What are the different forms of gold and silver purchases that can be made besides jewelry?
You can buy raw metal or ore. That is usually panning or digging for the metal and, actually, it’s just not practical for most of us so it is best left for those who really have a lot of time on their hands and love to physically work very hard.
You could own securities like stocks in mines or companies that concentrate in these areas.
You could even have debit cards with gold reserves or some security interests in some far away vault with your gold or silver.
This all sounds convenient but one of the major drawbacks is that it is not in your possession and often there is no FDIC insuring your gold or silver especially if the metal is held is outside the USA.
Depending on your level of security about having your gold in some foreign country this may not be the wisest purchase. What is the average person going to do to a Switzerland bank if the bank doesn’t deliver their gold when it is requested?
One of the most popular purchases is buying plain bullion. Gold and Silver bullion comes in a variety of sizes, rounds, sticks and bars.
In small quantities this makes very good sense however, due to the weight and the value, there could be some storage problems.
Another drawback is that bullion is an investment commodity and as such rises and falls based on the whims of investors.
The commodity value may far exceed or decrease the true value due to the market conditions.
Then there are bullion coins. That’s the money in your pocket. It’s real money and real currency.
Many people prefer bullion coins because they are readily recognizable and the purity is usually back by the government mint that produced it.
One advantage is that it can always be used as money regardless of the value of the commodity.
And they come in all sizes. Remember however, it’s value is mostly in the bullion and again, bullion fluctuates and is traded as a basic commodity just as coffee beans or pork bellies.
Then there is bullion certified coins or collectable coins. These are often called numismatic coins. They are the best of the bullion coins. Actually they are the best of the best.
It’s an area that even very sophisticated bullion investors have a limited knowledge and expertise. Not just because it is difficult to learn but because it doesn’t fit the investment goals of many investors. Many just want the metal commodity value.
These coin areas are a very intriguing area because they all will always have the value of the metal commodity and on top of that there is premium value for condition of the coin, the rarity and then the popularity for the actual coin.
Because these are so difficult for the average person to ascertain the value only coin collectors and numismatics ventured into the area.
The value has been left to the experts in coins. Today these gold and silver coins have to be authenticated and certified by third party experts.
We’ll go deeper into these certified gold and silver coins in future articles. Just the fact that they are certified and graded by recognized experts makes them more valuable and desirable than ordinary ungraded silver or gold bullion type coins.
Traditionally, only older antique coins were graded and authenticated.
Fortunately it does not have to be some old, obscure or antique coin to be authenticated and certified today. Matter of fact, you can have any modern issue, government minted coincertified and authenticated.
The trend is toward more and more brand new modern issue coins being certified.
So, “Why Should The General Public Buy Certified Coins Instead Of Bullion coins?” In our next article, we’ll answer that question,
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Dave Lovett is a noted Internet and Marketing Professional with over 25 years of successful experience. To learn more about these concepts and thinking processes, go to http://www.GoldandSilverSolutions.info You can get a FREE mp3 download today that covers the entire series at http://www.box.net/shared/ycbpmj1bfa
