3 Things You Should Know When Buying Gold Coins

The value of gold has been known to rise to astounding highs and more people look for gold as a viable investment. There are a lot of reputable and honest gold dealers Melbourne that will help you buy bullion coins at a fair market value. Unfortunately, there are gold dealers who will take advantage of customers. Just make sure you understand what you are getting yourself into.

Before you do anything regarding precious metals, you should research and get some knowledge from somebody. There are a number of different gold products you can invest in. You need to know the particular product you put your money on. Is it going to gold coins or gold bars?

To make an informed decision, you have to be aware of a number of factors: The cost of the metal, the value of coins v.s. the value of gold bars and when you can take delivery of your purchase. Here are some guidelines you can follow:

Gold price

Investors need to be aware of the premiums charged for gold bullion coins. They trade at a smaller premium over the spot gold price because government mints that make these coins charge a nominal fee for fabrication. The spot price of gold is based on a minimum of 100-ounces or more of .999 fine gold. Gold bullion with a 1/10th -ounce trade at 3% to 15% premium over the spot price of gold. The price varies with size and quantity bought.

A lot of large gold dealers Melbourne will sell one Canadian Maple Leaf a 1-ounce gold coin at 4-5% over the spot price. Gold dealers also buy gold from customers for 2 to 5% less than the selling price. Canadian Maple Leaf gold coins, South African Krugerrands, American gold Eagle coins, Australian Nuggets are some of the world’s most popular gold coins. Before you commit to buying a certain kind of coin, contact as many dealers as you can to find out what the best price for your coins should be.

Bullion vs. Collector Coins

Learn to tell the difference between gold bullion coins and collector’s coins. The price of bullion coins fluctuates according to the market price of gold. Collectors’ or numismatic coins are rare and they have a higher premium that is based on history, condition, and market demand. Some numismatic gold coins have a premium that can be quite high. Graded, high-quality rare gold coins can be worth quite a lot if they are in demand.

Delivery

When you engage with a dealer at an actual physical store, find out if they keep their inventory in-store or if they have to get it from some storage and then deliver it to you. Most dealers will have inventory on hand. There are always security issues, so if you do receive your gold immediately, make sure that you can walk out of the store and not feel insecure. It doesn’t matter whether it’s a single coin or gold bars worth thousands of dollars if you feel uncomfortable you should be able to ask the dealer for an escort to your car.