← Back to All Videos

Weak Economic Data leads to Increased Gold Prices, Gold Trading

Blog Jun 26, 2012

The weak economic data released by US authorities has been putting pressure on the US dollar and has led to an increase in the Gold Prices, which had slid down to below $1600 an ounce in May this year. Gold prices had risen sharply in February and March and even crossed the $1700 an ounce mark. However, this uptrend had not restricted the demand for gold and its products and gold trading has remained buoyant. Historical trends show that prices of gold have risen over the long term despite some small hiccups in the short run.  This is mainly due to the metal’s easy liquidity and appreciation potential features.

Gold Trading: Key Things for Investment in Gold Coins
Gold trading can be done in several ways. Investors can buy gold in various forms- coins, bars, jewelry, investment through ETFs and purchase of stocks of companies engaged in gold mining. Among these, the purchase of gold coins is considered to be the most popular option among investors. However, an investor needs to take certain precautions before buying gold coins or taking up gold trading of coins.
•    First and foremost an investor needs to know that there are different types of gold coins for trading and investing purposes. Although most of these are made from pure gold, one can find several varieties that include only a certain percentage of gold and have been mixed with certain other metals. The valuation of a gold coin should be done in relation to its gold content so it is essential that investors check the gold content in a coin before embarking on trading gold.
•    Investors can choose to invest in bullion coins or rare coins. This will depend on their motive for venturing into gold trading. People wishing to buy gold coins as a hobby or for expanding their coin collection should consider opting for rare coins. If they are looking to buy gold coins for the purpose of reselling them later, they could consider investing in bullion coins. Some of the most popular bullion coins are the Canadian gold maple leaf, South African kruggerand and American gold Buffalo.
•    In case of rare or numismatic coins, the value may differ on the basis of their rarity factor and their condition. While the value of gold coins that exist in limited number is bound to be higher than the ones that are more commonly available or sold in the markets, the condition of a coin is also very important. Several rating scales are being used to identify the true value of such gold coins. Investors must ensure that they check the rating of rare gold coins before investing.
•    The grading system and pricing play a key role in the valuation of gold coins and gold trading. The grading system is used to find the correct value of a gold product on the basis of its condition, shine and quality.
•    Gold coins can be bought from various sources. However, in order to avoid dealing with fraudulent players or buying low quality products, investors should choose to deal with only experienced, registered, licensed and reliable sources.
•    Before buying numismatic coins, investors should verify the authenticity of the coins being offered and get their value verified by an authorized agency.
•    Always deal with a government agency if you wish to ensure that the purchased coins have a resale market. Purchases made from privately owned companies may not be a wise investment and investors may get stuck with coins bought from such agencies.

Gold trading can be initiated even with a small investment and buying small quantities of gold coins or gold products. The decision of whether to invest in bullion coins or rare coins will be dependent on the time frame for which the investor is willing to hold them along with several the price of gold.

Sources & References In This Article

Tags

Tags:

Similar Posts

Blog Jan 3, 2024

The Great Taking: Understanding the Shift in Global Debt | A Deep Dive into Financial Collateral

Learn More
Blog Dec 19, 2023

Is the U.S. Dollar in Crisis? Exploring Currency Markets, Inflation, and Bank Downgrades

Learn More
Blog Dec 8, 2023

From Treasury Outflows to Inflation and Consumer Anxiety, how far will it go?

Learn More
Blog Dec 8, 2023

Your Safety Is Not Their Concern

Learn More
Blog Sep 29, 2022

What’s Driving Energy Prices Up? Will the Crisis be worse than the 1970s?

Learn More
Blog Sep 15, 2022

Underneath the Surface: Recession or DEPRESSION?

Learn More
Blog Jan 9, 2020

REAL OR FAKE GOLD, BIG VS SMALL BANK DEPOSITS… Q&A with Lynette Zang and Eric Griffin

Learn More
Blog Nov 28, 2018

ENTERING THE MINEFIELD: Is Your Armor Ready? By Lynette Zang

Learn More

Not Sure What Works for You?

Our team has over a century of combined experience in guiding our customers to the best products is for their wealth protection and preservation goals. Call us today.

888-696-4653
or schedule a call

Schedule A Strategy Session

Get Your Free Protection Guide

Stay Informed

Receive the latest updates regarding the economy.