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Sunday, August 03, 2008

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Numismatists Article Of The Day

American Eagle Bullion Gold Coins - How to Buy and Invest

By Matthew Chang

American Eagle Bullion Gold Coins are an excellent way to begin and diversify any investment portfolio. Before you buy any kind of investment, however, it is important to know about what you are buying.

First, the bullion coins are 22 karat gold coins, made by the U.S. Mint, and is fully backed by the US Government. Originally introduced in 1986, the coins have become and excellent way to get into the gold market.

The reason that gold currently is a good choice for investing is the rapid increase in value, thus partly due to the decline in value of the US Dollar, and the overall scarcity of the metal.

All American Eagle gold coins, including the bullion, are made with gold that is from the United States only.

In general, all Gold Bullion coins can be quickly sold for cash at coin and precious metal dealers throughout the world. Technically, these coins are legal tender in the United States; the 1 oz. gold bullion coin, for example, has a face value of $50 yet, given the fact the coin is worth almost twenty times that amount based upon the market price of its gold composition, this is basically a symbolic gesture.

For the new investor, there may be some confusion about the difference between the Gold Proof coin, and the Gold Bullion coin.

* Gold Proof Coins: According to the U.S. Mint, are collector edition coins. They are minted through a special process that 'begins by manually feeding burnished coin blanks into presses fitted with special dies. Each coin is struck multiple times so the softly frosted, yet detailed images seem to float above a mirror-like field'. All Gold proof coins come packaged with a certificate of authenticity in a protective case and mounted in a satin-lined blue velvet case. They are originally available for sale directly from the Mint.

* Gold Bullion: These coins are not purchased for their rarity or age. They are purely meant as a way to acquire a position in gold as a precious metal. The gold market dictates the price they will sell for at the time of purchase. Unlike the proof coins, the American Eagle Gold Bullion coins must be acquired through an authorized dealer.

When investing in gold bullion coins, fitting the Gold Bullion Coins into a portfolio is typically done as a hedge against inflation. During the 1970's, a time of historic inflationary pressure, for example, an investor would have been much better off had he owned a portfolio consisting largely of gold. However, throughout the 1990's bull market, however, gold bullion was an under performer and would have resulted in sub-par returns on a compounded basis for the decade.

Currently with the US economy in recession, and inflationary pressures on the horizon, the timing for gold investing appears to be positive.

Finally, American Eagle Bullion Gold Coins can legally be purchased through an IRA account. It is advised to check with your financial advisor for details.

About The Author

Find Great American Eagle Bullion Gold Coins, when you buy at auction. Visit the http://eaglegoldcoinshop.com for up to the minute deals on American Eagle Bullion Gold coins, and Proof coins.

Gold & Silver Coin Bullion News





U.S. Silver Certificates are still valid forms of legal tender, however some may carry numismatic value as well. Early "Large Size" notes are particularly sought after, and depending on condition, can command high numismatic values. Later "Small Size" issues in crisp, uncirculated condition may also hold a premium over face value. However, notes that have been in circulation and are folded and/or torn will probably carry only legal-tender value.
Buy Canadian Maple Leaf silver dollars for a great investment.

Decide what type of paper money collection you want to have. Some people only collect banknotes which contain a certain image (fish, tractors, etc.). Others strive to obtain collections of currency from countries which no longer exist (Biafra, Rhodesia, etc.) Some focus on one single country while others try to collect from every country. It's all up to you and your interests. The variety of banknotes out there is so vast that there is bound to be some category you are interested in.
Buy American Silver Eagle silver dollars for a great investment.



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