Questions About Buying Gold Coins

If you have been watching the interest in gold build in 2010, you may be interested in buying gold coins for yourself. Did you know there is more than one way to own gold? As many people are new to gold there are many questions that need to be answered to better understand the advantages of gold.

Gold plays a unique role in portfolios as it has properties that are different than many fundamental investments. Gold is one of the truest forms of money as it has been used for centuries as a form of currency. Today the price of gold is valued based on the US Dollar as that is the form it is universally traded in.

Physical gold has two forms which are gold bullion and rare gold coins. Rare gold coins have the same relative gold content as gold bullion though have enhanced value do to the quality and rarity of the coins. There are enough rare gold coins in circulation to have an open market of supply and demand which adds to their ability as a positive asset to hold.

Gold is seen as a way to preserve wealth as current monetary policies have devalued the value of paper currencies. The value of gold increases as inflation erodes the value of the dollar. This is a major difference as the value of your bank account in dollars has decreased over the last decade while gold has risen in value.

Storing Gold

People do store their own gold in a variety of methods. For people new to gold, gold offers an amazing price to weight ratio that allows for great value in small sizes. This allows for people to protect and hide their wealth in gold without huge vaults. You do have to take your own responsibility for the method you choose. With current spot price of gold over $1,200 an ounce just 3 gold bullion coins would be worth over $3,600. Three 1 ounce coins do not take up a lot of space, though hold tremendous value. With the current trading price of many mint grade rare gold coins the price to weight ratio is even more magnified (one rare gold coin can be worth $2,500 to several million dollars).

Owning physical gold adds an extra layer of protection if a true economic disaster ever occurs, as you will be able to buy goods and services with the precious metal.

The current price to buy gold bullion coins is the spot price of gold plus a small premium for physical gold. Buying from trusted brokerage firms is the best way to ensure that the gold you buy is authentic. Gold from online sources have been known to offer not the purest forms of gold coins.

The spot price of gold fluctuates on a daily basis based on many factors including supply and demand, value of the dollar, and more. The spot price of gold can be determined by looking at the right hand sidebar of ITMTrading.com which shows the current indicator or "spot" price.

Currently, the factors that typically have positive relationships with the value of gold are in motion. These include quantitative easing, economic crisis, fears of inflation, banking failures etc.

Gold bullion and rare gold coins are best bought through a reputable firm that can support you in the best form of gold to own for your portfolio. There are many reasons why rare gold coins are considered the best way to own gold and only through a detailed discussion with an account executive could you make an informed decision.

Two of the best reasons for owning rare gold coins over gold bullion is that it is non confiscatable and it is a private position in gold (non-reportable).

There would be no way for an individual to verify the purity or quality of gold coins through local coin shops or online stores.

The choice for buying gold is looking for A+ ratings of gold brokerage firms like the one ITM Trading has with over 15 years of high quality service.