Strategies for Buying Gold Bullion Coins : Properly!

 When you decide to buy gold bullion coins, you are committing to a decision that could well have a very positive affect the preservation of your future buying power. But only if you really pay a fair price!

Too many novices, buying gold bullion coins for the very first time, overpay & subsequently will have to wait quite a while to see "the return of their investment" (Will Rogers!).

Gold Bullion coins are coins whose value is founded on their intrinsic metal value. Not on any "coin collecting value" (in spite of what some dealers might try and persuade you!).

Normally they trade for a "premium over spot" ;."Spot" is the price tag on the metal in the "spot" market and is widely reported on the financial channels, as well as daily in several newspapers. Some websites carry the graphs "live" (though often with a slight time delay). Typically, bullion coins sell for reduced as high as 10% above "spot"- but this number varies depending on the type, quantity and size of bullion coins you decide to buy.

Like:

First off, the sort of coin: The premium above spot is generally lowest on Krugerrands. For a one-ounce gold bullion Krugerrand, you ought to NEVER- pay greater than a 10% premium above the spot price.

Ignore talk of "beautiful collectible coin" ;.This can be a bullion coin pure & simple.

For half-ounce coins the premium is greater; a half-ounce gold bullion Krugerrand must have a maximum price above spot of 12%. Again- that's it- don't be deceived!

Next, quantity:

In the event that you order more gold bullion coins, you can expect a cost nearer to the spot price of the metal e.g. in case of Gold Sovereigns, if you were to buy 100, expect to pay for a maximum of 7% above spot.

Finally, how big is the coin- the smaller coins tend to hold an increased premium above the spot price, as noted above in the Krugerrand example Gold Coins. That's why I'd always advise someone to save a little longer & try and buy a one-ounce coin as opposed to buying two half-ounce coins (or 10, tenth-ounce coins...).

The numbers I have quoted are made to provide you with a sense of the 'order of magnitude' of what things to expect. I get completely fed up of hearing stories of first-time coin buyers paying DOUBLE what they ought to have.

So to summarize. Buying gold bullion coins may be one of the greatest approaches to preserve your wealth in these uncertain times- but only if you don't get overcharged at the outset. Watch on the gold price and do your sums.