Gold Coin Buying

1)Depends on what you call a coin. You have classic pre-1933 gold coins that have some of their value based on the price of gold but they also have numismatic value. The US Mint also produces silver, gold, and platinum bullion coins as an investment vehicle. They have a face value, but it is irrelevant as the metal value far exceeds face. They come in 1/10, 1/4, 1/2, and 1oz sizes for gold and platinum and 1oz for silver. Ingots and private rounds usually sell around or even below spot price because they sometimes have to be assayed for purity since there is no guarantee as to the fineness weight.

2)Numismatic values of gold coins depend on many variables. Condition, rarity, and demand all factor into the value. Regardless of how the economy goes, a demand for classic gold coins will always be there from coin collectors.

3)I do not know what you mean here- the US Mint only sells US Mint products and nothing from any other country. We have nothing to do with the currency of Liberia. Other countries mint and sell bullion coins- Canada(Maple Leaf), Mexico(Libertad), Great Britain(Britannia), Australia(Nugget), South Africa(Krugerrand) just to name a few. Those bullion coins have accepted gold values but are still usually bought and sold below prices of American Eagles.

4)If you are referring to buying current Mint items cheaper than the selling price by the Mint, not gonna happen. If you are referring to the bullion coins cost over spot, there are good reasons for this. American Eagles are the most popular precious metal bullion coins in the world. Being minted by the US Mint guarantees a certain weight and fineness of the metal so no assaying costs are involved to liquidate. Because of the way the US Mint distributes investment-grade bullion coins, you cannot buy them directly. Authorized dealers make the direct purchases through contract pricing based on metals prices. The requirements for being an AD are steephttp://www.usmint.gov/consumer/inde...ericanEagles. These dealers in turn sell directly in some cases but mostly to other smaller dealers. Also in that link are the prices over spot that the ADs pay.

Just remember, gold is a good investment diversification but don't convert your whole portfolio to gold. The current prices have not been seen since 1980 when it reached $850. Many people bought in at 600, 700, $800 and are just now finally seeing gold return to those levels 27 years later. Is the market peaking or is the ceiling higher still? I can't answer that and no one else can either. You have to decide for yourself on which side you are willing to bet it will break.

Aha, Barry Goldwater Jr. is your culprit then eh? He is head of the National Collectors Mint and has absolutely NOTHING to do with the US MINT. They are strictly a retail operation and a shoddy one at that selling spurious merchandise to novice collectors. Go to the US Mint website and browse around if you are interested in the collector versions(proof finish and West Point mintmarked uncirculated) of American Eagles or Buffalos http://catalog.usmint.gov/webapp/wc...alogId=10001


As an aside, if you are worried about 401k performance, try diversifying it more than you already do. Unless you are within 5-10 years of retirement age, do not worry about a bit of a downturn- in the long run you will come out ahead. Cashing it out is a horrible mistake unless you roll it over or are in a dire financial crisis. I have a variation of a 401k called a 403b. Since I am in my early 30s and nowhere near retirement, it is all stock but highly diversified. I have several funds comprised of major US stocks but my main diversifiers are a fund that tracks the healthcare/biotech sector, a REIT(real estate investment trust) that tracks mainly commercial real estate so I am not terribly affected by the mortgage stuff, and an emerging markets fund that invests in solid international companies in stable countries. My funds are all high quality Vanguard funds and my annual return for the past 3 years is over 20% due to my diversification. Not everyone has access to Vanguard but most mutual fund companies will have similar funds that should return 8-12% annually.

If you have alot of single company stocks in your 401k(like your employer) do your best to reduce those holdings and transition to mutual funds or even bonds. Single company stock 401ks is what killed the the investment-challenged employees of Enron. The smart ones didnt have 80% of their retirement holdings in a single stock and they are the ones with a retirement savings left while the others are just holding scraps of paper Diversification would have prevented that...

Gold coins are great, fun to collect too.

2-3 years ago I thought the Saints and Indians were pricey when gold was around $400. We all know now what an "opportunity" that was.

It's very possible that the Buffaloes and Eagles I bought for $700-800 this year will be worth half that in the future. (opportunity, see above).

I guess what I'm trying to say is "average in." Buy some this year, some next year, and so on. Down the road in 15 or 20 years you'll have a pile of gold that may be worth more than you paid for it.

Even if you're sitting on huge pile of cash, I don't think it's wise to invest it all at the same price.If there's a worldwide calamity that fractures ours and others economies, we'll all have bigger worries than if our coins are made of silver or gold.

Don't worry, be happy.

Speaking of proof Buffaloes, it looks our friends at the mint raised their price. A few months back when I got mine it was $800, now they're asking $899.95.

The price increase makes sense with the recent run up. Has the US Mint ever lowered the price on their gold pieces when the market warrants it?

Good questions to be asking.

There are several ways (and reasons) to buy gold. I strongly recommend buying in coin (not bar) form. Much easier to sell later (no need for assaying). And cooler and more fun (I think)!

If you want the most gold for the least money, you probably want something like 1 oz Krugerrands. They are recognized and trusted world-wide, have their gold content stamped on them, and usually sell for about $7 each over spot price.

Gold American Eagles (or Canadian Maples) are also a good choice, but cost a little more ($20-$30 over spot). You can also get smaller sizes (1/2, 1/4, and 1/10 oz), but these normally cost a little more per ounce than the full ounce coins.

If you like to hold a 100-year-old coin in your hand, you can often get $20 Liberties, $20 Saints, $10 Liberties, and sometimes $5 Liberties at or near spot price (for coins in circulated condition and common dates/mint marks). Obviously, certain dates and grades can be very expensive, and take a lot of knowledge to know what you're doing. $10 Indians, $5 Indians, and the smaller gold coins usually go for large premiums over spot price (about 150% or more).

You can't go too far wrong just buying Krugerrands for investment purposes from a trusted dealer like CNI (golddealer.com) or APMEX (apmex.com). They list their buy and sell prices for all to see. Basically, I would aim to buy Krugerrands at about $7 over spot and you can't go too wrong (you should be able to sell them back for $7-$10 under spot).

Good luck!

PS: The US Mint is usually overpriced, in my experience.

I have gold coins and although they are at least worth melt value, I buy them more as a collectible than an investment.

If you are considering gold as an investment, rather than purchasing hard assets like coins, you could look at investing in gold mining companies.

I believe in every issue of Barron's, there is a list of Gold Prices as well as the top 6 or 7 reliable coins such as the Canadian Maple, American Eagle, etc. It will also give you the premium of the coin over the spot rate.