grading service, should be regarded as suspect, especially those offered through online auctions and at coin shows.
Fortunately, these and other pitfalls to gold coin investment are easily avoided.
Invest In Gold Coins With Confidence
This brief checklist is all you need to find a dealer who will offer you the best prices while affording you absolute security for your gold coin investment:
- Have they demonstrated their viability with at least 10 years of continuous service to the household investor?
- Have they proven their commitment to the consumer with a sustained A+ Better Business Bureau rating?
- Do they employ state-of-the-art security and forgery countermeasures to ensure no counterfeit is ever passed into an investor’s hands?
- Do they maintain a high-volume trade with a broad base of retailers?
- Have they grown their business through word-of-mouth by satisfied customers rather than splashy promotion and high pressure sales?
- Do they freely offer extensive knowledge and advice without obligation?
- Do they fully disclose and explain every detail of the transaction before they make the sale?
- Will they continue to advise and inform you after the sale?
Without question the checklist is demanding, and only a dealer who measures its success solely by that of its investment partners will receive a perfect score. But why would you settle for anything less?
We are proud of the reputation we have earned as North America’s premier gold dealer and as the Household Investors’ Choice in gold. We invite you to put us to the test.
You can begin by requesting a free copy of our “2013 Insider’s Guide To Gold Investing,” which is packed with useful information about how you can protect your future with gold – just click here.
If you prefer to discuss the possibilities with one of our friendly expert gold investment advisors, just give us a call at 1-800-425-5672.