[Posted March 24th, 2009]
Shown above is the 1906 10 Mark coin from Prussia. It was minted from 3.982 grams of 0.900 fine gold which converts to 0.1152 ounces of gold. At the time of writing the gold content of this coin was worth about US$108. The obverse of the coin depicts the portrait of King Wilhelm II of Prussia, who also happened to be the Emperor of Germany. This Wilhelm II is the same famed Kaiser who was in charge of Germany during all of World War One when he was known mockingly as Kaiser Bill by his enemies. The reverse shows the so called Type III German Coat of Arms. The reverse also shows the A mintmark which was Berlin, where 542,000 of these coins were minted for circulation in 1906. Interestingly a very small number (150) of proof strikings were also made in 1906.
This is an interesting historical coin that is available for not much more than the value of the gold it contains. In 1871 when German forces defeated France in the Franco-Prussian war the German Empire was formed. Prussia was the major state of this new empire and it’s king, King Wilhelm I was declared Emperor (Kaiser) of the empire. The new empire consisted of 4 kingdoms, 18 dukedoms, 3 free cities and the region of Alsace-Lorraine. The Empire of Germany and the Kingdom of Prussia were brought to an end with Germany’s defeat in World War 1. As you can see, there’s a lot of history to be found in such a deceptively small coin! Yet another reason why coin collecting is such a fascinating hobby.
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[Posted March 24th, 2009]
If you’re one of those people who’d rather hide their money under a mattress than give it to an investment adviser, you’re ignoring a basic economic fact: Mattresses are expensive. Let’s say you want to hide $500 under a mattress. A queen mattress capable of hiding such a sum could run you as much as, say, $500. Do the math: By the time you’ve paid for the mattress, you’ll have no money left to hide under it. Smart move, asshole.
While gold coins may retain their value in a turbulent market, they will be worth nothing if they fall out of your pocket and roll down a grate.
Okay, let’s say you have thousands of dollars to hide. That problem can be solved by buying a bigger mattress, like a California King, right? Guess again, dim-bulb. A larger mattress may indeed conceal your money, but it’s also an inviting place for a thief to hide inside. Try this scenario on for size: A thief breaks into your home, hides inside your mattress, and when you’re not looking cuts his way out of said mattress and robs you blind. Not only are you out all your dough, you’ve just lost a perfectly good mattress. Ever try to repair a mattress that a thief has been hiding inside and then cut his way out of? Well, guess what: You can’t. Now, you’re probably saying to yourself, "Hey, wait a minute — a thief has never hidden inside someone’s mattress." Well, there’s a first time for everything, and why would you want to take such a risk? We’ve already established that you don’t know what the hell you’re doing.
If you’re still averse to hiring an investment adviser, you may opt for a "do it yourself" approach, putting all your money in gold coins or cash. While gold coins may retain their value in a turbulent market, they will be worth nothing if they fall out of your pocket and roll down a grate. Equally risky is cash, especially if you keep it in white cloth moneybags with big dollar signs printed on the sides. If a thief gets a load of said bags, he’ll pop right out of your mattress and purloin them. Hey, that’s the same thief who stole your money before! Now how dumb do you feel? An old saying comes to mind: "Fool me once, shame on you; fool me twice, it’s time to hire an investment adviser." So stop your bellyaching and let’s choose one, shall we? I’ll go extra slowly so even you can understand.
Investment advisers come in all shapes and sizes. Fat ones, skinny ones, shifty-eyed ones with pencil moustaches and electronic ankle bracelets. From the list I just mentioned, do not, I repeat, do not hire the fat ones. If they’re so well fed, it’s probably because they’ve been paying for three-lobster lunches with money skimmed from their clients’ 401(k)s. Similarly, do not hire your mother. She may seem trustworthy, but think of all the times she’s lied to you in the past, like in middle school when kids started calling you a dickwad and she said it’s just because they’re jealous. I’ve got a name for your mother and it rhymes with "pants on fire." With her history of fibbing, you might as well cut a slit in your mattress and hand your cash directly to the thief who lives in there.
What’s in a name? Plenty, when it comes to choosing an investment adviser. Much gallows humor has been devoted to the fact that Bernie Madoff literally "made off" with his clients’ money. Why his suspicious-sounding pun name didn’t set off alarm bells is anybody’s guess, but lesson learned. Investment advisers to avoid: Herbie Embezzlesteal, Charlie Takeyourdollars and Jake Pickpocketovich.
Which leads me to one final question: Should your dog be your investment adviser? Let me put it this way: Mine is. Last September I gave my Jack Russell terrier, Daisy, all of my money to invest. She promptly dug a hole in my backyard and buried my entire nest egg. Since then, I’ve beaten the S & P 500 by more than 50 percent. Now, you’re probably wondering, what if your dog isn’t as smart as Daisy? No worries. He’s probably still smarter than you.
Writer and comedian Andy Borowitz’s work has appeared in Conde Nast Portfolio, the New Yorker and The New York Times. His Web site is BorowitzReport.com.
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[Posted March 23rd, 2009]
Interest in gold is soaring for the usual two reasons, according to gold expert Scott Travers: people see it “as a hedge against calamity and as a hedge against inflation.” He recommends owning collectible gold coins as opposed to bullion, mining stocks, futures, and common coins such as Canadian Maple Leafs and Krugerands. As explained in last week’s column, in the event the price of gold declines, collectible coins tend to hold their value better.
Trouble is, it’s hard for the average person to know whether the coins they’re buying are the real deal and whether they’re paying a fair price. Here’s where common sense and a little bit of homework can really pay off.
First and foremost, it’s essential to buy coins that are certified by one of the two nationally recognized grading services — either PCGS, the Professional Coin Grading Service, or NCG, the Numismatic Guarantee Corporation. Beware of “certifications” from other services that have similar-sounding names. Collectible coins carry a rating of “60” or higher. (“70” is the highest rating a coin can receive.)
Travers, author of The Coin Collector’s Survival Manuel, which was just published in its 6th edition, recommends collectible gold coins such as Saint Gaudens or Liberty Head double eagles. In general, these should be priced at a small premium over the current value of the actual gold the coin contains (~1 ounce). For instance, he says if gold is selling for $1,000/ounce, a Saint Gaudens double eagle gold piece graded 60-62 should cost around $1,700.
He also strongly advises only doing business with an authorized dealer affiliated with either PCGS or NGC. You can find a list of dealers at www.pcgs.com or www.ngccoin.com.
Be wary of purchasing coins online. It’s difficult to accurately assess the quality of a coin based on an online photo or to know whether the certification is legitimate. However, the Internet is a tremendous help when it comes to judging whether the price you’re quoted for a coin is fair. Pcgs.com offers a comprehensive price guide that allows you to compare coin quality and cost.
Once the coins are in your possession, Travers stresses you don’t want to store them in a bank safe deposit box — which he says, “goes against the idea of using gold as an insurance policy.” If the bank locks it doors, owning gold doesn’t do you any good because you can’t access it. He’s adamant that you should “always take physical possession of gold.”
There’s an entire chapter in The Coin Collector’s Survival Manual on the topic of how to store your gold. According to Travers, in the past three months he’s received more questions about this than at any time since the first edition of the book came out 25 years ago.
Shoe boxes are out. Home safes are a must. But not just any home safe will do. Since collectible gold coins are housed in plastic cases, this is more complicated than you might imagine. If the coins are stored in a typical “fire safe,” if there’s a fire the internal temperature could rise to 300-degrees or more. Paper documents would survive, but plastic would melt. You’d have to take your coins to a specialist to have them cleaned — a costly process.
Instead, Travers says collectible gold coins should be stored in a “data” safe, which is designed to protect DVDs and similar documents that are susceptible to damage at lower temperatures. A data safe only gets as hot as 125-degrees or less in the event of a fire or explosion — not enough to melt plastic.
Travers advises against hiring someone to install the safe for you. “Trust nobody.” Instead, he says, buy a data safe “off the shelf at Target (TGT: 33.06, 2.73, 9%) or Wal-Mart (WMT: 51.48, 1.92, 3.87%).” He further recommends making the purchase at a store that is not in your immediate neighborhood in order to reduce the possibility of being recognized by someone who might know where you live. (Dark glasses, fake moustache and baseball cap are optional.)
As an additional precaution, he advises that you “pay with cash.” No sense leaving a paper trail via your credit card. When you get the safe home, be sure to bolt it to the floor.
Presumably not in the foyer.
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[Posted March 23rd, 2009]
By Yasumasa Song
March 23 (Bloomberg) — Young Japanese retail investors are turning to gold purchasing plans at an unprecedented rate as they seek to protect their finances amid a deepening recession, an official at the nation’s largest bullion retailer said.
“We’ve never seen anything like this,” said Noriyuki Abe, an executive at the precious metals division of Tanaka Kikinzoku Kogyo K.K. The company has signed up more than 4,000 customers a month for its gold accumulation plan since October. Previously “the tally wouldn’t exceed 1,000,” he said in an interview.
Financial turmoil has boosted bullion demand worldwide, increasing sales of Austrian Philharmonic gold coins and driving holdings to all-time highs in the SPDR Gold Trust, the biggest exchange-traded fund backed by the metal. Rising interest in long-term investment plans by customers in Japan aged from 20 to 40 “stood out,” according to Abe at Tanaka Kikinzoku.
“A slow-and-steady approach to investing is in line with the values of Japanese young people, who emphasize stability in their lives,” said Koichiro Kamei, managing director of Tokyo- based Market Strategy Institute Inc.
Tanaka Kikinzoku’s gold accumulation program, started in 1988, allows customers to have as little as 3,000 yen ($31) a month debited from their bank accounts, with many choosing deductions of 10,000 yen. The amount is set in advance, evening out the investment risk over time. The gold is stored by the company on behalf of the investors.
Rising Deposits
The number of deposits gained by 60,000 in the past year to about 350,000, according to Tanaka Kikinzoku. Almost 40 percent of customers are in their twenties and thirties compared with “extremely low” levels about three years ago, Abe said today.
Gold, viewed by some investors as a haven when asset values drop, rose to an 11-month high of $1,006.29 an ounce on Feb. 20 as a global economic slump deepened. Japan’s factory output fell by a record in January adding to evidence the nation’s recession may become the worst since 1945. Companies including Sony Corp. and Toyota Motor Corp. have fired thousands of workers.
Mitsubishi Materials Corp., Japan’s third-largest copper producer and a bullion dealer, has opened 33 percent more personal gold accumulation accounts in the half-year since September, said Kouichi Saito, bullion trading group manag er.
“We didn’t think we would see such an increase in accounts because we had assumed that the market was saturated, with those 50 or older being the main customers interested,” said Saito.
The gold accumulation plans offered in Japan don’t exist overseas, according to Kamei. A proliferation in the products sold by banks and trading houses reflected the popularity of savings deduction plans for paying bills, he said.
Japanese people in their twenties have shown “stronger tendencies to save money” over the past two years, according to surveys by advertising agency Hakuhodo DY Holdings Inc. “They don’t own cars because they are expensive to maintain, don’t drink much, and don’t go on trips abroad,” said Yohei Harada, a researcher at Hakuhodo’s research and development division.
To contact the reporter on this story: Yasumasa Song in Tokyo at ysong@bloomberg.net
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[Posted March 22nd, 2009]
By Sara Nunnally
Today’s panic-driven markets are wiping out your portfolio… But a simple investment in gold and silver can provide the safety you need for today’s economy.
Here are four easy ways to invest in gold and silver. Investing in gold and silver has long been a way for investors – both individual and corporate – to diversify and “weatherize” their portfolios from rainy day markets.
Precious metals act as a hedge against market downturns. For example, when the Dow Jones Industrial Average dropped 380.48 points and fell below 8,000 on February 10, 2009, gold futures climbed $21.40 in a single day.
And since then, gold futures topped $1,000 an ounce.
With these types of movements, it’s no surprise that we’ve seen those “Cash 4 Gold” commercials break into the biggest advertising venue of the year – the Super Bowl.
But is turning in your old jewelry for cash the best way to hedge your portfolio with precious metals?
Probably not. There are a number of different ways to invest in gold and silver, ranging from gold and silver mining companies to actual gold and silver coins. Let’s take a look at your options.
Investing in Gold and Silver Mining Companies
Investors may be a bit wary of investing in the stock market right now, even if the stock is a gold or silver mining company. Of all the options for investing in gold and silver, investing in mining companies is the least pure way.
Let me explain.
Mining companies can range from large businesses with massive gold and silver reserves all the way down to the tiny development-stage company that owns some land but doesn’t even know what’s in the ground yet.
And investors have to deal with all different kinds of costs, like energy and equipment, mining licensing, labor, and any number of other things.
But that doesn’t mean mining companies can’t be a good investment option.
In fact, some companies can offer you tremendous gains that surpass the hedging and safety potential of buying the actual precious metals. Here’s what to look for if you’re considering investing in gold and silver mining companies, aside from actual reserves in the ground and being produced – which is a must.
Factor #1: Cost of Extraction
First and foremost, you need to compare mining companies’ cost of extraction, meaning how much money it takes to get an ounce of gold out of the ground. The lower the costs, the higher the profits… for the most part.
For example, the company that can extract gold at a cost of only $300 an ounce will have a distinct cost advantage over the miner with extraction costs at $420 an ounce.*
(*Extraction numbers are only an example, not representative of true extraction costs.)
Factor #2: Leverage
Secondly, you need to look at leverage, which has a direct effect on earnings multiples – which affects how much money investors should expect to make in the future.
Any increase in gold prices affects the percentage profits of a mining company, but for higher-cost companies, profits jump by a higher percentage than lower-cost companies.
For example, if gold climbs from $800 an ounce to $850 an ounce, lower-cost miners see their profits rise from $500 to $550, or 10%. Higher-cost companies see their profits rise from $380 to $430, or 13.2%. That means that higher-cost companies should see a bigger rise (32% bigger) in their share prices compared to the lower-cost companies’ shares.
Factor #3: Hedging
And lastly, look at a mining company’s hedging policies. Hedging means a mining company enters a contract to sell their gold or silver to someone for a fixed price, no matter what the actual price might be at the time of the sale. Companies that hedge most of their production are severely limiting their leverage, which, as we’ve said, can have a strong effect on earnings multiples and share prices.
So, for example, let’s assume a company with an extracting cost of $400 an ounce hedges production at $800 an ounce, meaning they’ve entered a contract to sell their gold for $800 an ounce. If gold continues to rally past $800 to $900, they’ve eliminated a massive chunk of their profit potential, capping their leverage at $800 and profit at $400 an ounce.
An unleveraged company with the same extracting costs can ride that profit all the way up to $500 an ounce – or 25% more than its competitor.
So for investors looking to invest in gold and silver mining companies, they should take these three factors into consideration.
Before you decide to delve into every mining company’s leverage and hedging strategies, let’s look at some other precious metal investing options, like exchange-traded funds (ETFs).
Investing in Gold and Silver ETFs
Exchange-traded funds have sprung up by the dozen over the past decade. Investopedia.com defines an ETF as “a security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange.”
Now, in the gold and silver sector, ETFs can track a basket of gold and silver mining companies, or the commodities themselves. Let’s look specifically at the ETFs tracking gold and silver prices, like the SPDR Gold Shares ETF (GLD:NYSE) and the iShares Silver Trust (SLV:NYSE). There are others, but these two are the most liquid in gold and silver respectively.
These ETFs track the share price of gold and silver (respectively), and are in part backed by the actual metals.
That means investors can move in and out of gold and silver like stocks, while profiting from the price moves of gold and silver without worrying about costs, like energy and equipment, mining licensing, labor, as with mining companies.
With ETFs, liquidity is one of the things investors need to take into account. A large amount of trades ensures that investors can buy or sell without any difficulty. It also suggests that the fund will be around for a long time… Great for long-term investors, particularly in the gold and silver sector.
And for faster-moving traders, GLD and SLV offer options, which can mean even more leverage for aggressive investors.
That leads us to the futures market.
Investing in Gold and Silver Futures
Investing in gold and silver futures is not for the faint of heart, nor the shallow-pocket investor. With futures, you take on the risk of the commodity price moving drastically against you, and you can incur significant losses.
But the rewards can also be significant.
Here’s how it works… The World Gold Council writes, “Futures prices are determined by the market’s perception of what the carrying costs – including the interest cost of borrowing gold plus insurance and storage charges – ought to be at any one time. The futures price is usually higher than the spot price for gold.”
But when an investor initially buys a futures contract, the cash deposit is only a fraction of the price of the gold’s worth. That means investors don’t have to pay for the full value of the futures contract until he or she “takes delivery” of the actual gold.
And if the price of gold climbed higher than the price of the futures contract, then the investor has made a profit without forking over a lot of cash.
Now, a lot has just been said in those last few sentences. Let’s back up. The World Gold Council says, “Gold futures contracts are firm commitments to make or take delivery of a specified quantity and purity of gold on a prescribed date at an agreed price.”
If you’re buying a futures contract, expect to be holding that gold or silver in your hand… The investor pays a deposit when they first buy the futures contract, and pays the rest once they have the gold or silver.
That’s great if the value of that gold or silver has climbed, but not so great if gold or silver prices fall.
Here’s an example. If you buy a futures contract at $950 an ounce, and gold rallies to $1,000 an ounce, you’ve just made $50 on every ounce that you bought (and most contracts are traded in bundles of 100, just like options).
But if gold falls to $900 an ounce, you just lost $50 on every ounce you purchased, and you still have to pay the full value of the futures contract.
You can see that an investor can really take it on the chin if prices move drastically against him or her.
That kind of risk isn’t for the everyday investor. But one method of investing in gold and silver can be used by every investor, and that’s simply buying gold and silver outright.
Investing in Gold and Silver
Be it bars, bullion or coins, this sure-fire way of investing in gold and silver cuts out all the worry. You don’t have to pay any fees, like you do with the gold and silver ETFs, you don’t have to pay for a mining companies energy costs, and you don’t have to buy 100 ounces in a futures contract if you don’t want to.
Let’s talk about coins specifically, because here’s where things get interesting. In addition to the actual gold or silver value of the coin, you can also take advantage of the demand and rarity of certain coins. Continued…
Here’s a specific example: U.S. Mint Silver Eagles.
In 2008 alone, the U.S. Mint shattered its previous sales record of 10.4 million by selling almost 20 million Silver Eagles – and demand still hasn’t cooled off. The premiums folks are paying are staggering – some of the highest premiums ever recorded for Eagles.
That means investors are paying more for this coin than the actual value of the silver in the coin.
And the U.S. Mint Silver Eagle isn’t even a rare coin…
When high demand meets rarity, that’s when premiums skyrocket… sometimes even doubling the initial price of the coin.
So coins are an easy way to buy into the gold and silver sector… and they offer the additional benefit of “consumer interest leverage.” More than just demand for safety or a portfolio hedge, collectors’ interest in gold and silver coins can really boost an investor’s profits.
Every Portfolio Should Have Gold and Silver
There are a number of different ways you can invest in gold and silver… through mining companies, exchange-traded funds, futures, options on stocks, funds and futures, and through buying bars, bullion and coins.
Each offers its own advantages and risk profiles, and investors can tailor their investments to their own portfolios.
But whichever method you use to get invested in gold and silver, keep in mind that any allocation to precious metals can offer a safety net that’s much needed in today’s markets.
Talk to your broker about these strategies, or get involved with a coin distributor to snap up the next U.S. Mint Silver Eagle, or other hot coin that could double in value.
If you’d like to get in on these Silver Eagles, you can do so right now with this special, limited offer. It’s a great way to take advantage of today’s silver boom… and even benefit from this asset that’s outperforming the silver market.
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[Posted March 22nd, 2009]
The Gold Rush: Don't Get BurnedWith the yellow according to the World Gold Council. Between Sept.
metal near $1,000 per ounce, investors are 15 and early December, Blanchard sold more gold
clamoring for coins and bullion. But buying gold than it had in the prior three years, despite the
in its physical form can be trickyBy David Mint's 45-day suspension of sales of one-ounce
Bogoslaw If you had any doubt that the prime American gold eagle coins after the collapse of
motivation for investors has shifted from greed to Lehman Brothers. Blanchard had to sell "whatever
fear, look at the price of gold. The spot price product we could get our hands on"—Canadian maples
for the yellow metal reached $992.43 an ounce on or South African krugerrands—until supply of
Feb. 20, its highest level since hitting $1,002.70 American eagles resumed, says Beahm. "At that
on Mar. 17, 2008, the day that Bear Stearns particular time, nobody really cared what they had
collapsed. The spot price has climbed more than as long as they had gold." To keep the premium
39percent from a near-term low of $712.30 on Nov. they pay over the spot price to a minimum, Meger
12, 2008. Demand for physical gold has exploded as at Alaron recommends investors buy from one of the
the deepening financial crisis and ongoing slide four authorized distributors that buy directly
in stock prices has pushed nervous investors into from the U.S. Mint. The Mint charges premiums of
safe-haven investments. But new investors need to 3percent on one-ounce gold coins, 5percent on
be careful about who they buy from, since half-ounce coins, and 7percent on quarter-ounce
inexperienced people seeking to take advantage of coins when it sells to authorized purchasers,
opportunities in the market are opening coin which in turn mark up prices to dealers and
dealerships without being aware of the financial individual investors. While Alaron can't buy
risks or legal compliance issues involved. How to directly from the Mint, it benefits from having a
Choose a Dealer "These days, with everything going partnership with a firm that is an authorized
on with the [Bernard] Madoff scandal and now the purchaser. Hedging Gold Purchases Meger also
[Allen] Stanford scandal, you have to know exactly suggests buying from a dealer who is linked to a
who you're dealing with," says David Beahm, brokerage firm with a reputable name in the
vice-president at Blanchard & Co., a leading commodities industry and who sells only
retail dealer of gold coins and other exchange-approved brands, hallmarked bars, and
precious-metals products based in New Orleans. The reputable mint coins. "We can offer clients the
best way to ensure the quality of what you're ability to hedge their purchases with options or
buying is to do your due diligence when choosing a futures contracts," he says. A buy-and-hold
dealer, he says. The Better Business Bureau is a investor who expects to see gold prices pull back
good place to start, at least to be able to see in the short term isn't likely to go to the
whether a certain dealer's clients are satisfied trouble of taking gold out of the warehouse to
or not. And the Internet makes due diligence that sell it, but might think it advantageous to hedge
much easier. For instance, you can check whether a his position by selling a futures contract. "It's
dealer belongs to the Professional Numismatists nice to be able to deal with a brokerage firm that
Guild (PNG), a nationwide association based in offers you that ability," he says. Only a few of
Fallbrook, Calif., on the PNG Web site. Be wary of the 30 or so refiners whose brands are listed on
incoming cold calls from dealers unless it's the New York Mercantile Exchange's Web site sell
someone with whom you have a long-standing gold bars in retail sizes of one, five, and 10
relationship, advises Diane Piret, industry ounces. Until about a month ago, those smaller
affairs director at the Industry Council for retail forms of gold were in short supply, but now
Tangible Assets (ICTA), the national trade that refiners realize they can get significantly
association for rare coin and precious-metals higher premiums for them, they are starting to
dealers. Investors are better off seeking out shift resources from jewelry and other industrial
dealers on their own. It's a good idea to look for fabrication to increase production of the smaller
companies whose dealers are members of the PNG, retail forms, says Meger. When ordering coins from
which requires dealers to have five years of a dealer, it's best to send your money in as
experience as numismatists, have a net financial quickly as possible, since dealers will only lock
worth of at least $250,000, and be elected to the in prices once they've received "good funds" in
guild by a majority of the present members. PNG the form of a bank wire transfer or cash. "The
members must abide by guild rules, which include price could change from the time you contact us
an arbitration process to resolve any dispute over until the funds are good," says Beahm.
product quality between buyers and sellers. It's Alternatives to Bullion From a cost perspective,
treacherous to enter the bullion market with no there are far more efficient ways to buy gold than
understanding of how tight the margins are and how coins or bars, where uncertainty about the size of
rapidly investors can lose their shirts, given the markups is compounded by shipping costs, says
volatility in gold prices, says Piret. Although Leonard Kaplan, president of Prospector Asset
she has received five or six inquiries recently Management in Evanston, Ill. "The alternatives are
from people asking which laws they need to comply so much better and so much safer. You can either
with in order to establish a dealership, she buy futures or ETFs. Then you're dealing with
doubts many of them have subsequently opened a regulated industries, known quantities, not Joe
business. "A dealer who buys and sells over Schmo coin dealer who's been around for two
$50,000 with all [his] customers of weeks," he says. Gold investors have to pay
bullion-related products…needs to be compliant shipping and storage costs on top of the hefty
with section 352 of the Patriot Act and have a premiums they're already paying above the spot
compliance officer," she says. "Cash reporting price. "Is it worth $6,000 to $8,000 on 100 ounces
laws and money laundering laws are very of gold to have it in your hand, and to lose
serious."Keep Close to the Spot Price New liquidity, and to pay storage? I don't think so,"
investors in the yellow metal also need to keep an Kaplan says. Some strategists suggest waiting for
eye on the spot price of gold to ensure they're a pullback in gold prices, to around $950, before
not being charged too high a premium for gold buying more. But $992 may prove to be cheap a few
coins. It's common these days for dealers to sell months from now if things break the gold bulls'
gold coins at 8percent or 9percent above the spot way. Beahm at Blanchard believes spot gold is
price, and that's not necessarily bad, given the poised to reach at least $1,500 by the end of this
supply constraints for the retail product due to year, in view of all the liquidity the government
higher demand, says Dave Meger, managing director is putting into the economy, which will eventually
of metals services at Alaron Trading in Chicago. boost inflation. Right now, the fundamentals look
His firm has had to turn away orders occasionally good for gold. But remember that the yellow metal
in recent months when it hasn't received fresh has tripped up smart investors in years past, and
product from the U.S. Mint. During the fourth will likely do so in the current boom. Bogoslaw is
quarter of 2008, U.S. consumer demand for gold a reporter for BusinessWeek's Investing channel. $
coins and bars jumped to nearly five times the
amount from a year earlier, to 34.8 metric tons,
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[Posted March 22nd, 2009]
The America Buffalo Gold Coin is a gold bullion coin produced by the US Mint, which started being sold on June 22, 2006. The most notable difference between US American Eagle coins and American Buffalo coins is that the American buffalo is 24 karat bullion gold bullion, in other words 99.99% pure gold. The flagship American Eagles are 22 karat gold, in other words .9167% pure gold, with the remainder being a silver and copper alloy. Buffalo gold coins were introduced as a result of increasing global demand for 24 karat gold coins, and the popularity of Canadian Maple Leafs, Chinese Gold Pandas, and other 99.99 pure gold bullion items.
 The 1 oz gold buffalo coin has a face value of $50. But as with other coins, this amount simply denotes that the coin is legal tender and has no real connection to the coin’s true value, which depends on the current gold spot price. The design of Gold Buffalos is based on that of the Buffalo Nickel, which was minted from 1913 to 1938. The design, by James Earle Frase, features an image of a Native American man on the obverse, and an image of an American bison (buffalo) on the reverse. The obverse face also includes the date at the bottom left, and the word "Liberty" along the top right. The reverse face features the words "United States of America" along the top edge, below that to the righthand ( side are the words "E PLURIBUS UNUM" which is Latin for "Out of many, one" (a motto used in many official American symbols). It also reads "In God We Trust" at the bottom left, and at the bottom the face value, and below the face value the coin’s weight and purity of ".9999 Fine Gold".
The American buffalo gold bullion coin is also available in fractional sizes of 1/2 oz with a face value of $25, 1/4 oz with a face value of $10, and 1/10 oz with a face value of $5.
Buffalo gold coins have also been minted in uncirculated and proof versions of higher production quality (and high premium pricing), but these have been cancelled for the year 2009 because of unprecedented demand for gold bullion coins. In addition, 2009 production of the standard bullion buffalo coins have been delayed until further notice. Most of the increasing investment demand is for American gold eagles, so the US Mint is setting aside most of its gold stock for their production.
American buffalos struck in previous years can be found in coin shops and bullion shops. But you may have to shop around to find one because there is no supply of new coins this year.
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[Posted March 22nd, 2009]
CoinsBullions
Gold is a precious metal found underground around the world. Gold is considered by many as a store of value and a safe haven for wealth in economic crisis. One of gold’s important properties is psychological, because it is so closely associated with money. This gives it an immeasurable advantage over other tangible stores of wealth.
American Eagle Bullion Coins provide investors with a convenient and cost-effective way to add a small amount of physical platinum, gold, or silver to their investment portfolios. Since their launch in 1986, gold, platinum and silver American Eagles gold coin have become leading bullion coin investment products.
American Buffalo Gold Bullion Coins are the first .9999 fine 24-karat gold coins ever struck by the United States Mint and offered for sale through a network of Authorized Purchasers. The $50 gold coins will be available to members of the public seeking a simple and tangible means to own and invest in 24-karat gold in the form of legal tender coins whose content and purity is guaranteed by the United States Government.
Gold has attracted investors throughout the centuries, protecting their wealth and providing a ’safe haven’ in troubled or uncertain times. This appeal remains compelling for modern investors. Although there are also a number of other reasons that underpin the widespread renewal of investor interest in gold.
American gold coins have been wanted by collectors for the possibility of enormous value particularly if the currency is rare, in good state, and is in soaring demand. US coin sellers have set prices and dollar amounts of worth on many types of United States money. The worth is determined by four main factors. Scarcity or rarity is the main factor for discovering the worth. The rarer the legal tender, the higher its value.
Author Bio - Inventory of Coins and Bullions Include many types of Bullion Coins like American Gold Eagles, Gold Bullion Coins and bars. In the future, coins and Bullions will expand by including jewelry and gift items.
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[Posted March 22nd, 2009]
by Christopher Sewell
Numismatics– that is, the study of coins– is a very important ancillary discipline to the study of just about any human society, including our own. In the last several hundred years, studying coins has grown into a goal in itself for a lot of folks. The academic discipline remains fairly small, occupying a niche in the academic sphere, so many important contributions have actually been made by hobbyists. Coins are intriguing since they offer a couple of facets to be examined.
Initially, their worth then and now as money. When in the Third Century AD the Romans devalued their coinage, Roman economic power began to slip,roman coinage was stable in its value for centuries because of its consistent gold content.
That is, little pieces of the coin have been clipped off by some unscrupulous person to be add to a pile of such clippings for later melting down and personal use,so long as coins contained gold or silver, one finds the sides “clipped”. Monetary value can be connected to historical issues as well: the coins of Maria Theresa were famous for their quality and stability, not to mention the art work. Jand the obverse as well, but they tend to remain constant),and here is the second fascination.
The ancient Greek cities each issued their own coinage, in the case of Athens it was mainly silver. Some of these coins are works of art in themselves, especially the golden coins from Sicily. Even more practical are Roman coins or any other coin that was minted after the dark ages in Europe. Still many fine busts of rulers appear on coins from all over Europe, as indeed on American coins, especially those from the early twentieth century before paper (by rule) money became too common.
Some of these coins are works of art in themselves, especially the golden coins from Sicily. Roman coins are a bit more practical, as are most coins minted in Europe in the middle ages and later. Especially those from the early twentieth century before paper,still many fine busts of rulers appear on coins from all over Europe, as indeed on American coins. fiat money became too common. The American coins tend to be constant in subject, unlike the coins from Europe, though the Roosevelt dime is an obvious exception This does not, however, detract from the beauty of many early American coins which are highly prized by collectors and professionals.
Many silver dollars are great examples of the numismatic art; they are particularly sought after. The Buffalo nickel is also proving difficult to find. The marks indicating at which place the coin was minted; the date of issue; the subjects on the reverse,the marks indicating at which place the coin was minted; the date of issue; the subjects on the reverse. and the obverse as well, but they tend to remain constant. You can begin collecting coins relatively cheaply and easily; the fun comes with hunting down and finding that special coin that makes your collection more complete.
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[Posted March 19th, 2009]
By Nicholas Tan
What are bullion coins? These coins may have high values because they are not only limited; but also they may have been found in shipwrecks, or they may come from the ancient times. Bullion coins are the type of collector’s items that many people look for.
The silver bullion could be the most well known type of bullion that is selling very well in the internet aside from those that are to be considered to be most expensive and valuable items in the world.Some high priced coins that are displayed on the internet include the silver ingot. The silver ingot was said to have been found in the Spanish ship Atocha that sank in the ocean. This ship was found to contain treasures and artifacts including silver ingots. Others claim that the silver ingots were recovered from an old Colorado Mining area. Coins were found everywhere and were said to have been hidden by the miners.The silver Maple Leaf Coins, which are officially sealed, are also popular among collectors. These coins came from the Royal Canadian Mint and include the Walking Liberty half-dollars and the dealer roll first-strike 1994 U.S. Eagles. These items were a collection of the Franklin Mint which had more than 100 masterpieces in his memorabilia. Most bullion collectors prefer the gold billion. Some famous bullion gold coins include the gold Krugerrands, which are from South Africa.
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