From collectibles to cars, buy and sell all kinds of items on eBayWelcome! Sign in or register.
aAdvanced Search
Popular products
No suggestions.

Reviews & Guides

Write a guide

Investing in Gold coins Double Eagles only way to go...

by: biggalswholesale( 634Feedback score is 500 to 999) Top 25 Reviewer
442 out of 482 people found this guide helpful.
Guide viewed: 12127 times Tags: gold coins | coin | investment | gold eagles | st gaudens


IF you find this article helpful, please take a moment to vote yes at the bottom, I would like to find out what the viewers are looking for so I can expand on specific areas! Thanks in advance

Over the past decade or so, the price of gold has been mostly flat or falling, except recently when it grew unbelieveable and collapsed :). This can be blamed on many different factors ranging from the macroeconomic arena to political intrigue.

However, not all hard asset investment areas have suffered the same fate during this period. There is at least one gold investment sector that has defied the flat gold market. That sector is rare American gold coins. We're not referring to common date Double Eagles and similar "generic" coins. The coins that have performed well over the past decade are the truly rare U.S. gold coins that were minted from 1795-1933.

Despite the fact that this winning sector has been totally ignored by the financial press, it has 7 alluring features:


1. Increasing value.


2. Proven profit potential.


3. Growing demand competing for a relatively small, static supply.


4. Privacy benefits and tax advantages.


5. More wealth with less bulk...an excellent way to concentrate wealth in a portable package.


6. Affordability...investors can participate with just a few thousand dollars.


7. Beauty, rarity and pure pride of ownership.

Over the past decade many rare gold coins have soared in value, and billions have been made.

Do you find yourself sometimes asking though?

Where Did All The Gold Coins Go?

Twice in our nation's history, gold coins were melted by the government. These two government meltdowns transformed U.S. gold coinage from common monetary units into excellent long-term numismatic investments.

The first melting occurred in 1834 when the gold content of U.S. coins was reduced and nearly all gold coins minted during the period from 1795 to 1834 were melted because their intrinsic value exceeded their face value.

The second melting resulted from the great Gold Confiscation of 1933, when 90% to 95% of all U.S. gold coins held by individuals, banks and the Treasury were recalled, thrown into huge melting pots and poured into 100-ounce and 400-ounce gold bars. Franklin Roosevelt's gold confiscation of 1933 saw the end of regular issue, legal tender U.S. gold coinage.

Of the surviving populations of coins left today, not all are actually actively traded on the market. Many have been incarcerated in complete sets or long-term investment portfolios.

I can sum up my best advice in one sentence: Buy Key Date Gold coins in the highest grades you can afford and hold them for the long term.

Additionally, there are some specific guidelines you will want to follow when investing in Key Date Gold coins.


QUALITY NOT QUANTITY. Higher quality coins are much rarer than lower quality coins. They also offer the greatest aesthetic pleasure and are more likely to attract serious collector demand.


INVEST IN THE RAREST COINS YOU CAN AFFORD. Concentrate on coins with low survival rates as reported by PCGS and NGC.


BUY SLEEPERS AND STOPPERS. Sleepers are coins that are undervalued in terms of their relative rarity. Stoppers are the most important issues that make up complete sets of coins. Many Key Date coins fall into these categories. We highly recommend them.


GET PROFESSIONALS WORKING FOR YOU. While bullion coins are bought in bulk, the best way to buy rare coins is to have a professional you can depend on recommend specific examples for you. There are only a few expert numismatists with the knowledge to recognize, identify and trade in the finest and scarcest coins on the market.


BUY PCGS- AND NGC-CERTIFIED COINS ONLY. Only invest in rare coins graded by Professional Coin Grading Service (PCGS) and Numismatic Guaranty Corporation (NGC). These are the leading independent grading services whose standards are accepted industry-wide.


GET THE "SIGHT-SEEN ADVANTAGE." Do not buy coins that a dealer has obtained for you "sight-unseen." This is important because professional coin dealers are willing to pay more for rare coins with superior eye appeal.

I know this article isnt enough to make you sell your house and buy gold coins, but that is why I ALWAYS emphasize to buy only what your budget allows. If you can save 2 or 3 hundred a month in a sock drawer, guess what, you are looking at 3 -5 really nice St Gauden Gold Peices, or even one really nice and rare one. Alot of investors/collectors aren't patient enough starting out, they want it all, and they want it now, and when they get it, then they more, and can't figure out why they didnt make money in 2 months on their initial purchase. The long-term is the key, and if you can do that, then trust me that hard assets like gold coins are the way to go! Good Luck all, and I hope this helps a little!

Till Then..............


Guide ID: 10000000001231786Guide created: 06/23/06 (updated 10/24/09)

 
Was this guide helpful? Report this guide

Ready to share your knowledge with others? Write a guide



 


eBay Pulse | eBay Reviews | eBay Stores | Half.com | Austria | France | Germany | Italy | Spain | United Kingdom | Popular Searches
Kijiji | PayPal | ProStores | Apartments for Rent | Shopping.com | Skype | Tickets


About eBay | Announcements | Security Center | Resolution Center | eBay Toolbar | Policies | Government Relations | Site Map | Help
Copyright © 1995-2009 eBay Inc. All Rights Reserved. Designated trademarks and brands are the property of their respective owners. Use of this Web site constitutes acceptance of the eBay User Agreement and Privacy Policy.
eBay official time