How should I invest in coins and precious metals?

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One of the most common questions I get asked is, “How should I invest in coins & precious metals?”. As simple as the question sounds, it has a long answer. There is a lot of bad advice out there that you have to watch out for. Many try to convince you to go for gold or that gold & silver is the only way to go when it comes to investing in numismatics. There are many ways to invest in precious metals & coins. You just have to go the route that you feel most comfortable with.

The key to investing your money is diversity. Don’t ever through all your money into just one thing, that includes whether you’re investing in stamps, coins, collectibles, precious metals, tax liens & yes even the stock market. Many companies offer to send out large overwhelming manuals on investing in coins & precious metals. They tend to be long and technical and all many just want is a brief idea. I will try to go more technical in the a future post. Please note prices fluctuate & always be cautious as there are individuals who will swindle you. In all honesty gold prices actually fluctuate hourly hence one of the reasons I don’t like dealing with gold. (Always when buying gold buy from a reputable dealer. Pawn shops overcharge & unknowingly sell fakes.)

Many of the large companies will push gold, but it’s expensive & I’ve seen the price drop $50 – $100 bucks in a day. I want you to keep in mind that investing in precious metals is not a short term investment. you have to watch the market & have patience. The same falls true for silver & coins.  Many of the investment companies that want you to invest in gold have purchasing limits & monthly purchasing requirements. Companies like, Goldline, have a requirement of investing $10,000. Many companies are also not selling physical gold they are selling gold futures, like stocks. I personally don’t recommend paper trading gold. Having physical gold in your possession or in a safe storage facility is preferred.

If I haven’t scared you off of gold yet, I want you to know that even without having a couple thousand dollars to invest you can still get into gold without much risk. 1/10th oz coins can be bought for about $140-$150 a piece even when gold spot price are at $1300. They are also, much easier to sell than the large 1 oz coins.

Although the large companies don’t push silver as much it is a cheap easy investment. You are less likely to lose much on fakes, but it does happen. Even if you did buy fake silver it’s much easier to swallow a $30 loss than a $150 one. I’ll also get into fake silver in a future post. Silver prices also fluctuate, but not quite like gold. Keep in mind a few years ago it was at $45 an ounce wholesale & now the smelters are paying about $21 an oz. When investing in silver many buy silver rounds & bars. To be on the safe side trust rounds & bars from companies like Engelhard. Engelhard is a smelter who has been assaying gold for over a century.

One major mistake people make when investing in silver coins is they think all old coins are pure silver or gold, they are not. Granted MOST if not all old US gold coins are 24k which is deemed pure gold, but this varies from country to country. In the US,  Dollars, Half Dollars, Quarters & Dimes made in 1964 or older are 90% silver.  In 1965 – 1970, only the half dollars were made with 40% silver. When silver is up dealer will buy 40% but with it in the $20’s many will pass on it.

One recommendation I do want to make is if you are the cautious type and wish there was some kind of safety net, well there actually is one available. If you’re looking to invest in silver & gold for high-quality coins with a price protection guarantee for up to 5 years….. There is only one company, Numis Network I know that offers such a protection plan. You can sign up for a coin of the month program and have an MS70 silver coin sent to you each month or just buy individual coins.

The metal doesn’t always make the coin nor does the date. If you are not into collecting coins by date as most collectors, you may want to do some research & legwork into what you may want to obtain for investment purposes. Here are a few suggestions.  (By the way please feel free to comment below & share this blog.)

  • (CC) Carson City Morgans regardless of condition always go up in value.
  • Anything in MS70
  • Key dates
  • Semi Key Dates
  • Error Coins

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