Muna wa Wanjiru asked:


I’m fairly fascinated with US gold coins and their history, unfortunately for me it’s a fairly expensive hobby as well as being a fascinating one. I do persevere though as much as I can and try to get my hands on as many gold coins as my budget allows me to! Gold has been used in some form or other throughout the history of the world in many ways and in many forms. From simple gold nuggets to US gold coins to gold bars and even gold biscuits, gold has literally made the world go around.

At least that was the case for mass circulation up until very recently in the twentieth century. At which point I’m afraid that gold was taken out of the loop as a means of daily monies and replaced with other things such as copper, nickel and paper. And whereas with gold it was the intrinsic value that was taken into account when any trading was done, with paper money, it’s the promise of the value to be paid by the government that makes this particular world turn around.

It’s an interesting idea and one which bears further exploration, especially if you’re more into the numismatics side if things instead of solely into coin collecting. And yes, that was a mouthful of a word and I hope you’ll forgive me for throwing it around! However, it needed to be said, and if you don’t feel up to getting your mouth around it I suggest you leave it for now. Even now, after hearing the word spoken and having read and written about it, I still find it hard to get my tongue around it with any sort of dignity.

If I don’t give it due consideration before I speak – the word, not the actual practice of it – I find myself uttering a mouthful of utter gibberish and end up looking like a total dimwit. So take heart and don’t give up hope – if you do like the numismatic side then you have all the time in the world to learn to say it properly.

Unfortunately US gold coins were stopped being minted in 1933 during the depression era in an attempt to bring the US out of its slump. It was then made illegal for anyone to hold any gold bullion or US gold coins, and most gold coins were recalled and melted.

Luckily for the coin collector of today, there were a few hardy coins still surviving and most of these I have to say were probably lurking somewhere overseas. That leads us to where we are now with US gold coins – scarcity and rarity.

To better give you an example of what I’m talking about, a 1933 US Saint Gaudens Gold Eagle went for a whopping seven and a half million dollars. Don’t get your hopes up though, it doesn’t mean that your US gold coins will go for the same price or even a fraction of it.

What it does mean though is that some coins are still rarer than others and more in demand. US gold coins were minted until 1933 but even after the ban was lifted on gold bullion and gold coin ownership in the 1970’s no more US gold coins were minted that would go into circulation.



Ian

John Morris asked:


A lot of people find collecting gold coins as not only an incredibly interesting hobby but a fairly lucrative one as well! Over time, your collection will accure value and parts of it can be sold if you desire. This way, you will have additional income for yourself later in life in addition to a fantastic collection of valuable coins.

1. Face To Face: Coin Collectors Know Best

The internet is home to a lot of gold coin dealers wherein you can meet all sorts of people from all over the world who are into both buying and selling gold coins. Of course, it is a rather convenient venue for you to be able to do your transactions. You must be extremely conscious, however, when it comes to dealing with other gold coin collectors that you will meet through the internet. While there are some real gold coin enthusiasts in the internet, there are also those people who are posing as gold coin collectors and are just looking to rip you off.

2. Why Gold Coins?

The history of gold coins dates as far back as 2,700 years ago. The first gold coins in the world were issued in Lydia around 640 B.C. certain internet websites will provide you with a lot of information about the history of gold coins.

As money, gold coins have been a convenient way for people to do their transactions. Gold was only used for coins that were considered of a higher value. As gold is not the most common ore, it became impractical for gold to be used in the common coin systems of all major countries. This means a collection of gold coins is extremely rare due to the fact that gold coins are no longer being produced.

3. Gold Coins For Investment

- Gold is sensible investment: all major countries use reserves of gold (such as Fort Knox) to maintain their national worth - A highly convenient investment - Physical gold is extremely stable in value

4. Commemorative Coins

When it comes to the commemorative gold coins, since gold is deemed as a highly valuable kind of metal, it is an obvious choice when it comes to making or producing special commemorative coins. In the past, there are sets of gold coins that were just issued to mark coronations as well as other important state events. A lot of financial reserves that are being held by banks are in the form of gold coins. Gold coins are a desired form of a reserved asset since gold coins are not really used for circulation anymore.

5. About Collectors

There are a lot of various gold coin sellers, buyers as well as collectors who are waiting to bid on the best kind of gold coins in the market most especially in the internet. For most gold coins that can be bought as well as sold at prices that are closely related to their intrinsic gold content. The most popular bullion gold coins are the krugerrands as well as the sovereigns.

For most gold coin collectors, there are the highly coveted rare gold coins and a lot of gold coin collectors are interested in these rare gold coins that they will offer high bids just to be able to get their hands on these.

A lot of people who are looking for things to collect are in real treat if ever they try out collecting gold coins most especially because gold coins can be bought in highly excellent and may be in even mint condition for only a relatively low premium over the gold coin’s gold content. Also, since the coin is made from gold, it is highly unlikely that it will tarnish or even discolor.

If you are looking into collecting gold coins, first research the various gold coins that are available in the market today. Find out how much they are really worth due to their gold content, and then factor in any additional value to the coin for being rare. Always be on the lookout for fake coins, and have coins appraised by a gold coin expert to avoid large differences in price.



Terry

Ken MacKenzie asked:


Gold coins have gone up a great deal in value in the last couple of years and since they are now so expensive, there are a few things you should watch for when making your purchases. With the advent of the internet, you are not limited to the local coin dealer anymore. This can give you the opportunity to get better prices on many coins, but also may introduce a few more things for you to think about when buying your gold coins.

1. Whether you are buying from a bricks and mortar dealer or buying online through a website or and auction site like EBay, check the reliability of the dealer first. For a store, at least check with the local Better Business Bureau. If the dealer is a member of the Professional Numismatists Guild (PNG), that is a big plus. For an EBay auction, check the seller’s feedback rating. If it’s very low, or there are many negatives, think twice (and a third time) before spending a large sum with them. Even if the feedback seems good, look closer, some people will buy or sell a number of very inexpensive items to build up their ratings, then jump in selling big ticket items. On large ticket items, ask if the seller will agree to use Escrow.com. They act as a middleman in the transaction and the money doesn’t pass to the seller until the buyer is satisfied with the item. There is a charge, which the buyer would be expected to pay, but its well worth it when big money is changing hands.

2. One of the biggest problems buying collectible gold coins is grading. Your idea of an MS65 may be different than the dealer’s. Many coins have a huge gap in value between grades. Avoid the issue by buying only coins that have been graded by one of the third party grading services. Make sure that you only accept the major services (ANACS, NCG, PCGS, NCS, ICG) grading, there are some lesser known grading services whose grading may be suspect. You should also want the grading to have been done in the recent past. Grading standards have changed over time and what was an MS65 five or ten years ago, might only be an MS63 or 64 today.

3. Make sure the seller has a return policy that will allow you a refund if you are not satisfied with the coin. This should apply to both on-line and off-line dealers. This is especially important if you are buying a non-certified coin. You want to have the option to return it if your grading service returns a lower grade than you bought it at.

4. Buy the scarcest coin in the best condition that you can afford. Many collectible gold coins sell near the melt price of gold because there are more than enough around to cover demand. This is especially true in the lower grades. When gold increases or decreases in value, these coins will follow by a like percentage. But the higher the grade, the lower the population and demand will push up the price rather than just following the price of gold.

5. Try to invest regularly. As with the stock market, it’s very difficult to call the tops and bottoms of the coin market. Over the course of time, you will fare better by dollar cost averaging than investing a large amount at one time.



Arnold

Christina Goldman asked:


Featuring an adorable image of a Panda bear, the Chinese Panda Gold Coin has become one of the most sought after gold bullion coins. Here are twenty-one facts about this unique premium gold bullion coin.

1. The Chinese Panda coin was first issued in 1982, as a limited-edition gold bullion coin.

2. Each coin features a cute Panda bear on the obtuse side of the coin.

3. The 2008 Panda coin is the 26th different design in the series, featuring an adult Panda and a cub munching on some bamboo stalks.

4. The gold Panda design was changed every year through 2000.

5. The Chinese government invoked a freeze on the design in 2001.

6. Only the 2001 and 2002 issues feature the same design, however.

7. The freeze was lifted in 1983 in response to demand by collectors of the coin.

8. Four different sizes of coins were issued the first year - 1/10 ounce, ¼ ounce, ½ ounce and 1 full troy ounce size.

9. The Chinese mint added a 1/20th ounce size coin in 1983.

10. The larger sized 5 troy ounce and 10 troy ounce coins were added in 1986.

11. The Chinese gold panda coin is only one of few gold coins issued worldwide in this size.

12. The coins have a purity of .999 gold.

13. The coins are not technically proof but a ‘proof-like’ brilliant uncirculated condition.

14. Proof sets were issued in 1986 through 1995. These proof sets command a much higher premium because of their limited issue and scarcity.

15. The Panda coins have a much smaller mintage, compared to other gold bullion coins such as the American Eagle, and Canadian Maple Leaf.

16. The earlier dated Pandas, in particular, have a very small mintage. The mintage of the 1982 one troy ounce Panda coin had a mintage of under 14,000.

17. 289,000 is largest mintage of any one troy ounce Panda coin.

18. In 1987, China issued the gold Pandas with two different mint marks - Y and S. A third mint mark was issued for the boxed proof set.

19. Additional commemorative issues of Panda gold coins were issued and distributed at coin conventions.

20. Ownership of the gold Panda coin was prohibited in China until 2004.

21. Panda coin jewelry is very popular. The one troy ounce coins are commonly used for necklace mountings. The smaller sized Pandas are used to create earrings, bracelets and pendants.

As you can see, the Chinese Panda gold coin is truly an exquisite, rare, fine bullion coin that every gold collector would be proud to own!



Gilbert

Tim Anderson asked:


ecting is said to be the “Hobby of the Kings.” Coin collecting is different from money collecting. Collecting coins as an art form can be traced back to the 14th century. Today, people all over the world are collecting coins. Some collect it for their value, some just for the fun that they get from getting their hands on coins.

Most coin collectors, start out as informal coin collectors. They are leisurely collectors which do not have a specific goal in collecting coins. They collect coins from different countries or from different time periods as opposed to

an advanced coin collector who will collect coins with a specific target in mind. He may want to collect coins from a certain nation, or a certain time period. Many coin collectors would want to collect coins from a certain country during a certain period of time. This kind of coin collection lets the collector travel around the globe through the coins. People may want to collect coins from countries they had visited.

Another way of collecting coins is by taking history in mind. Many coin collectors engage in collecting coins during a certain period in history such as wars or Declarations of Independence.

Error coins

There are people who find coins with errors because these kinds of coins are rare now.

There are many ways to collect coins. One must feel the urge to obtain a hobby first before he decides whether to stick with it or not. Coin collecting can require certain amounts of money and the collector must be wise in engaging in such a hobby.

Numismatics today is a hobby that many people enjoy. One of the most cherished and most valuable collections that anyone can ever have are those of gold coins. The most expensive gold coin ever bought was worth around eight million dollars. This was the American 1933 Gold Eagle. This is why the collecting of gold coins deserves to be called the hobby of kings.

Since gold coins are no longer in circulation, the price for one of this rare commodity is quite high. Gold is now used for other things such as jewelry or plates that people retain as an investment.

Since gold coins can no longer be used to purchase merchandise, most coin collectors just keep them to remember that people had once used them.

A lot of people keep gold today as an investment because they assume that the demand will cause its market value to increase. Others hold it as a form of insurance should the financial situation become worse. Even billionaire Soros recommends investing in gold, including buying gold coins this days. Soros is so good at understanding the economy, he was even able to drug down 12% British pounds and make more than 1 billion in one day! This is why when he speaks about economy, the whole world is listening.



Carlos

Peter Sicoli asked:


The Bull and The Bear are continuing to bang heads. Wall Street and even Main Street USA, and I am sure even your street is in shambles. The banking system is melting before our eyes and is in total chaos. The bankers, all the smart players are demanding a bailout. They have ripped us off, lined their pockets and are smoking a big cigar bought with their fat wallets and they want help! The only bailout plan should be the bankers getting bailed out of jail for this mess, the mess that has almost crippled our economy and the mess that they have put us into. So as we sit around wondering what’s next, now we need to ask ourselves… Are there any safe places to put your money in this time of the weak Dollar, while all of the financial lenders go belly up, with the oil market a ticking time bomb, with wild fluctuations in the stock market? There is hope for that safe haven. You need to follow this advise, you need to act now, this is not a doom and gloom scare tactic, it is simple real life mathematics. We say park your cash in: gold. Yes Gold! Whether it is coins, bullions, or Kruggerands, gold has historically been a safe haven for your hard earned cash. That is not about to change any time soon, if ever.

The California Gold rush is a well documented example of how far back gold has been popular. In fact, we can go back thousands of years to trace the investment lineage of gold. Gold has historically and will continue to be a solid investment! Think about this, gold is an item you can hold in your hand, that alone is a main reason why it is so valuable. It is an item you can hold, wear around your neck or store in a safe. It’s not an abstract number in a computer bank that rises or lowers by market movers who have no clue. It’s not spat out by a magic money tree in the basement the Federal Reserve. It is produced by mother earth and all her wonderful resources. Gold, to this day has to be mined by gold miners and separated from the earth. Gold is virtually impossible to become worthless, along with silver it is what all paper and minted money is supposed to be backed by in all countries around the globe. Everywhere you can think of, world economies depend on the price of gold, and more importantly the economies need the value of it to be maintained in a positive manner.

The history of our economy has always been whenever derivative money such as the Dollar have shown times of volatility, causing stocks and bonds to go on a wild ride, that is when most seasoned and wise investors have turned to gold and precious metals as a place to not only invest but to protect their hard earned precious wealth. Way back when gold was first discovered, gold has always been the rock upon which all currency and wealth is built upon. Stocks, bonds, oil, pork bellies, orange juice futures and other commodities, can collapse any day, gold will never collapse. The original money known to mankind is, that’s right gold. You can wake up one morning, or return from work one day and in an instant The Dollar can become worthless on the FOREX, but gold will never lose any of its value. If the Dollar were to become worthless, then investors would be pushing up the value of gold, driving the price to historic levels, and investing much more of their money in it! That will be an all time Gold Rush, and your pockets will be lined with golden dollar signs.

Now, I do not want to get your hopes up, in fact the Dollar going to zero is not a realistic scenario. But now that we have your attention we are just exaggerating to make a point–a very realistic point that gold as an investment really has some true merit. Gold coins and gold bullion have been magnificent investments for a long period of time. We do not see this changing and the more troubled times that occur in the speculative stocks and bond markets, thanks to a few greedy people, the better gold coins and bullion become as investment vessels. Gold will always remain a smart investment choice, perhaps one of the few, safe outstanding plays for a college fund. If college is still greater than 15 years out, then a play on gold, may in fact be a safe haven for a few of those “golden” eggs. In other words get into gold when your child is born and just tuck it away for the first college day.

Now, let’s look at what may not be fun to review, but is probably a good time to discuss the facts, and that is a few hard economic realities. First things first, the value of gold and the other precious metals, always reflects global inflation. Inflation is caused by the increased circulation of derivative or fiat monies. Inflation, even if it were to slow down now (very, very unlikely), is a hard reality of modern economics; thus, the value of gold will continue to rise. All the precious metals will continue to see an increase over the next decade and beyond.

For another thing, does it seem to you that geopolitical uncertainties are going do just vanish anytime soon? Yea, OK! There are way too many world leaders that have an agenda that is self centered and dangerous. Turmoil amongst world leaders is only going to worsen over the next few years. The world, especially some of its world leaders is crazy with greed. There are more than enough of crazy “leaders” in the world, plenty of people who will kill you for their fanatical cause, will keep the price of gold at all time highs. As the planet generally grows wealthier, while on the one hand that gives more opportunities for more people to do well, it also provides more opportunities for people to do wicked things. World financial markets, regardless of the country do not like the risk with this political chaos. These are threats to world economies and to the wealth of these world leaders. And yet, the smart and wise investors continue, year after year to profit from this kind of risk. And they know that perhaps the very best way to profit from risk is investing in gold and other precious metals. When markets grow more destabilized, which seems to be happening most of the time, the price of gold and precious metals goes up, because people around the world value it more.

There is always risk to the stocks and bond market anyway. No different than betting on some sports action in Vegas or a long shot at the races, the larger the risk or odds, the greater the return Smart investors and wise gamblers know that greater risk taking, if done right, leads to greater profits and earnings. But, those bigger profits are also less certain profits. Yet with gold, the riskiness has a very strong and historically proven tendency to drive up the value of the precious metal. So it can be said that with gold investments, greater risk basically GUARANTEES greater profits!

Remember, whenever the markets experience some turmoil, people start placing their money into more solid things. People want to be able to sleep comfortably at night; they need the comfort that their nest eggs are protected. They want less speculation, less derivation, and more concrete stuff. When stocks and mutual funds are reeling, gold coins and gold bullion are rising. For they are the stuff and the foundation that economies are made of and provide the true value that investors seek. Beginning today you should start building your core foundation of gold coins and gold bullion investments. For more information please visit us at http://www.investyourmoney2.com



Kristin

Max Lloyd asked:


Gold coin collectors everywhere are celebrating the soaring gold prices that have been seen in recent times. Coins and collections that were once valuable are now very valuable. For 2009, gold coin collecting will remain strong.

Proof gold coins are expected to be strong performers through 2009, as are rare date and early gold. With rare date and early gold coins, the better they look, the higher their value. Proof gold coins are rare by definition and those in F.D.C. (fleur de coin) condition are going to have the highest value.

The Saint Gaudens Double Eagle gold coin is still one of the most beautiful, popular and sought after gold coins on the market, and will remain so for a long time. Saint Gaudens proof coins, and those with no motto (without In God We Trust) on them are more rare and therefore more highly valued.

Newly minted 24-kt Jackson’s Liberty First Spouse gold coins, both proof and uncirculated are going to be strong for the coming months. Other gold coins that are remaining high in popularity are the $10 Liberty and the $5 Liberty, the $5 Liberty Half-Eagle (with or without motto), American Gold Eagle bullion coins, the Commemorative US gold coins - 1988 Olympic (uncirculated) and 1986 Statue of Liberty, British Sovereign gold coin - King Edward 1902-1910, Canadian Maple Leaf, and the Australian Lunar gold coins - 2005 1 oz Gold Rooster and 2004 1-oz. Gold Monkey.

In uncertain financial times, gold is one thing whose value continues to remain strong if not rise. Consider adding any of these coins to your collection.

One of the best gold coin investment is Saint Gaudens Double Eagle Gold Coins. They represent great collectible and investment opportunity as they increase in price on average about 8% a year. Here is a little history on Saint Gaudens gold coins.

In the early 1900’s, President Theodore Roosevelt inquired of sculptor Augustus Saint-Gaudens as to whether or not he would be interested in re-crafting the design or the nation’s coinage to look more like the coins of ancient Greece, where democracy first took root. What Saint Gaudens created was a breathtaking high relief design featuring the image of Miss Liberty on one side and a flying eagle on the other. This coin symbolized both the county’s strength while moving into the future and independence as a powerful and glorious nation.

Only a few proofs were struck, and then production began of the $20 gold coins. Because of the high relief, these coins were not the favorite of bankers (they wobbled when being stacked). Eventually the coin was altered to be flatter. Even though all of the Double Eagle gold coins are considered collectors items, those struck in high relief are more highly prized.

Interestingly, this incredible symbol of America was, for a time, produced without the motto “In God We Trust.” Roosevelt felt that it was sacrilegious to have that motto on coins that could be used for gambling. The Saint Gaudens Double Eagle gold coin is indeed a symbol of greatness. A symbol of artistry, independence, strength and even the workings of our government, this gold coin has a history that spans a century and beauty that is unmatched.



Oscar