Gold and Silver Investment Choices

Gold and other precious metals have been movingabout $25 plus the spot price for 1 ounce coin,
rapidly upward in the market, and investorsand if you sell it you will receive a few dollars less
wonder what investment vehicles are the bestthan the spot price. The cost for a buy and sell
choices to capture that upward price appreciationcombined is about $30. Foreign bullion coins, such
in the precious metals market. Many wish to buyas Canadian Maples or Krugerrands are slightly less
and hold the precious metals themselves, butliquid but may also have lower buy and sell costs.
there are a number of alternatives. Each of theseThere are also one ounce silver bullion coins, which
different options has its own strengths andare available with a similar significant cost to buy
weaknesses. This discussion gives some basicand sell.
information on the most common possibilities.US 90% coin silver
Depending on what your goals are, you mayUntil 1964, all US coinage other than nickels and
choose to use one or more of the availablecents were made of 90% silver. These coins also
options described below. I'm not an investmenthave a bullion value based on their silver content.
counselor, nor am I offering any investmentYou can normally purchase from just a few to a
advice, but here is a brief explanation andbig bucket full, and they are sold both by weight
introduction to each of the best knownand by face dollar amount - by weight is probably
opportunities for precious metals investment:the better deal as some old coins are worn.
US and international gold bullion coinsThese coins are available at most coin shops. Like
The US and many other countries have madeother bullion coins, there is a significant cost to
and are continuing to make gold bullion coins forbuy and sell.
sale. These are not coins which are rare and haveUS Gold numismatic collector coins
numismatic value, but are coins made forMany investors are interested in gold collector
investors interested in their bullion value. Thecoins. These are coins with a large numismatic
American gold eagle coin is available and(coin collector) value premium in addition to their
denominations of 1/10 ounce, one quarter ounce,bullion value. These coins will fluctuate somewhat
one half ounce and 1 ounce. The great advantagewith precious metal prices, but many times they
of bullion coins is that they are easily available,also contain a significant price premium due to
liquid and portable. Most coin shops buy and selltheir desirability as collector coins. Sometimes the
them. If you plan to buy small amounts of gold,collector price appreciates significantly, but for
perhaps half an ounce a month for investmentthose who really wish to invest in the appreciation
purposes, this is the kind of thing you may beof precious metal prices, these coins are probably
interested in. The disadvantage is that they havenot the best vehicle.
a significant cost of getting in and out. It will cost