Player j.j. sent the following question, "are as ingots (24 k gold 99.99%), and ' test ' different collector coins and contain the same content of gold? As a collector, which is worth more? As an investor that would be worth more? I read your article on your favorite and least favorite ways to collect coins. You said that buying from "Franklin Mint" and "Bradford Exchange" are not the best deal. This includes the Mint US?
Reply:The Franklin Mint and Bradford Exchange are privately owned companies that put out "collection" of various kinds, including coins, but because their currencies are not from a government official institution, collectors of coins are not generally interested in them. Although some products released by these companies (and their competitors) have some modest value of secondary market, their currencies have historically done quite badly. With the exception of a couple of first set of Franklin Mint, coin dealers just throw these coins on a scale to weigh and pay approximately 92% to 95% of the spot price if it is also made of silver or gold, which many of them are not. The United States Mint, on the other hand, is an official government Mint and its products are doing quite well on the secondary market, especially over time.
Regarding offers of metal (e.g. 24kt Gold Eagles, Silver Eagles, etc.), proof and marked Mint versions of these coins sold on u.s. Mint Web site have the same contents of purity metal coins regulars, but they are affected to a higher level of quality and in limited numbers. Both types of coins have the potential to be good investments, but which one you buy will depend on your collection or investing objectives. If your main purpose is to buy gold bullion as an investment, my recommendation is that you don't buy these coins at all, but to buy gold bars gold bullion generic and bars that are sold for a couple of percentage points over the spot price. L'Aquila d'Oro of United States, as well as Canadian Maple Leaf, Chinese Panda and a few other coins issued by the Government mints all have ups premium on them. The South African Krugerrands has usually lower premiums, but lower than all bars and ingots are issued by European banks and some recognized private refiners. Some examples of the creators of Lingotto European Bank and refineries are renowned are JM PAMP Suisse and, and in the United States exists Engelhard and SilverTowne. If you are buying gold just to store the ingots, then buy the types carrying smaller commissions on them, which are the bars and ingots made those refiners.
However, if your interest is more collection of beautiful coins that also happen to enjoy the solidity of ingots, you would go with the American Eagles, Maple Leafs, Pandas, etc., or better yet, buy classic U.S. gold, as the Eagles Double Saint-Gaudens, which trade on the value of the metal more about 8%-10% for most dates and degrees. These coins have the advantage of potential double: the gold in their metal value will always be, no matter what, but the fact that the metal is stored in an American currency bettors years also adds the possibility that it will increase the value for its rarity. We have no idea how many were merged during melting spree at the beginning of 2008 when gold topped 1,000 dollars an ounce, but these will only get coins rare over time, and premiums on them now are minimal, considering their rarity and potential.
The first question must be answered in order to determine what to buy, or not you are a collector or an investor. If you love drawings and images of coins and how it feels to hold their and the satisfaction of completing the set, and collect coins for their beauty and pleasure of hobbies. You can still buy in order to make a profit in a day; most collectors have this lens in the back of their mind. If, however, your primary goal is to store up to metal against potential doomsday, or just hope that gold will go up in value and you'll be able to sell for a profit, one day, then buy ingots and try to avoid paying commissions premium carrying collectible bullion coins. As noted earlier, you can straddle sort of fence on this with the purchase of gold coins, as gold Saint-Gaudens U.S. classic Eagles.
Whatever you decide to buy, make absolutely sure that you take delivery of your purchases immediately! Never leave companies store ingots into their archives for you! If these companies fail or become victims of foul play, you're going to be stuck holds a note paper that not worth anything. Take delivery of your gold and store it somewhere under your control, preferably in a bank safe deposit box.
