Among the most popular and recognizable investment coins are those for gold:
South African Krugerrand, Canadian Maple Leaf, American Eagle, American Bison and Austrian Philharmonic.
Some coins, such as the Krugerrand and the American Eagle have admixtures of other metals to increase the durability of the coin, so they are slightly larger and heavier, but still contain 1 ounce of pure gold. So, it shouldn’t come as a surprise to you when you make a purchase.
In the case of bars, the solid producers are, among others:
Umicore, Heraeus, Valcambi and Rand Refinery
Popular silver investment coins include.:
Canadian Maple Leaf, American Eagle, Austrian Philharmonic and British Britannia.
Price of gold and silver
When we check the current market price of gold and silver as a commodity on the Internet, we look at the so-called SPOT price. However, when we look at the price of a 1-ounce coin or bar, the price is higher. Why? Because the SPOT price is the price of the commodity. The price of a gold coin also includes the cost of minting the coin, the cost of transport, the manufacturer’s margin and the dealer’s margin. The price of a 1-ounce coin or ingot should not differ more than a few percent from the spot price. Clear information on how much the product costs above the SPOT price, both in amount and as a percentage, should be required when purchasing. It’s worth comparing offers from different dealers.
The margin over the SPOT price can be reduced by buying gold or silver in larger sets. For example, if we buy silver coins in a tube of 20 or 25 pieces the price should be lower per coin then when we’re buying a single coin. We will also probably pay more if we want to get the goods right away. When we are ready to wait for delivery, the price should be lower.
Choosing a precious metal dealer
It is important to have a trusted supplier of precious metals. It must be a company with an established position on the market, existing for some time and having a good reputation. If we want to purchase precious metals personally or anonymously, if there is such a possibility in a given country, of course the distance to the nearest branch counts as well. The dealer should also have good product availability. The price of gold and silver fluctuates quite strongly in the short term, so it is important to be able to get the product quickly when the price of the metal’s falls, as such a fall often does not last long. The dealer should also be ready to buy back gold or silver from us in the future (and declare at what price he will buy it back in relation to the SPOT price). This will mean that he is confident in his product and will make it easier for us to sell in the future without having to look for a buyer.
Safe storage of precious metals
The basic safety principle should be that we do not announce that we have any gold and silver. Just as we don’t announce that we have cash in our wallet.
There are several methods of storing precious metals. The most basic method is the so-called “land bank”, i.e. simply burying the gold in the garden or hiding it somewhere at home. However, this method carries some obvious risk, so it should be used – if at all – only for minimum amounts of metal needed “for the rainy day”.
Another option is to buy a safe, but this can be very expensive.
The next option is a bank safe deposit box. However, there are certain risks, such as lack of insurance for the contents of the deposit. Additional insurance can be expensive and difficult to obtain for precious metals in a bank deposit. Another danger is the lack of access to the metal outside bank opening hours (e.g. on weekends) and it is not possible to react quickly to large price changes during this time.
When we have large quantities of gold and silver, it is worth looking at professional companies specializing in precious metal storage services.
Finally, it is worth noting that we do not give any recommendation or investment advice here, that you should buy precious metals. We are not investment advisors. Every investment involves risk. Each asset should be understood before purchase, its specifics known, and an informed decision should be made, preferably in consultation with a specialist.