Why should you buy gold coins? Because during economic market corrections, gold coins go up in value, while paper money erodes as the government inflates the number of bills circulated. People who made the choice to buy gold coins in November 2002, for example, paid less than $400 for a one ounce gold coin. In October 2009, the price of that same gold coin went over $1,000. Inflation, on the other hand, eroded the US Dollar by 20 percent. So, for example, if someone decided to buy gold coins with $1,100 in 2002, today his gold coins would be worth more than $3,000. On the other hand, if he placed his money in a piggy bank instead of buying gold coins, his $1,100 of paper money would be worth $880. (You can play around with this inflation calculator to see how your paper money is losing its value over time).
We all know that we must put money aside for a rainy day. One sure way to do that is to buy gold coins with our savings. Even skeptics would benefit from setting at least some of their hard earned cash aside to buy gold coins with. There are several safe and easy ways to do that, but there are also places that you should avoid. Here are a few simple dos and don’ts on how to buy gold coins.
Buy Gold Coins-DON’TS
Don’t buy gold coins from a pawn shop or a jeweler. Typically the prices they charge are higher than specialized sources that sell and buy gold coins on a regular basis. For the same reason, do not sell gold coins you may have to a pawn shop or jeweler. Refer instead to the list of recommended venues below, both when you buy gold coins and when you sell them.
If you see a newspaper or magazine ad promising a low introductory price when you buy gold coins, don’t assume that the promotional rate is indeed the best you can get. Again, refer to the recommended list below to find the best prices and value when you buy gold coins, and to be sure that you are protected from fraud or loss during delivery.
Buy Gold Coins-DOS: APMEX
American Precious Metals Exchange (APMEX) is an online exchange where you can buy gold coins and other precious metals. The exchange is set up like an ordinary online store. You browse coins by categories and add items to your shopping cart. Pay close attention to the ounces in each coin, as these will determine the value. You can buy gold coins that are only 1/4 ounce of gold, or a full one ounce, or even more. However when you buy gold coins or other precious metals you will see that the price fluctuates every minute. This is due to the fact that these metals are traded on stock exchanges around the world and their price index keeps changing. Therefore, the items that you put in your cart will continue to fluctuate up and down, until you being the checkout process. Once you start the checkout process the prices will be frozen for 10 minutes. There are no hidden fees with APMEX, though a minimum purchase of $50 is required for an order to be processed. By clicking on your shopping cart, you’ll be able to see the Shipping and Handling costs. Every shipment is completely insured in case of loss in transit.
APMEX accepts several forms of payment when you buy gold coins or other precious metals, such as check and bank wire. Even credit cards are accepted, but only one credit card purchase is permitted a month, with a cap of $5,000. Best of all, APMEX will ship orders within a few days of receiving payment.
In addition to selling gold coins, APMEX will buy gold coins and offer fair trading values. Simply open an account with them and call (800) 375-9006 to hear current prices. More information can be found in APMEX FAQ.
Buy Gold Coins-DOS: NORTHWEST TERRITORIAL MINT
The mint located in the state of Washington offers a beautiful selection of coins. Prices are competitive and tied to the price index of each metal. You can buy gold coins by calling the mint (800) 344-6468, or by placing an order online. The mint does not accept credit card payments, however. A check, wire transfer, money order or cashier’s check are the accepted payment methods. This will be clearly explained to you at the time of check out.
When you buy gold coins from the mint, there will be a much longer wait time than with APMEX, as the mint will actually mint your order for you. How long you will have to wait depends on the volume of orders. Be prepared to wait for many weeks. If you are in a rush, the mint is not the right place for you to buy gold coins. Go instead to APMEX. In addition, if you place an order with the mint and have to cancel it before shipment, the mint will refund you based on the price of the precious metal on the day of cancellation. Be prepared to lose money, or even make money as a result, depending on whether prices went up or down.
When your order is ready, the mint will ship the coins to you. Your order will be fully insured. In addition, the mint will buy gold coins from you, or any other precious metal. Contact the mint for more information (800) 375-9006.
Buy Gold Coins-DOS: GOLDLINE
Goldline specialize in rare coins and precious metals. You can buy gold coins or other precious metal coins online or by phone: 1-877-376-2646. If you would like to receive a free investor kit, simply fill out the form request. Keep in mind that rare or antique coins will cost more as they have the added value of a historical artifact, in addition to the value of the metal itself. Even if you do not intend to buy gold coins now, the Goldline website is as fun to visit as a museum.
If you are curious to keep an eye on the price of gold before you buy gold coins yourself, Bullion Vault offers a real-time update on the price of gold worldwide. (Bullion Vault offers a different form of acquiring gold, by storing gold bullion overseas. This article does not cover this form of gold buying.)
