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Do coins offer security over bars?
Jmsb
Posts: 4
I'm just beginning to acquire gold and silver for the first time. Having seen several articles discussing fraudulent gold bars, I'm wondering if coins (such as Gold American Eagles) offer slightly more security. Does anyone have any input regarding whether that may be true or not? And does sealed/unsealed or assay/no assay matter?
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-Paul
<< <i>i do not subscribe to coins as an investment nor should you. >>
There is a big difference between collector coins and bullion.
Edit to add there is a separate Precious Metals forum as well with a lot of info.
to be exercised because there are exceptions and there are counterfeits. While I agree
that coins are not a wise choice for investment I believe it is important to own some gold
and that silver is very much undervalued relative to gold making it a sound investment.
Lots of money can be made in coins but it can as easily be lost and it's only the impossib-
ility of predicting future demand that makes coins a poor choice for investment.
You might want to take this question to the Precious Metals Forum which can be found on
the "navigation:" menu above.
Counterfeiting a US government legal-tender coin is probably higher on the list of offenses than counterfeiting a privately-issued bar
You will want to turn on your PM function so others can share messages with you beyond thread posts.
Also, as mentioned, we do have a PM forum. Read, read and read some more. Lots of good info' ...
For Gold, I would suggest AGE's (American Gold Eagles), and my preference is for fractional sizes. Gold Canadian Maples are also popular. If you buy them graded and are looking at as bullion, stick with 68/69 grades so you don't pay the "70" premium. They will be easier to sell when graded by PCGS or NGC. The premium rises as the size goes down (for example a 1/10th might be 12% over spot, while a 1oz might only be 3% over). In both cases (Eagles and Maples) counterfeits are uncommon, although learn what to look for, or pay up for the TPG assurance. I would stay away from Gold bars unless you are absolutely comfortable with the market for them, and know exactly what you are looking at.
For Silver, I would suggest ASE's (American Silver Eagles), Maples, known bars (Englehard, Johnson and Matthey, Sunshine, Silvertowne ... a few others), and 90% (US dimes, quarters and halves, 1964 and before). There are fakes of all, but some basic understanding here will go a long way. Eagles and Maples carry a noticable premium over spot (8-12%), bars (except rare bars) not so much (maybe 2-6%), and 90% typically trades at just over (a couple percent), and sometimes at spot or even a slight discount.
“We are only their care-takers,” he posed, “if we take good care of them, then centuries from now they may still be here … ”
Todd - BHNC #242
Government is the great fiction through which everybody endeavors to live at the expense of everybody else. - Bastiat
Old dirty and worn 90% US silver coins - are about as secure as you can get. And these fractional silver coins are far more utilitarian than 1 oz or 1/10 oz gold coins.
AGE's and Maples seem to be the most popular. I don't have any problems with 90% pure pre-1933 US gold either. If buy your gold from reputable dealers you should
have no problems. I don't like gold bars of any type. But I'm ok with silver bars up to 100 oz. from reputable sellers. If you buy them from a reputable seller you should have
no issues selling them back. Ensure you get the serial # of a 100 oz bar recorded on your dealer invoice.
<< <i>I would say coins offer more security.
Counterfeiting a US government legal-tender coin is probably higher on the list of offenses than counterfeiting a privately-issued bar
<< <i>
<< <i>I would say coins offer more security.
Counterfeiting a US government legal-tender coin is probably higher on the list of offenses than counterfeiting a privately-issued bar
also more difficult and not as profitable for the smaller weight coins
Government is the great fiction through which everybody endeavors to live at the expense of everybody else. - Bastiat
<< <i>i do not subscribe to coins as an investment nor should you. it is purely a hobby of enjoyment, i collect toned coins, some patterns, and do not do it for financial return. >>
I believe he is referring to bullion coins, not collectible coins. I don't regard collectible coins as an invesment either but regard my collection as an enjoyable store of value. Bullion is a recognized investment even in the financial management industry which usually recommends a 5% portfolio allocation. I'd be more comfortable with coins rather than bars with gold eagles and 90% junk at the top of my list.
My icon IS my coin. It is a gem 1949 FBL Franklin.
As long as the coins are out of reach, yes.
The bars must be several feet away from the coins to keep them secure.
Most of us use a safe or a SDB rather than a jail cell for our coins.
An authorized PCGS dealer, and a contributor to the Red Book.
If I was ready to invest in bullion, I'd go with coins, probably $20 gold pieces.
i agree, any size AGEs and common date gold in PCGS or NGC aint
gonna hurt ya. its the hedge game ive been in for awhile, and there fun
to look at.......
sure they are real, unless you are very familiar with US gold coins
becasue all have be faked in large numbers!
I wouldn't worry about silver too much. You could get US or many
other countys like the Mexican Libertads (one of my favorites). These
are very easy to buy and sell and easy to remember prices.
i would stay away from bullion in any form expect coins that are easy
to recogize and sell !
These best way to accumale is over time and use the "dollar cost aveaging" idea.
I wouldn't go all-in-long all at once!
Good luck and be patient, because historic waiting periods have been on the
order of 20-30 years unless you get real lucky with timing.
Stay away from bars - too many bogus tungsten bars out there.
They call me "Pack the Ripper"