As the world economy continues to sputter and stagnate, more and more investors are putting their money in gold and silver. One unique form of gold and silver investing is in gold and silver coins. Gold and silver coin prices have increased in recent years and should continue their upward momentum so long as the world economy remains in turmoil.
In 2008, the world’s financial markets began to unravel as decades of bad debt began catching up with individuals, institutions and countries. The aftershocks of this financial implosion affected nearly all areas of the economy, and investments rapidly lost value.
Historically, when financial times are bad gold and silver perform well as a safe-harbor investment where folks can park their money and receive a good return as the price of gold and silver goes higher.
Investors have a lot of options when investing in gold and silver, including bars, nuggets, accounts and coins. Coins are a popular form of gold investment because they not only are solid investments, but also appeal to collectors because of the unique artwork used in striking gold and silver coins.
Right now, demand for gold and silver is driving prices for gold and silver coins up as investors and collectors are clamoring for the coins. According to the London Bullion Market Association, an unprecedented number of investors are buying gold and silver coins.
The price of gold and silver has jumped in recent years, and while it has leveled off recently, the stage is set for another spike as worries of a double-dip recession and other economic problems increase. By getting into the gold and silver coin market to, you can invest in a safe commodity and have fun collecting these valuable coins.
Gold and silver coins have a variety of characteristics that make them attractive to investors. Unlike stocks and bonds, gold and silver coins are a tangible investment that you can hold and store yourself. The physical nature of gold and silver coins also makes it easier to keep transactions with these commodities private, as they leave little or no paper trail. Gold and silver coins are easy to liquidate, as most cities have a metal or pawn dealer who can quickly turn gold and silver into cash.
There are a variety of ways to purchase gold and silver coins, including various private and public mints, online stores and online auction sites. When buying from an online dealer, do your homework to avoid being swindled. Be sure to check out the dealer’s credentials and reputation among other gold and silver coin collectors.
Factors influencing price
When buying newly minted gold and silver coins, two factors influence the price of the coins. These factors are the price of gold and silver at the time of purchase and a small premium attached to the price of the coins.
When buying older coins, their rarity and collector’s value may also influence their price. Often holders of old gold and silver coins don’t realize the true value of these coins and sell them for less than they’re actually worth.