The Risks Associated With Buying Gold Coins
Buying gold coins can be very rewarding and potentially profitable. But there are many precautions that one must be aware of before buying their first gold coins. These precautions can mean the difference between a sizeable gain or a huge loss. Some of these precautions may not be as obvious as others.
The first precaution is that buyers must buy their coins slabbed or straight from the U.S. Mint. The chance of guying a counterfeit gold coin is very real. The perpetrators can easily make a fake gold coin that costs $200 dollars in gold, but can sell for thousands. A lot of times the percentage of gold within these coin are very low compared to the percentage of gold within the 파일코인채굴 . Even if the coin is real, you can still be ripped off. Gold dealers used to use a fine file to shave off a little gold off of each coin. By the end of the day, they would have a good amount of gold dust that they could sell later. So always buy them from the mint or slabbed by PCGS or NGC.
Lets say that you went to a reputable dealer so you don’t have to worry about being ripped off. Well, they have their own ways to rip you off. They try to sell you a Gold Eagle with a guarantee. A normal Gold Eagle might go for $115. But they might charge you $150 for a Gold Eagle that is guaranteed to grade an MS65 or better. Heck, it might even grade an MS70! The problem with this is that all the Gold Eagles today would grade an MS65 or better anyways. They will all grade an MS68 to MS70. So even if it graded an MS65, MS66, or MS67, it would be worth anymore money anyways. Furthermore, these coins will never grade an MS70. The ones that could have graded an MS70 have already been cherry picked. These companies always give you a one month guarantee. If it doesn’t grade the MS65 that they guarantee, they will give you a refund if you simply return the coin back to them within a month. The problem with this is, it takes almost a month to grade a coin. And while you’re waiting for them to ship your coin back, it will be at least a month for the whole process. But lets say that you make it by the nick of time. Once they receive your coin, they will refund your money. But, you’ve already lost $25-$35 dollars to grade the coin and you still have nothing to show.
Buying gold coins depends on the gold market. If you don’t be careful, you might end up losing a lot of your money. You notice that a certain group of gold coins keeps going up in value and it never seems to stop going up. So you buy in hoping to make money. It goes up when gold goes up. In bull markets, these coins can go sky high. But once the gold rush is over, these coins drop to pennies on the dollar. What happened? You bought the better date or common gold coin in the middle of its’ rise. It went up with the price of gold. You didn’t buy a rare gold coin because you didn’t have the extra $250K laying around. So you bought this better date for $25K and its’ book value kept rising. When gold collapsed, so did your coin’s value. Now it’s worth $6K. What were you thinking of? It could never be worth much more because it’s only a better date or a common date. It won’t recover until gold goes up to those levels again. You could easily be waiting for 20-30 more years before it recovers. So you might as well sell it and use the money for something else.
The next time you look for gold investments, make sure you buy a rare gold coin. If the coin is too expensive, trying buying a lower grade or switching to a different series. It’s almost worthless to buy a common gold coin