In one year’s time, the value of gold has increased by almost $400 per ounce. On July 12, 2010, the spot price of gold was about $1,200 a troy ounce. Now that the value of gold is quickly approaching $1,600 per ounce, many investment analysts are raising their end-of-year gold price predictions to beyond $2,000 per ounce. Even though gold coin prices are much higher than they were just last year, countless investors still believe that the time is ripe to make bullion investments.
Gold coin prices are determined by adding the gold spot price to the bullion premium or a certified rare coin premium. Unless an investor knows quite a bit about rare coin investing, most will opt for certified bullion coins that are valued largely for their precious metal content. Rare coins are an entirely different venture that requires a deep understanding of a coin’s worth based on its mintmarks, rarity, historic significance, physical condition, and other factors. Bullion coins are typically a more straightforward investment.
Bullion gold coins include U.S. American Eagles, U.S. American Buffalos, South African Krugerrands, and Canadian Maple Leafs. With 24-karat gold content, gold American Buffalo and Canadian Maple Leaf coins contain the highest purity of gold out of these coins. The others are comprised of 22-karat gold. As gold coin prices for bullion coins are dependent on a coin’s purity, investors can expect American Buffalo and Maple Leaf coins to be the most expensive and to provide the most value.
The cost of a coin will also depend on whom you purchase it from. Although there are many merchants who will buy or sell coins, it is important to find a reputable coin dealer. Choose a dealer who is a member of one or several of the professional coin organizations available. For instance, a coin dealer who is a member of the Professional Numismatics Guild (PNG) will be required to meet strict standards that will make them more trustworthy and knowledgeable about coin trading.
As the gold price rallies to new record highs this July, a growing number of worldwide investors are taking notice of precious metal investments. Gold provides real value, which is more important than ever considering today’s weakened global economy. Investments such as gold bullion bars and certified bullion coins provide a secure way to protect personal wealth unlike any other investments currently on the commodities market.