While the world seem to be in the middle of a Gold Rush Silver has been steadily growing in value .
Although Silver has not grown at the same rate as gold it will probably continue growing in value.
One investor tried to corner the market in silver but was eventually thwarted.
How to Buy Gold Bullion Coins
Bullion Coins – what are those?
A Bullion Coin is simply a coin that is made of a precious metal - Gold, Silver, Palladium and Platinum are the standard precious metals used to mint bullion coins.
There are two kinds of bullion coins – modern coins made for investors and
Precious metal coins used in previous times as a means of easily transporting Gold or silver from a colony to the owners home city (these you will instantly recognise as pirate treasure !.)
Spain was the main country which explored Central and South America for the mineral resources of Gold and Silver. These were collected and melted down into coins for transport back to Spain. The only problem was the pirates and privateers who robbed them on the way back.
(One of my own ancestors was a privateer who razed the City of Panama and liberated their gold and silver resources)
Bullion coins from the 16th and 17th century carry a hefty premium when they are accompanied by a certificate of authenticity.
Modern day treasure hunters look for pirate treasure either on land or at sea and sell what they find. These are mostly from shipwrecks found by much research in Admiralty records worldwide. Sailing was not the pleasant business of nowadays though and shipwrecks were common (there are over 30 in the river below my own garden ..) Warfare also contributed its fair share of bullion and many armies throughout history have buried and lost the money they were going to pay their men with.
The most commonly offered bullion coins are those from the Atocha shipwreck and these are sold by the people who discovered the Spanish ship complete with its cargo of coins and other treasures. Some of these are sold as jewellery or other collectables. This was a huge find and has reaped vast rewards for its finders.
Other sources of silver coins and ingots are the California silver mines where miners are believed to have hidden their own caches of treasure. Ingots claiming to be from this region sometime turn up on auction sites.
Going back further in time, the past wars in the former Yugoslavia have also unearthed bullion hidden during Roman times and these are very collectable in good condition.
So we have several factor to take into consideration when looking at older bullion coins – condition of course is paramount but we should not underestimate the attraction of historical links – as collectors love to own coins from famous battles, pirates or ones with another romantic history.
Modern Day Bullion
Bullion Coins today are very popular as a hedge against inflation and because of the current distrust of the banking system.
Banks may have proved themselves untrustworthy as many people can testify.
Traditionally countries like France and Belgium have found themselves at the centre of a number of wars and gold bullion has been the solution for residents
Modern Bullion coins are minted by many countries and can be purchased easily on websites like eBay. This is the easiest way to buy from a wide range of gold and silver bullion coins and ingots.
The next easiest way to buy is from a coin dealer where you will be able to inspect the coins or ingots.
Surprisingly Amazon.com offers both ingots and bullion coins .
So what Bullion coins are actually available to the independent purchaser ?
Gold Coins
South African KRUGERRANDS are an international favourite offering 1 troy ounce of gold ( most gold bullion coins are in multiples or fractions of a troy ounce.
The next Most Popular coin is the American Buffalo .This is a one Ounce Gold coin with a face value of $50 (but of course it is worth much more than that !)
The American Eagle Series of Gold coins are very worthwhile looking at as they are available in various denominations.
The St Gauden is a very lovely coin and is popular with collectors. However there are forgeries of this coin around.
Other popular Gold Bullion Coins include :
Australia – the 1 Ounce Gold Nugget
Austrian Philharmoniker Series of Gold Coins
The Canadian Maple Leaf Series
France – Rooster Series
Israel Gold Coins are popular too.
The Mexican Libertad
The British Sovereign
Swiss 20 Franc Helvetia
China Zodiac Gold Coins
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US $42.17
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You will ALWAYS pay more for Bullion Gold Coins than the official gold price.
The margin depends on the costs of manufacture, storage and distribution.
Silver Bullion Coins are very much worth considering.
There are also other options for the individual investor.
These include:
Swiss 10 ounce Gold Bars
There are rounds ,mixed lots of bullion, scrap gold bullion
Platinum Bullion coins including some unusual platinum bars and platinum coins recovered from the World Trade Center vaults of Johnson Matthew (the platinum Year of the Dragon coins)
Another option for collectors is Proof Coins (again a little more expensive)
These are superb quality coins double-struck with a heightened value .
You can find these from China (Gold Pandas) American Eagles etc.
Many countries have also produced commemorative coins in gold or silver but as some of these are limited editions these may be less attractive to bullion investors.
Hints on Buying Gold Bullion :
1: Never use an instant money transfer company to pay for gold coins – these are favourites for fraudsters.
2: check with the vendor on any internet site (like eBay) to avoid buying from a stolen account
3: Decide what value and type of coins/bars you are looking for.
4: Never buy from strangers in a café or pub/bar – this is a sure way to get robbed.
5: If you are buying in person then take a friend with you as a witness/security
6: Check if delivery costs are included (registered post please !)
7: check the bona fides of any company you buy from on the internet.
8: If possible check up on the background of any seller before you buy.
This includes ebay feedback - especially on delivery.
Bullion makes a superb gift for a loved one – especially when it can be used as jewellery (several of the swiss bullion pieces are suitable as pendants etc.
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Or consider a Gold Watch – several are actually made from $20 pieces.
I hope this helps you if you want to know How to Buy Gold Bullion Coins
This article is (C) Copyright 2009 Keith Jones
