If you’re one of the growing number of people starting to look into investing in gold or silver, start small with U.S. gold and silver bullion coins. Experts agree that the safest way to invest in precious metals is to actually hold physical gold and silver in the form of bullion and/or rare and bullion coins.
U.S. gold and silver coins can be found on Ebay as well as a number of reputable dealers. Browse the Ebay auctions to get an idea of how much various forms of gold and silver are bringing. This will help you begin your precious metals education prior to your first purchase. Also, check out local Gold & Silver Exchanges or Coin Dealers near you and stop in and visit with the owner. Ask him about his commission rates for both buying and selling. Normally one would expect to pay 3-10% over the spot price of gold or silver for bullion coins such as the American Gold Eagle, Canadian Maple Leaf, South African Krugerand, etc. Dealers normally buy bullion coins back at the Daily Comex spot price. If they pay less than spot for gold or silver coins, find another dealer.
Another good way to buy silver is to buy Pre-1964 U.S. silver dollars, dimes, quarters and half dollars. These coins are 90% silver and their value fluctuates with the price of silver. These days they are sold at x-times their face value. A silver dollar contains .7736 ounces of silver, halves have .3618 ounces, quarters .1809 ounces and dimes .0724 ounces. With today’s price of silver the content of a half dollar would have $6.33 worth of silver. 10% over spot on these types of coins would add $.63, making the sales price just under $7 a piece.
Watch the prices of gold and silver. Daily and yearly charts are easy to acquire. Gold and silver usually move together in the same direction. Try to buy your coins when you believe the prices are near the bottom of a chart wave, or just buy the dips.
The U.S. Mint is a good place to buy certain gold and silver coins, when they are available.Bargains can occasionally be found on Ebay as well.
Gold Futures and Options can provide great profits in the precious metals trade if you catch the right wave, but most people don’t and you can lose a lot of money trading gold on the commodity exchange. Gold and silver stock prices fluctuate with the price of gold and can generate both profit and loss as well.
For the beginning precious metals investor, I would advise staying away from the comex or forex exchanges and buy and hold the physical gold and silver. One of these days in the not-too-distant future, you will be glad you did.