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Gold Coins
The premium over the spot price of gold is somewhere between 3-6% for a one ounce coin, although higher for smaller coins. For a 1/20 ounce coin the premium could be as high as 40%. Buying gold coins of less than one ounce is probably not a good investment.
Markup |
Ounces |
5% |
1 |
8% |
1/2 |
12% |
1/4 |
20% |
1/10 |
40% |
1/20 |
Silver Coins
For silver coins the markup is about 9-11% for a one ounce coin.
You can find coins for sale here, or people wanting to buy coins here.
Testing Gold and Silver Coins
When buying coins you might want to use the Fisch Fake Coin Identification
Gauge. This is a simple device that checks the weight and size of a gold
coin. By checking both these dimensions all common metal counterfeits will
be detected. This is because gold has a greater density than the common
metals such as lead, copper, brass, steel. The only metals with a density
greater than gold are the platinum group metals and tungsten. The price
of platinum rules it out while tungsten is a very hard brittle which would
be very difficult to work into a passable fake. There are Fisch for all
the major gold bullion coins.
The Fisch System can also be used to test Silver Dollars
Where to store your coins
1. Spread your holdings around. Not only is it wise to avoid keeping all your coins in one place, diversifying your storage arrangements allows you to buy more. Hide some at home in several locations (no cookie jars, though), and obviously tell only one trusted person. Store some in a bank safe deposit box and use more than one bank as your holdings grow.
2. Private storage. Store your gold with a private vaulting company. The advantage is that it’s outside the banking system; the disadvantage is that it’s usually expensive, though it can be cost effective for large holdings. Keep in mind that using a vaulting facility beyond a reasonable driving distance will mean added shipping/insurance costs and restrict quick access.
3. Use pool accounts and unallocated storage. Pool accounts refer to a precious metal account deposit in which the client does not have title to specific (allocated) coins. The client instead owns a defined but unallocated interest in a pool of coins. However, the client is entitled to receive physical bullion in the form of any type of coin upon payment of quoted fabrication charges.
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