Investing Your Money Right | Investing

By Evgeny Sokolov2
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Word Count: 695

Golden Investment Opportunities

For most of us, the word "gold" brings to mind jewelry that is made from gold. Jewelry is only one of the forms of gold, as there are other ways in which we can buy gold. You can buy gold in the form of gold bars, stock certificates, and there are even several different types of gold coins.

When it comes to gold coins there are basically two types of coins. The first type is bullion gold coins that is valued only by the price of gold on any given day, which can actually change several times per day. The second type of gold coins is more rare. With investment-grade gold coins, there are only so many minted in any given year, and they have never been circulated. Instead, they have been saved for investment purposes.

Among all the types of gold investments, gold in the form of uncirculated rare coins are the easiest form of investment. For example, if only 5000 of these coins were minted in, say, 1928, and only 500 are left known to exist, as that number decreases in lost coins, the value continues to rise on the rarity side of the investment. The other side of the value of these coins is by the weight, but the rarity is the most important. Unlike bullion gold coins, the rarity value increases substantially as the price of gold rises, in addition to the weight, whereas gold bullion coins only increase in value as the price of gold rises. For example, a $20 gold piece that is investment grade and uncirculated will far out-perform a bullion gold coin up to six or eight or more times growth of the same weight because of the rarity value in addition to the weight in gold.

These coins can be easily acquired all at once when liquidating other investments, or you can start out small and add to your investment portfolio over time. So we can gradually accumulate our wealth in the form of US investment-grade gold and silver coins as we accumulate extra money, and put that money to work. They can also be easily stored, they can be liquidated at any time if you need some quick cash, and the best part of it is they are a private investment with no tax consequences (as opposed to bullion).

Bullion coins are reportable, however. Therefore, you would have to pay taxes on money, which doesn't make any sense at all. Rare, numismatic, or investment-grade gold and silver coins are not reportable. They are held as a tangible, private asset, which is why gold ownership is the best investment you can make in your future today. In fact, you can roll over your IRA or 401k individual retirement plan into a self-directed plan backed by gold, i.e. a gold IRA, and it's very easy to do.

We must warn you that when you buy gold from just any dealer, that dealer may not disclose to you their mark up price otherwise known as investment spread. They can mark the coins up anywhere from 28% to 45%. So you must find a discount gold dealer or discount coin dealer who is an expert in the marketplace. Call a few different precious metals dealers and ask for their recommendations and quotes on prices for the coins they suggest. Superior Discount Coins (dot com) has the lowest prices in the industry, nation wide, and an expert with over 25 years of experience to help guide you.

You can find substantial savings on investment spreads (or profit margins) from the large dealerships if you simply search for discount gold coins or discount coin dealers or discount gold dealers. Don't just talk to one out of forty brokers for the larger precious metals firms that has little or no experience and only wants to sell you a coin. Do your research and find an expert you feel comfortable with, check around to ensure they have the lowest prices, and then begin your endeavor to invest in gold and silver coins for privacy, security and maximum growth potential.

About the Author

Jim Burg is author of this article on gold IRA | 401k. Find more information about gold IRA | 401k here.

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