Buying Gold Coins: What You Should Know About Gold Prices

Gold prices were rising as much as 6% in the third quarter of 2010 according to the US Mint; this rise could be due to the 5% rise in demand for gold coins and bullion coins. Another possible factor which caused the gold price to rise is the decline of the greenback.

The currency value decline boosted gold investment; there was more demand for gold coins with a record currency figure. Hedge funds were also buying up more gold coins, which impacted the demand for gold. However, the US Mint seemed to experience difficulty with the gold coin production; especially the 24-karat American Buffalo gold bullion as it was the most popular gold coin at that time with the Canadian Maple Leaf.

Pricing Information

Any purchase of US gold coins must be preceded with a research on their actual value. Accurate and up-to-date information on every type of US gold coin for purchase is necessary as different gold coins have different values; for example, there are differences between the bullion gold and numismatic gold coins.
A bullion gold coin is usually purchased for hedging inflation while a numismatic gold coin adds to a growth in personal wealth over time.

Bullion gold coins are sold according to their intrinsic gold content by ounce determined by the market price whereas numismatic gold coins are sold according to their rarity, popularity, significance, grade, quality, demand and supply.

The Right Purchase Price

The right purchase price of a bullion gold coin is dependent on its intrinsic value, actual market price, manufacturing costs and other premiums. Bullion gold coins pricing is usually higher than the gold market’s pricing albeit a small margin.

Some popular bullion gold coins include the American Eagles, Canadian Maple Leaf, China Panda and the Krugerrands from South Africa.

There are several steps to follow in determining the best selling price for any preferred gold coins. Some of these include using a gram scale weight for determining the gold content; acquiring knowledge of the spot gold market; using a trusted source to help determine and evaluate the purity of gold and consider all factors of costs that are associated with gold.

It is imperative to be constantly alert to the gold market price, which can fluctuate unpredictably. Spot prices and market prices of gold can be monitored online easily today. Finally, there are many factors of consideration in determining the best or most appropriate purchase price of gold coins, which include manufacturing and distribution costs as well as dealer commissions.