As demand for precious metals continues to rise, there has been increasing interest in buying gold coins. Before you jump onto the bandwagon and embark on buying the gold, you need to be sure that you know what you are buying. The fact is that most people would not really distinguish a gold coin from one that is gold plated. It is advisable to get expert help to avoid being conned. You should buy the coins only after you are sure of their value. There are several factors to consider before buying gold coins.
1. Reputable dealer
One of the most important things to do before buying coins is to look for a reputable dealer. This dealer adheres to the strict code of ethics. Honest dealers will not sell sub-standard products. Buying from a reputable mint company will help to ensure that you get coins of good value that are recognized internationally.
2. Price
Before you buy gold, you need to establish the best price. It is important to note that the gold bullion coins will usually trade at a higher premium than the actual spot price because of the minting fees. The size of the coin and the quality you want to purchase will affect the final price. The Canadian Maple Leafs, American Eagles and the South African Krugerrands are the best coins to invest in. To get the best deal you should contact a number of reputable dealers to compare prices.
3. Collector coins or bullion coins
Before you invest in gold coins, you should be clear about your goals. You need to establish whether you want to buy collector coins, which are sought after for their numismatic value, or bullion coins whose value fluctuates depending on the current price of gold. Collectors look for rare coins whose value increases with time. Demand and supply forces often affect this price. Collector coins are ideal for those who are looking for a long-term investment.
4. Mode of delivery
When buying gold coins, one of the things you need to establish is the mode of delivery. These are precious commodities and ideally, you should get your purchase within two weeks. Most reputable companies offer free delivery within certain locations, but will charge for overseas deliveries. You can also opt to collect your purchase from specified locations. In some cases, delivery may be delayed due to minting problems but this should be communicated to you during the purchase.