Profiting from Gold Coin Trading
As the prices of precious metals rise, many people are profiting from gold coin trading. Also with inflation on the horizon many first-time investors are likely to explore the gold market for themselves. Profiting from gold coin trading can be risky if not done correctly, so it’s important to get the facts and deal with a reputable trading exchange.
For starters, the most widely-traded gold bullion coins are American Eagles, Canadian Maple Leafs, South African Krugerrands, Austria Philharmonics and Chinese Pandas. Versions of many of these coins are bought, sold, and traded in weights that range from 1/10th of an ounce, to a full troy-ounce.
To reduce risk, long-term investors may want to trade in PCGS, or NGC-certified gold coinage. Widely-traded certified gold coinage includes the $20 Saint Gaudens, $20 Lady Liberty, and the $2.5, $5, and $10 designs of the Liberty, and Indian coins. Properly chosen, US government-certified gold coin investment historically has provided higher profit margins than modern date bullion coins.
There Are Costs Associated With The Buying, Selling, And/Or Trading Of Gold Coins.
Both bullion, and certified coinage carry a premium that is commonly referred to as the buy and sell spread. The buy/sell is the difference between the sellers buy price and there sell price, at the exact moment the authorized trade takes place.
Gold Coin Trades, And Your Timing.
There is greater risk associated with gold coin trading for investors who hold a short- term, get rich quick philosophy. This is due to margins and shipping costs associated with your purchase, these costs will require time to reach their breakeven point, and you can never count on the gold market moving in a straight line.
A prudent method is to hold gold bullion for short term trades when holding for 1-14 months, and accumulate certified gold coins, when holding for over 14 months, when safety is paramount
Stewart Lawson
Senior Staff Writer - Gold-Coin.com
