How to Navigate Gold Bullion Coin Trading? Do’s and Don’t ‘s

Gold bullion coins are alluring and millions invest in it per day. Canadian Maple Lead and American Eagle are the ones which have a high level of gold purity and can be easily traded by precious metal traders and dealers. While the financial crisis did turn people to EFTs (Exchange Traded funds) but a movement away from it has surfaced.

Why are people moving away?

Some of those EFTs don’t actually own that physical gold and instead opt for trading via a gold index. These gold EFTs may even trade by gold contracts, which would make them really risky investments.

This is why people buy gold coins and gold bullion coins are preferred. Moreover:

  • The value of 1 ounce, 24 karat Maple Leaf does approximately match gold’s price.
  • The gold bullion experienced a meteoric rise from the year 2005 to 2011. The value of gold quadrupled during this period.

But what goes up, must come down, and the price of these gold coins has shown a recent decline.

You might ask- Are there any downsides to buy gold coins?

Yes, and those are:

  • The prices fluctuate abruptly and wildly.
  • They aren’t meant for trading and so one should sit on them for a min of 3 years.
  • Dealers don’t accept credit cards for the gold purchases.
  • Selling those coins will mean shipping them to the dealer’s first by packaging them first in coin protectors which are wrapped up in bubble wrap. Then that package has to be tracked after it is sent. Moreover, the coins also have to be insured for the full value. So it is a laborious process.

buy gold coins

So how to handle gold coins? Here as some tips:

  • Stick on with North American ones like the American Eagle and Canadian Maple Leaf gold coins are easiest to sell and buy. You should basically stick with widely used gold coins. You can also buy gold Toronto.
  • These American Eagle coins can be admitted into retirement accounts of individual people.
  • Store those gold coins in safety deposit boxes rather than with a dealer. You can also use your home safe. Physical possession is best
  • Compare the dealer prices. You will be able to find online sites on precious metals exchange where these prices will be listed.
  • Aim for the lowest price, don’t pay more than five percent premiums.
  • Buy just one-ounce coins as the fractional coins of one quarter, one-tenth and half an ounce carry much higher premiums which are above the spot prices than the one-ounce ones.
  • Don’t buy gold coins that are rare as they require much more expertise while dealing with them.
  • Get to know the dealer’s buyback rules and policies. Remember that every dealer is different.

buy gold coins

In the end, keep in mind that everything you see isn’t gold, this market is full of scams and there are some red flags regarding it as well:

  • Dealers who offer free storage.
  • Or if there is delayed delivery.
  • Also, don’t buy gold coins from telemarketers because they charge high commissions.

Gold bullion coin trading is an art and you need to be a bit experienced with the unwritten rules of the market before jumping in as a full-time player.