Gold coin secrets

If you’re an gold coin investor, like any other investor you’re looking for any information you can find that will give you an edge and help you build your wealth.

Gold coin investing may seem pretty straightforward, but there are a number of factors that can influence the value of your coins, and staying abreast of them will help you safeguard your investment.

For instance, there’s a little known policy of the U.S. mint that has had a recent impact on the price of U.S. numismatic gold coins. Numismatic gold coins are essentially collectors’ coins.

Had the U.S. Mint followed its written pricing policy, in early July, the mint should have cut prices for available numismatic coins. The policy regards the average of London Fix prices. For about a year, price changes in numismatic coins have dovetailed with the calculated average of fix prices. If this had held up recently, the price should have resulted in a cut for Firs Spouse Gold coins.

It didn’t.

Apparently, there’s a less well-known policy that can override the written policy most traders are aware of.

The U.S. Mint responded to questions by interested parties regarding the pricing by saying that an internal policy superseded the published policy and that recent circumstances caused the mint to follow this policy. According to the mint, on the week that ended on May 26, the weekly average fix fell under the effective range on that date, because a Wednesday evening fix was within that range, however, the mint did not drop prices.

Being aware of internal policies such as this one can make a big difference in the investment plans of gold and silver traders.

This is just one of the many “secrets” gold coin traders need to be aware of. Other factors gold coin traders need to be aware of include.

- Premiums. When buying gold coins, you’re likely to pay a premium over the underlying cost of the gold. When buying coins straight from a mint, the premium shouldn’t be too high. If it is, don’t buy the coins. When dealing with older or rare coins, expect to pay a higher premium related to the age and scarcity of the coins.

- Coin values. Just because a coin is old, it doesn’t mean it’s worth a lot of money. The condition of the coin will also play a big role in how it’s valued. When buying gold coins, try to buy the best quality coins available and be sure to store them securely.

There’s a lot of other secrets to successfully trading gold coins. As you wade deeper into gold coin investment, you’ll likely pick them up from other investors and your own experience. A good way to keep up with the recent trends and learn the latest news is to follow gold regularly on the various Internet blogs about gold trading. There’s a lot of experience on the blogs and boards, but be sure to verify any information you get there before making a move based on it, because for every great collector online, there are also about 10 hacks.