Tuesday, October 23, 2012

Buying Gold Coins over a Long Period of Time

By Michael Fung


Gold coins and bullion have been the desirable vehicle for storage of real wealth for many throughout the ages. It still continues to attract investors and collectors who believe that gold is one of the safest resources in which to hold their wealth and trust.

Although the existing economic outlook remains stubbornly bad, the price of gold is still going up in a steady pace. An ounce of gold is currently just under $1,700. A lot of investment advisors believe gold to rise to more than the $1,700 ceiling easily before the year end. Looking at these projections, purchasing gold coins is an efficient solution to improve the value of your investment portfolio, taken into the additional factor of gold's stability.

When considering buying gold coins as an investment, you'll first need to assess the importance of gold to your overall investment portfolio. If you're a beginner in gold investing, you will need to educate yourself on what kind of gold to buy, when to buy it and how to find the best company from whom to purchase gold bullion and gold coins. A key factor in determining the role of gold in your portfolio is deciding how much of your investment dollars should be placed in gold. Some investment experts recommend investing between 10 and 30 percent of your investment funds in gold.

After you have decided how much money you'll put into gold, you'll need to decide which kinds of bullion or coins you want to buy. Most investors prefer to put their investment dollars in either current gold bullion coins or gold coins minted before 1933. Investors who prefer the pre-1933 gold coins minted as common coins in denominations between $1 and $20 say that their design and limited availability make them much more valuable than current gold bullion coins. The newer cheap gold coins may be a better choice for smaller investors who want to put their investment dollars in coins that weigh less than an ounce.

Finding a reliable and reputable gold dealer is the first step and a very important step you'll need to take when buying gold. If you're making your purchase from a storefront business, be sure to check their rating from Better Business Bureau and ask people you know about their reputation. If you want to purchase coins online, find out how long the dealer has been in business and carefully search their website for any clues about their knowledge and experience as gold dealers.




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