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BEST WAY TO OWN GOLD

Best Investment Quality Bullion Gold Coins

ONE OUNCE UNITED STATES GOLD EAGLE
Legal tender $50 face value
Dated 1986 - 2004
Gross weight 33.93 grams of .917 fine gold
Net gold weight one troy oz (31.103 grams)
Grade: Brilliant Uncirculated

Minted by the United States government, the Eagle is the present-day king of gold bullion coins. Widely recognized and traded globally, these large, beautiful "Liberties" or "Eagles" are the world's most popular gold bullion coins. The US Mint charges major distributors the spot gold price plus 3 percent plus shipping. One-ounce Gold Eagles sell for the lowest premium of all United States monetized gold coins. Permitted in IRAs.

Trades at 5 to 6% over the spot price of gold, depending on quantity.

ONE OUNCE CANADIAN GOLD MAPLE LEAF
Legal tender $50 Canadian face value
Dated 1983 - 2004
Purity .9999 fine gold
Gross weight 31.103 grams
Grade: Brilliant Uncirculated

Known as "Maple Leafs" from the design on one side, these 24-karat pure gold products of the Royal Canadian Mint are among the best selling gold coins in the world. Canada is generally highly regarded for quality mint issue products, and the Gold Maple Leaf is no exception. Well struck and beautiful, with a $50 face value, these coins are actively traded with a low buy/sell spread.

Trades at 5 to 6% over the spot price of gold, depending on quantity.

WORLDWIDE GOLD BULLION COINS
Over 10 other countries have minted gold bullion coins for investors. The coins include the Australia Kangaroo, Austria 100 Corona & Philharmonic, Hungary 100 Korona, South African Krugerrand, Chinese Panda, Mexican 50 Peso, Isle of Man Angel, Great Britain Sovereign, French and Swiss Gold Francs.

Many of these gold coins are beautiful, and you may enjoy owning them for that reason. Just as with US and Canadian gold bullion coins, their value is based on their gold content. The bulk of trading worldwide, however, is in the Canadian Maple Leaf and US Gold Eagle. Therefore the spread (difference between the wholesale bid/ask prices) on those coins is narrower than the spread on the less widely traded coins from the other countries. That makes the Eagle and the Maple Leaf the preferred bullion coins for investment purposes.

Best Investment Quality Rare Gold Coins

CERTIFIED $20 GOLD SAINT-GAUDENS

Legal tender $20 face value
Dated 1908 - 1928
Gross weight 33.43 grams of .900 fine gold
Net gold weight .9675 troy oz
Diameter 34mm
Grade: Mint State 62 or 63

$20 Gold Saint-Gaudens ("Double Eagles") are among the most beautiful coins ever designed. Referred to by the name of their designer, renowned sculptor Augustus Saint-Gaudens, they are true works of art. Extremely popular with collectors and investors, "Saints," the last regular-issue (for circulation) gold coin struck by the US Government, are always in demand. But their supply dwindles because they have not been minted since 1928 and will never be minted again. When you own these beauties you win three ways: when gold increases and when the rarity premium rises, and because rare coins are not subject to the same government reporting requirements as are many bullion gold coins. Due to their numismatic premium, the price of "Saints" does not rise or fall penny for penny with the price of gold.

I recommend two certified grades: Mint State (MS) 62, which is average brilliant uncirculated, or MS63, which is choice brilliant uncirculated. Certification should be by a creditable coin grading company. Both PCGS (Professional Coin Grading Service) and NGC (Numismatic Guaranty Corporation) have excellent reputations for accurate grading and use the strictest standards.

Trades at 40 to 60% over the spot gold price depending on grade and quantity.

CERTIFIED $20 GOLD LIBERTIES

Legal tender $20 face value
Dated 1877 - 1907
Gross weight 33.43 grams of .900 fine gold
Net gold weight .9675 troy oz
Diameter 34 mm
Grade: Mint State 62

$20 Gold Liberties were designed by the US Mint's Chief Engraver, James Longacare, who is said to have used his daughter Sara as the model for Liberty. Liberties circulated for almost 100 years. Every uncirculated specimen is worth a premium to the melt value and is considered a rare coin or numismatic gold piece, as opposed to a bullion coin such as the modern US Eagle. Many investors like the fact that $20 Liberties are dated earlier then $20 Saints. Although scarce, $20 Gold Liberties are affordable. I believe they are sure to outpace inflation and outperform most gold bullion coins.

I recommend the MS62 (Mint State 62) grade. Certification should be by a creditable coin grading company. Both PCGS (Professional Coin Grading Service) and NGC (Numismatic Guaranty Corporation) have excellent reputations for accurate grading and use the strictest standards.

Trades at 35 to 55% over the spot gold price depending on quantity and availability.

CERTIFIED 4-PIECE US GOLD
SAINT-GAUDENS/INDIAN SET

Legal tender $2 ∏, $5, $10 & $20 face value
Dated 1907-1932
Gross weight 1.79 ounces of .900 fine gold
Grade: Mint State 63 or 64

This set of 4 certified gold coins is the foundation investment for any serious gold coin investor/collector. The coins are beautiful, and the set is one of the most popular investments for gold owners. In a bull market their prices increase at a greater pace than the prices of bullion coins due to scarcity of the individual coins and of assembled sets. Many gold coin investors make these sets part of their long-term or retirement investment planning.

I recommend MS63 & MS64 grades. Certification should be by a creditable coin grading company. Both PCGS (Professional Coin Grading Service) and NGC (Numismatic Guaranty Corporation) have excellent reputations for accurate grading and use the strictest standards.

Actively traded with premiums based on demand and availability.

CERTIFIED US GOLD RARITIES
Legal tender $1, $2 ∏, $3, $5, $10, $20, $50 face value
Dated 1795-1932
Grade: Mint State & Proof 63 to 68

The best gold investment for long-term investors looking for capital appreciation is scarce US gold certified rare coins. Many of these gold rarities are the finest known or one of only 50 known to exist in a high grade. Both NGC and PCGS (well respected rare-coin grading and authentication services) publish census reports stating how many rarities, by coin and grade, they have certified in the past 18 years. They also allow connoisseur collectors/investors to pedigree and register their collections.

True US gold coin rarities are difficult to locate and are usually available only at high profile numismatic auction houses. Prices can range from $3,000 to $1,000,000 per coin, with many investment-quality rarities available in the $10,000 to $50,000 range. Owning US gold coin rarities is comparable to making an investment in fine art, antiques, or classic cars, but the more actively traded numismatic marketplace gives coin rarities greater liquidity.

WHICH GOLD COINS ARE RIGHT FOR YOU?
Ask yourself these questions, then consult with a knowledgeable professional experienced in rare coins and bullion coins as investments.

Why are you investing in gold?

  • For short-term profit
  • To balance your investment portfolio
  • As part of your retirement program
  • For long-term protection against world political and economic instability

What is your investment strategy?

  • One initial investment
  • A monthly, quarterly, or yearly investment

What is your risk level?

  • Bullion gold coins trade actively with tight spreads and go up $1 for every $1 increase in the spot gold price
  • Investment grade rare US gold coins described above carry greater risk and much higher rewards

For current pricing and availability information, or recommendations for building a gold investment portfolio, contact your author, Barry Stuppler, at barry@goldnewstoday.com or 888-454-0444.

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