Just 10 years ago, the price of gold was around $350 per ounce, rising fairly steadily through most of the decade. In late 2007 and 2008, however, when economic recession hit the U.S., gold prices experienced a meteoric rise to a high of $1,895 per ounce, and settling on a price at the end of 2012 around $1,700 per ounce. There are several reasons that gold has seen such an increase, but mainly it is due to an uncertain economy, fear of global economic instability that will cause a decline in the value of the U.S. dollar, and high demand for the precious metal.
Since the rapid decline of the U.S. stock markets that caused the most recent economic recession, many savvy investors have included gold as part of their overall investment strategy. The best place to start, if you’re new to gold buying, is with gold coins. However, a simple internet search will reveal that there are literally thousands of gold dealers, and it’s not as simple as choosing what brand of peanut butter to buy. To avoid the potential pitfalls, read through these helpful tips to find honest gold coin dealers and get a good deal on a solid investment.
Focus On The Investment Aspect
Many new gold coin collectors are easily taken in with the look of the coins they are purchasing. However, it’s important to keep in mind that gold coins are not artwork; while they may look pretty, what’s more important is that they are worth what you pay, and you get good value for your money. Don’t pay a premium for the way coins look, do your homework to find out which ones are worth the most and buy based on value.
Work With Reputable Dealers
You may choose to purchase online, or at a physical store in your area; either way, you need to identify a trustworthy dealer before you buy gold bullion from him or her. You may want to begin by getting referrals from friends or colleagues who have purchased gold coins, or look for reviews from other customers online. With your money on the line, finding a reputable dealer to do business with is very important.
Understand and Follow the Laws
There are a lot of rules, laws, and regulations surrounding the sale and purchase of precious metals such as gold and silver—and some dealers may be looking for ways to get around the rules. Check out your source to ensure that they are selling you legitimate coins. If anything about the transaction seems questionable or dishonest, it’s best to avoid the transaction altogether to avoid losing money, or worse, getting in legal trouble.
You should also do some research about how gold coins are reported to the IRS as part of your assets. If you fail to properly report them, you could end up paying fees and other penalties to the government.
As a savvy investor, you should always be looking for ways to diversify your portfolio and add investments that create value. Gold coins and other precious metals are a great way to not only add value to your investments today, but also create a secure form of wealth that will last even in times of uncertainty.
Great Southern Coins is a leading rare coin and precious metals firm recognized as one of the leading coin dealers and one stop location for all your precious metal needs.