Greener Pastures
Categories: Finance

Investing in Bullion and buying Canadian Gold

In case you are planning on to buy gold Canada coin, the consumer protection agency of the nation, FTC or Federal Trade Commission says that the best bet is to look for your options and become smart.  If you are uninformed it might have serious consequences.

Bullion coins are actually a bulk quantity of precious metal that is assessed by weight. It is typically cast as bars or ingots. It is sold by the major dealers and banks. You will also be able to buy bullion as coins.

buy gold Canada

Bullion coins are known to be minted from the precious metals, generally gold or silver and used for investment purpose from the major banks, brokerage firms, coin dealers, and precious metal dealers.  The value of these is based on the silver or gold bullion content. The price of these fluctuates on a daily basis depending on the silver and gold price in the world market.

The U.S. mint is producing silver and gold bullion coins since 1986 and it guarantees their precious metal concentrate. The mint creates two kinds of bullion coins.

  • Proof bullion coins are specially minted for the collectors and are generally sold in a protective display case by the mint, directly.
  • The uncirculated bullion coins that have been minted for investment and are sold to a limited number of authorized byers based on the present market price for precious metal along with the negligible premium that is charged by the mint.

Foreign government is also known to mint coins. However, they might not be of same standards are U.S. coins, Moreover, they are not guaranteed by the U.S. government. The value of the foreign bullion coins actually depends on the melt value of the coins. This is the basic intrinsic value of the coin if it had been melted and sold. The condition of the bullion coin is not the most relevant factor when it comes to determining the price.

Investigate Prior to Investing

Investing in bullion coins can be a significant decision.  In case you are thinking about it, you have to think about the melt value of the coin.

gold bullion

  • Make sure that you ask for the melt value of the coin. The melt value for all bullion coins and the collectible coins is extensively available.
  • You have to consult with a well-known financial advisor that you trust and specialize in investment knowledge. Also, talk to other investors.
  • It is necessary to shop around. A majority of the banks offer Canada gold bullion coins at a lower markup than the dealers.  You can also enter the name of the coin into the online search engine for comparing the prices from all the other dealers.
  • Take the additional cost related with the investment into account. You might want to buy safe deposit box or insurance. This cost is going to cut into your investment potential.
  • Be careful of buying Gold Canada coins which are not going to be delivered to you instead to a secured facility by the third party or the seller. If you purchase metals without taking delivery, you might face the risk of metal not existing, is not of proper quality, or rightly insured.
  • Walk away from the sales pitches which maximizes the sales and risk representative who claim that written risk disclosures are actually formalities which are required by the government. Thus, it is not necessary. Ask the sales representative about the risk of the investment.