Gold Bullion

MARKET NEWS / PRECIOUS METALS
Precious Metals • Mar 08 2011
Gold Bullion
MPM Posted on March 8, 2011

WHY GOLD NOW?
Bullion coins are purchased primarily for their gold and silver value. They are minted by major governments, but are not intended to be used in circulation. Instead, they offer a way to invest directly in the different precious metals, trading at only a slight premium over their metal content.

An important measure of any investment is its liquidity: How easy is it to resell? Almost all gold bullion coins and bars are accepted in major investment markets worldwide.

Bullion is for those investors seeking narrow spreads between buy and sell prices. It’s easy to track the value of gold. For instance just take a look at any major newspaper reporting the daily price of gold or just visit our ” Quotes and Charts” page.

A gold bullion coin’s value is based on the price, plus a small premium to cover coinage and distribution costs. They are typically minted in four weights – 1/10, 1/4, 1/2 and 1 ounce – to fit a variety of budgets. The smaller sizes also make affordable and thoughtful gifts.

There are several bullion coins to choose from. We recommend the following coins because they are the most widely traded and accepted all over the world.

American Eagle Gold Coins
Authorized by the Bullion Coin Act of 1985, American Eagle Gold Bullion Coins quickly became one of the world’s leading gold bullion investment coins.

Produced from gold mined in the United States , American Eagles are imprinted with their gold content and legal tender “face” value. However, the face value is largely symbolic since their market value has historically been much higher. This has also caused some dealers to claim that American Eagle Gold Coins are “numismatic” coin, which is not only false, but we take issue with anyone who tries to convince you that they are. Please see our section on reporting requirements.

American Eagles use the durable 22 karat standard established for gold circulating coinage over 350 years ago. They contain their stated amount of pure gold, plus small amounts of alloy. This creates harder coins that resist scratching and marring, which can diminish resale value. Minted to exacting standards, the obverse (front) design is inspired by what’s often considered America ‘s most beautiful coin: Augustus Saint Gaudens’ celebrated $20 gold piece, minted from 1907-33. The reverse features a nest of American Eagles, symbolizing family tradition and unity.

Canadian Maple Leaf
Made of 99.99% pure gold, Gold Maple Leaf coins come in five sizes ranging from 1 oz. to 1/20 oz, (smaller sizes are often not available).

The Royal Canadian Mint was the first world mint to commercially produce 99.99% pure gold. Although this makes the coin “soft” and is more easily damged, this innovation gave the Gold Maple Leaf instant recognition when it was introduced to the bullion coin market years ago, and it remains the one of the most well recognized and sought after bullion coin in the market today.

South African Krugerrand
The South African Krugerrand was first released in 1967. For the first 20 years of its existence, it dominated the gold bullion market, and is still the most widely held gold coin in the world today. The obverse of this 22kt coin depicts Paul Kruger, President of the original South African Republic from 1883 to 1902, and the reverse shows the springbok, the national animal of South Africa .

Because the “spreads” are typically lower than other bullion coins, it makes it simple to know the exact value of your coins and are often purchased by “price conscience” investors. The Krugerrand is available in four sizes: one-ounce, half-ounce, quarter-ounce and one-tenth ounce. Each size relates easily to the current 1-ounce gold price.

Gold Bars
The credit Suisse gold bar is an internationally recognized product made of 24 kt gold. It is unique among gold bullion products in that it comes housed with its own certificate of authenticity and purity, including its own unique serial number, which is stamped both on the bar and on the certificate. At one time this bar was the only way to purchase 24 karat gold at close to bullion prices. As with all bullion items, the bar trades for its content plus a small premium to cover the cost of minting, distributing, and advertising.

Contact Us:  1-800-525-9556

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