Investing in gold coins like the American Gold Eagle Bullion coin is one of many potential investment options. If you want to further diversify your portfolio, you can buy gold for investment through your self-directed IRA account. Here are 7 tips to help you if it is your first time investing in gold coins.
American Gold Eagle Bullion Coin: 7 Investing Tips
As you consider prices for different products, it’s important to understand the melt (or spot) value of the coin. This information is widely available for gold, silver and other precious metals, as it is the price that’s usually reported in the news. While you will not be able to purchase coins and bars at these prices (there is always a markup of some amount for the physical product), this will give you a general sense of current values.
2. Establish Your Reason For Investing
— Birch Gold Group (@BirchGold) September 11, 2017
People invest in gold for a number of reasons, such as protection against geopolitical risk or as insurance against inflation. Of course, the reasons for each person will be different. If you want to buy gold coins as a long-term investment, it is wise to do your research and understand all of the factors that go into the value of the coin or bar that you’re considering. For example, while some products are valued solely based on their precious metals content, others receive value from other factors that may be important to you.
3. Consult with an Expert
If you are seriously considering investing in bullion coins, it is best to consult with someone who knows more about it, so that you can be briefed on all of the pro’s and con’s, and how they relate to your personal situation. Furthermore, this is an opportunity to ask all the questions you have before you invest.
You should note, however, the personal interest that some professionals have in guiding you away from physical gold coins. For example, many financial advisors don’t stand to make any money on your purchase of these products, so it is not in their own interest to recommend that you buy them. For this reason, some may actively encourage you to place your money elsewhere.
When you’re making a cash purchase for physical delivery, beware of dealers who won’t deliver your bullion to you, but to a ‘secure facility’. You should note, however, that coins or bars purchased for use in a precious metals IRA must be stored in a government approved depository.
5. Be Cautious When Buying
Do not buy just because a sales representative or a telemarketer offers you a good deal. Avoid sales pitches which promise minimal risk. Reputable sales representatives will disclose the risk of certain investments upfront.
6. Consider Additional Cost
— Birch Gold Group (@BirchGold) September 25, 2017
Investing in gold coins or other precious metals comes with additional cost. You may need to buy a safety deposit box, buy insurance or rent an offsite storage to safeguard your bullion coins.
7. Watch Out For Scams
Be on the lookout for scams. When buying bullion, ask for a certificate of authenticity or a guarantee for the bullion’s precious metal content. Note that certificates of authenticity can be faked, so one way to know if the dealer or company is legitimate is through research.
In addition to that, watch out for precious metal dealers offering delayed delivery or free storage.
Watch this clip from IrixGuy’s Adventure Channel to know why coins are better investments than bar or rounds:
Like any other investment, investing in American Gold Eagle Bullion Coin has risks. So always do your research and do not be afraid to consult an expert to further help you.
Are there other tips you can share on investing in American Gold Eagle Bullion Coin? Share it with us in the comments section below!