The most popular gold coins that are normally purchased for the sake of investment are the American Buffalo, the American eagle and St. Gaud en’s. It is crucial that when an individual decides to buy gold for investment a few things need to be considered.

• Storing Gold in a safe place

  • You can store gold in bank safety deposit boxes or in your home.

• Where to buy the gold.

  • Getting in touch and doing business pertaining to gold is an expensive venture; as such having reputable dealers at hand is an important factor.

• How much gold should be purchased at a single buy

  • For beginners buying small quantities is the best option. Avoiding huge premiums is a vital factor when you purchase gold coins or bullion, Buying gold as close to the spot price as possible is essential to see profit in the long run if at all there is a premium that is unavoidable ensure that it does not exceed 10% from the value of gold according to spot gold prices.,

• When to sell

  • Gold as it is is a long term investment. Trying to make quick money from gold is not a feasible idea. It should be an investment for bigger focused projects that relates to retirement, or buying a house.

The minting agents sell the gold coins or gold bullion at a four to five percent mark up against the spot gold price and the retailers in turn add another one to three percent margin to them prior to selling it. To know the premium of the gold you intend to buy minus the spot gold (SG) price from the buying price (BP) then divide the answer (AC) with the spot gold price and times it with a hundred (to obtain the percentage value) to get the mark up. The example is as below

Step1.

BP – SG = AC

Step2.

AC/SG x 100 = premium mark up %

This would give a percentage value of how high the price of the gold the investor purchases needs to rise from the spot gold price during purchase. It is not only crucial to purchase gold coins or gold bullions as close to the spot gold price as possible. Numismatic values sometimes can be over rated and as such if the purchase is intended for investment purposes then numismatic value should be ignored altogether