Scrooge McDuck - Gold Investor

Are you thinking about investing in gold. Great! But STOP and don’t go any further until you read our top 10 gold coins investment questions. We’ve answered all of the most important questions you need to consider before investing in gold, gold bullion or gold coins. If you have any more questions please comment below!

• #1 – You hear gold is a good “hedge” or “insurance” what does this mean?
• #2 – What type or kind of gold should you buy?
• #3 – When should you buy?
• #4 – Shouldn’t you just wait to buy gold, when it becomes necessary?
• #5 –  How much should gold should you own?
• #6 – What is the typical gold investor like?
• #7 – Who or where should you buy gold from?
• #8 – If the time comes to sell, where do you sell your gold?
• #9 – What is the biggest mistake gold investors make?
• #10 – Should you invest in gold stocks?

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I was paroozing the web the other night and stumbled upon a short, old article,  entitled: “Gold Coins Bad Investment.” Intrigued, I read on. To paraphrase the article here were the main points:

• Large Transaction Costs
• Storage
• Sensibility

Gold Large Transaction Costs? – Although it may be true that there are transaction costs (including costs to ship the gold if you require) consider that for most investments you’ll have brokerage fees closing costs, etc.

Storing Gold – I was thinking about tying this into the first explanation above, but storage is a moot point. Gold can be safely, permenantly, and inexpensively stored in your local bank’s safe deposit box, or you can opt to buy a safe. Additionally, many distributors or sellers of gold have programs to store the gold until you need it.

Gold’s Sensibility & Convenience – The author of the article notes that there is an ETF (exchange traded fund) by the name of GLD which tracks with the price of gold (and like the price of gold has sky-rocketed since the first signs of economic collapse in 2005). Although an ETF is great, as one reader notes, it doesn’t offer anonymity (you can purchase and store gold securely) and if the entire market or system tanks there could be wide-spread effects on the ability for you to pull out of an ETF.

I highly recommend checking out the movement of gold via the Google Finance website. Gold has more than doubled since 2005!

The $20 St. Gauden Double (one of our Certified Gold Coins) is one of the most beautiful coins ever created. The coins, minted from 1907 thru 1933 were originally created by President Theodore Roosevelt. At the turn of the 20th Century, Teddy Roosevelt was on a personal mission to beautify the country’s coins. He succeeded. Roosevelt commissioned Augustus St. Gaudens, one of America’s top designers to develop the largest value gold coin available at the time.

The Twenty Dollar gold piece (pictured at the right), which is loved the world over by gold enthusiasts, collectors, and investors alike, is also known as the Double Eagle. It is typically purchased as an investment device because of its privacy and the guarantee that the United States government cannot go back and make anymore of these coins.

Unlike typically gold coins (more newly minted coins), gold bullion, or even exchange traded funds based on gold (like GLD) certified gold coins have a limited mintage meaning the value of these gold coins can rise faster and independently of the gold price itself. I$20 Dollar gold piece dated 1933 was valued at the world record price of $7,590,000 in July of 2002.

For household investors interested in incorporating this coin into their gold strategy, coins that are more common dated can be purchased currently in the $900 to $1500 price range. These coins were minted from 1907 through 1933. They provide a hedge against uncertainty and are a great way to get started in the gold market today. This coin was graded MS 65.