The extended rally in gold and silver prices continues unabated. Gold and silver coins can make very good investments because they have some unique characteristics of their own. Unlike rounds or bars, bullion coins can carry a certain amount of collector value. Newer gold and silver coins, like Canadian Maple Leaf coins, don’t typically have much collector value. American gold coins minted prior to the elimination of circulating gold in 1933, on the other hand, can have more than half of their total price tied up in their value as collectibles. If you wish to invest in coins, it’s important to understand that there may be more to your investment than straightforward bullion value.
The demand for silver and gold has grown in every major industry, from jewelry to electronics to medicine. The demand has also increased among investors. But the supply for these precious metals has been playing catch-up for several years now, causing their value to go up steadily.
Traditionally, central banks and large asset managers have had an additional alternative. These investors could open a relationship with a bullion bank and deposit their gold, silver, or platinum for a period of time in return for a yield. This yield is often used by the depositor to buy even more gold, silver or platinum.
You can find a precious metals dealer through trade groups such as Industry Council for Tangible Assets (ICTA) or the American Numismatic Association (ANA). As a word of caution, you should check and compare prices with several precious metals dealers. Make sure the dealer has experience and is in good standing with the state in which it operates. You must place your buy and sell orders directly with the precious metals dealer. Your IRA custodian does not place these trades for you.
Now, let’s compare that to buying $1,500 of gold. Since 1oz of gold currently carries a retail price of about $1,785, you would have to buy gold in either grams or partial ounces, both of which carry a higher premium per ounce. At retail prices, $1,500 would buy you about 23 grams of gold. That amount of gold, based on spot price , is worth only $1,400, meaning you would be paying a 7.15% premium over spot.