If you think that you want to buy cheap good, hopefully we can revise that statement to say that you want to buy inexpensive gold. If we can clarify that the gold you desire is inexpensive and not actually shoddy and of lesser quality, which is what comes to my mind when I think “cheap,” then we can take a step closer to a successful gold investment or addition to your gold coin collection.
Gold bullion bars and gold bullion coins trade relatively close to the gold spot price, and the weights of these items ranges from a stamp sized gold gram bar to a much larger one-ounce gold American Eagle coin. Some gold bullion coins can be quite expensive, like some Chinese gold Panda coins that sell for as much as 13% over the gold spot price. Credit-Suisse produces relatively affordable gold bullion bars, and coin series like the South African Krugerrand and the Canadian Maple Leaf trade much closer to the gold spot price than the pandas and other bullion coins.
You can buy cheap gold in scrap form or through old jewelry purchases, but security-seekers tend to do better financially with investment-grade gold coins like the $20 Liberty Head and the $20 Saint Gaudens Double Eagle. MS61 and MS62 grade coins offer the non-confiscatability of a collectible coin, yet the still move in the same direction as the gold spot price so you are not stuck with a rare collector’s piece.
Even the low-grade investment-grade coins tend to outperform gold bullion for investors who hold longer than 14 months, so if you are searching for long-term safety with physical gold then you might want to delve into the historic American coin market. Whether you decide to buy cheap gold to cut costs or to go with investment-grade bullion bars or coins, feel free to call us directly for dealer locations and live discounted quotes on the most commonly traded gold products.
Steven Martin
Senior Gold Specialist - Buy-Gold.org
