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Friday, December 7, 2012

The Factors That Dictate the Value of Coins

As a collector, it is best that you know everything about the value and what factors affect such, to be guided on what kinds of coins are worth to collect. Coin collectors look at the price and value of the coins quite seriously. The price pertains to the amount that they need to shell out in purchasing coins from various resources. The value, on the other hand, is the price that you will get paid for once you have decided to sell the coins on your collection.

More about the Coins - Condition and Melt Value

Most collectors of coins are aiming to gather the types in great condition and the ones that are no longer in circulation. As a collector, you should also learn the basics on how to keep the coins safe and clean. These factors are going to add on the value of the coins. This is the reason why you have to acquire the tools that are necessary to keep your collection intact.

You just have to bear in mind that the qualities that you are looking for on the coins that you want to collect are the same qualities that would be looked into by the people who will buy these coins after years have passed and you have decided to earn from what you have accumulated.

The melt value of coins, on the other hand, pertains mainly to gold and silver types. In this case, its metal properties determine the value of the coins. The price of these coins will depend on the market price of gold and silver. If you are a collector of these types, you have to keep an eye on these prices to make sure that you can get a good deal out of your collection. You would also know in this case if it is a good time to look, haggle and buy gold and silver coins.

What about the Factors of Supply and Demand

How important is supply in determining the price of these coins? This is a major influence when it comes to pricing. The available supply of coins is based on the initial mintage of the coin. In many countries, the coins are being destroyed when each year ends. This means that for each year, the supply of the coin can no longer be changed, except in instances when there are re-strikes.

The demand for any types of coins is dictated by different factors. For example, when the hobby became in demand in the US during the early part of 1990s, the demand for high quality coins became higher. The demand for some kinds of coins also grows as a result of marketing strategies that are regularly implemented and released by various coin dealers

There are indeed a lot of factors that help in determining the value of the coins. As a collector, you have to know what these factors are and when is the best time to add coins on your collection as well as the best time to sell and start earning from these.

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What Would Silver Buyers Accept and Purchase in Addition to Silver

When you seek out silver buyers, you have a lot of different types of people you may run into during your trades. While it goes without saying most of the time that most of the people who like to buy silver enjoy a lot of kinds of investments, there are some things that do not meld well together in even the most liberal investor's portfolio. If you phrase it correctly, you can call almost anything an investment. But that does not mean that anyone will want to buy it under most normal circumstances. The types of assets listed and discussed here might be worth considering.

One type of asset that the average silver buyer might enjoy is gold, along with other types of precious and semi-precious metals. Gold, palladium, platinum, copper and some other, lesser known metals may be valuable for traits including their color, their collectability, their potential use as trade items and their functional uses in industry. Any kind of metal that keeps well without tarnishing easily can work in the same way that silver can, albeit without silver's best and most unique properties. If you can sell silver to such individuals, you can also most likely sell them other things of the same basic nature.

In the same way, gems and some types of stones can also work well. While most stones are not as functional as metals are, they can be just as rare and even more beautiful. Painite is an exceptionally rare type of mineral that is only found a few places in the world. Diamonds and Rubies are useful in a number of different industrial processes, and thus could have tremendous trade value if the world ever came to that. If you have never seen a properly iridescent opal before, you are missing out on an object of exceptional beauty that would catch any trader's eye.

In some cases, an individual who wants to buy silver might want to also purchase fine works of art. There are some caveats to this, however. One of the most major issues that plague any deal that involves artwork is that it has to be an original by a person that most people who are not art historians would recognize. You also have to consider that liquidity is not going to be substantial for such a recognizable work, as only millionaires can afford this caliber of asset price. This does not even take into account the additional security you need to keep in place to protect such a work of art from both damage and potential theft. While a buyer of silver might also be a buyer of art, choose your market carefully.

Perhaps one of the best types of assets for a buyer of silver is coinage. While coins are technically made out of metal, they are rarely pure. In some cases, a rare alloy of two or more metals can actually result in a higher level of value due to its rarity. Nonetheless, the metal value of coinage tends to be overshadowed by the coin's value because of its beauty, rarity and collector desire.

How to Sell and Buy Silver Coins

The number of people who buy silver bullions and coins continue to increase but only a handful of people know how to get the best value for their collection. There is more to being a coin collector or a precious metal investor.

Silver coins appraise differently compared to when you buy silver bullions. Their value does not fluctuate depending on the current price of pure silver. The price depends on the age, rarity, and condition of the item.

Having a good coin dealer can help especially for someone just starting out. Make sure the coin dealer is someone you can trust. You do not want to buy silver coins only to realize too late you have been tricked into buying fake ones. Learn the tools of the trade to avoid scheming dealers.

Take extra care when you buy silver coins online. Make sure the online dealer is accredited or has the permits to make such transactions. Research for reviews. If you feel there is something off with the online trades, move on and look somewhere else. Deal only with websites you recognize.

Training yourself to spot counterfeit coins can be valuable. Luckily, even the most well-made counterfeits have noticeable errors if you look hard enough. If you buy a silver coin and you are not sure of its authenticity, check for superficial differences compared to authenticated coins. Coins with misshapen dates and dents are fakes.

If you do not see any irregularities, get a feel of the coin. Counterfeits tend to be more slick and slippery. Also, check the edges of the coins. Genuine coins are made with thin, even edges around the circumference. Fake coins either have thick edges or do not come with any at all.

If you have built a decent collection, keep them in prime condition to keep their value high. It is easy enough to clean silver coins if you take good care of it regularly. For extensive cleaning, soak the coin in lemon acid with iron nails for half an hour. If they still have dirty spots, you can use vinegar or sour milk on tissue paper and rub gently. Another alternative is to use a raw potato, rubbing the insides against the coin.

Always check the current value of silver especially if you have invested in bullions. For major investments, find an adviser who can suggest the right time to buy and sell precious metals to avoid losing a lot of money. As for coins, they are better left undisturbed for as long as possible. They can be an added source of income when you retire.

Whether you plan to collect rare coins or just buy silver bullions, doing a bit of research will go a long way. This will not just benefit you when the time has come to sell it, you might even discover you already have a collection you can be proud of.

Collectible Certified Rare Gold and Silver Coins and Bullion: Precious Metals As an Investment

Investors, concerned about the economy and preservation of wealth, are discovering the 21st century gold rush. This is partly because since 2001 the dollar has fallen over 40% and 95% since the 1950's. As the dollar declines, gold becomes a much more trusted investment because the value of gold has never been zero.

Every year, around 2,500 tons of gold is mined from the Earth but the global demand for gold far outweighs the supply, driving up your investment even more. You could own gold in the form of ETF's, commodity options or mining shares, but possession of gold coins is unique.

When you invest in certified, rare gold or silver coins, you are not just putting your faith in the value of gold itself. Part of your portfolio should be in investment grade, collectible gold coins that are in good condition and relatively scarce. That adds tremendously to the value of your gold investment - almost like having a built-in insurance policy.

These coins are certified by either the Numismatic Guaranty Corporation (NGC) or the Professional Coin Grading Service (PCGS). This means you can have greater confidence in your investment and know that it is easily liquidated when you are ready to close your position at any of the thousands of gold dealers across the country. And of course, we will buy back what we sell to you, as well.

Gold can also be used in a self-directed IRA or 401K plan. After 2008, imagine how your retirement plan might have looked if you had a percentage of it invested in gold. Diversifying your portfolio by investing in gold decreases your potential risk and could even dilute your potential rewards but if you are interested in at least preserving your wealth, you need to have a position in gold which is still yet expected to go much higher.

With gold, you have personal and private control over your investment. While "private wealth" seems a thing of the past, gold gives you that privacy. In other words, neither an IRS 1099 nor a social security number are required to own investment grade rare gold coins. No other tangible asset offers 100% privacy and portability except gems or diamonds which are not nearly as liquid as US rare gold coins.

And although there is nothing like holding a gold coin in your hand, you can't ignore the wealth preservation and growth aspects of gold as a solid and wise investment. You don't have to be among the super wealthy or extremely knowledgeable about investing in gold. It's much simpler than might think.

How to Ensure You Purchase Authentic Antique Silverware Precious Metals Price Discovery - At and Despite the Margins Gold Bullions - An Investment Option Purchase of Gold And Silver - Find The Best Deals Counterfeit Coin Detection - 4 Ways to Initially Spot a Counterfeit Coin (and Avoid Being Taken) How to Know Where to Buy Gold

Gold Investments: Reasons and Benefits You Need To Know When Investing In Gold

It is safe to say that investing in gold is the best alternative we have today with the current situation of the economy. No matter how long it takes for the process to finish, this method provides us with great dividends. Individuals are investing in gold to add financial support to their retirement. But one should ask "What kind of benefits will I get if I invested in gold?" Therefore, it is very important to have knowledge about gold investments because this will help you in the long run.

Historically, gold has been used by men for accessories and trades. Today, however, it is used as an asset that can be invested in retirement plans like IRA and 401K. Due to the fact that it has a higher value than money, it only makes sense that investing in it is a wise idea. The value of gold appreciates over time unlike other assets which tend to depreciate when the economy goes down. So what are the reasons why you should have gold investments in your IRA?

When you have an IRA, the first thing that you should do is to diversify your portfolio. Gold investments can diversify your portfolio because it provides stability. Although the price of gold had a minor dip in the past, there is an excellent chance that it won't happen again. With the current economy of the United States, it is to be expected that price of gold, as well as silver, will increase. With increasing economic crises we have today, your IRA account is of big help. Needless to say, you should invest gold in it because it is seen as a good investment. While you are at it, why don't you consider gold IRA? You can invest your funds in this account while investing in gold as well.

One good reason why you have an IRA account is your fear of the economic downfall. Investing in the stock market is good but you are only wasting your time in it. If you want to strike good fortune then gold investments is the answer to your problem. Gold will offer you great opportunities and it should help you negate the low interest rates and currency values we are having. As what is said, the value of gold cannot be affected by the economic fluctuations.

With the increasing demand for gold, the supply it has in the gold market is decreasing. This is because countries around the world with plummeting economies are buying gold reserves to save their financial system. Also during inflation, many investors and stock holders are pulling out their money and are turning their attention to gold. Therefore, if you want to invest in an asset then you should invest in precious metals like gold and silver in IRA.

These are some of the benefits that you will get with gold investments. Opting for gold IRA should not only help you invest in gold but also in other precious metals and physical assets. So if you want to have a successful retirement then you should invest in gold.

The Gold to Silver Price Ratio and the Surge in Silver Jewelry Buying

Some would say that the gold to silver price ratio is meaningless.

Others debate whether it will revert back to historic values maintained at a level mandated by law or policy, or if it will be based on actual above and below ground supply. Above ground investment grade silver is reversed, with five times more gold, while estimates indicate that nine times more silver than gold remains to be mined.

Yet where does the actual gold/silver ratio matter the most? Perhaps a look at price discovery at the margin in the jewelry markets would be illuminating since price and perception of value are always at play.

Another Look at Price and the Sticker Shock Effect

In the mind of the mainstream media, gold is expensive, even though it may be a relative bargain on an inflation adjusted basis or given the questionable value of paper money.

Few people would think twice before placing a $5 item in their shopping cart, but almost everyone would question their buying habits at a $10,000 price point.

As prices rise higher, consumers and investors tend to seek out alternatives, even if the higher priced item is still a relative bargain. From the perspective of consumption, but not investment, the price of an ounce of gold seems high to most people.

Furthermore, as gold prices head higher, jewelers have been moving towards selling lighter pieces with less gold and more silver content in an effort to reduce the "sticker shock" effect on their customers.

Gold's Price Relative to Silver's

Based solely on changes in metals prices, a $100 bracelet bought in the year 2000 would cost more than $600 today. At prices in between those two price points of $100 and $600, plenty of jewelry buyers have had second thoughts about their prospective purchases.

To continue to attract shoppers and keep demand at acceptable levels, jewelers typically lower the karat weight of gold and increase the amount of silver in the pieces they offer.

For example, a 22k gold band made of gold and silver is just as yellow but is nearly 10% less expensive than a 24k band. To a shopper, the difference between a 22k and 24k ring is typically insignificant, but to silver investors, this difference is huge.

After the fall of bimetallism and the disappearance of commodity backed paper currencies, the gold and silver ratio lost some of its former stability. Largely due to the world-wide depletion of government silver stockpiles, the ratio that was previously constrained by law became considerably more volatile,.

Recently, the gold/silver ratio has once again approached record highs since the price of silver has been depressed much further than the price of gold since April 2011.

Confirming the Gold to Silver Ratio

The retail jewelry marketplace demonstrates that the gold to silver ratio still has some fundamental backing outside of its former legally-defined levels.

Basically, when gold gets too expensive relative to silver, jewelers simply add more silver to reduce the per-item price and mitigate the resulting sticker shock to consumers. As the market for gold jewelry has cooled off since 2005, silver is quickly taking gold's place as a jewelry metal.

Should the economy rebound fully to its 2007 boom levels, an accompanying surge in consumer jewelry purchases will increase demand for silver to fill the gap in affordability left by the sky-high price of gold.

Furthermore, with silver production routinely running under the level of gold production, any change in consumer preference from gold to silver will be multiplied by the differences in available metal stock and production supplies.

With the tide turning in the jewelry market, silver investors can expect not just higher silver prices, but higher gold prices as well.