Investing in Gold and Silver Bullion and Coins

Bullion coins are typically used by an investor as a way to store cash reserves and make returns year after year. If you’re considering investing in gold and silver bullion, there are a few things you should consider before taking the leap.

Bullion and Collector Coins

If you’re investing in bullion or coins, you should be familiar with the distinction between the two. Bullion coin values usually fluctuate based on the current price of a commodity. Rare coins can carry a hefty premium and are often preferred by avid collectors and investors.

Coin Dealers and Staying Informed

If you don’t know the difference between all the variations of silver and gold coins available then you should make sure to develop a relationship with a reputable coin dealer.

Jeffery Bernberg, the President of the Professional Numismatists Guild (PNG), has said, “To make an informed purchase of gold, silver or platinum, investors need to be aware of three crucial marketplace factors: the actual cost per ounce of the precious metals; the bullion value versus any collector value of the coin; and timely delivery of the merchandise” 


Investors should know that bullion coins often trade at a premium over the regular commodity stock price. This is because they’re minted by governments, which charge a fee for fabrication. When investing in gold and silver you should always stay on top of the current market price.


Delivery varies based on your supplier, but usually you can expect your order within ten to fourteen days of purchase. It’s possible that a mint delivery problem could delay an order, but the purchaser should inform you if that’s expected.

Price vs. Value

The price of a coin is typically the amount it would sell for in an open marketplace. Price is also referred to as retail price. Experts recommend purchasing a price guide to coins as a handy reference book.

The value of a coin is determined by demand mainly. If you’re selling your coins when the demand is high, you usually can expect to get a lower price. That’s assuming that the amount of that particular commodity available for either scrap or raw extraction isn’t low.

Price and value are determined by various factors including mintage, demand; melt value, grade, and dealer stock. It’s important for you as an investor to understand the variables used to grade precious metal coins when investing in gold and silver.


If you have a decent credit rating, you can elect to finance your precious metal coin, or bullion purchases and begin to invest in gold and silver without a huge amount of capital to work with. Some companies offer small down payments in the area of twenty-five percent in order to make a purchase this way.

Usually your payment for precious metals is initiated the day of your purchase using a bank wire. Upon the completion of processing, your coin or bullion delivery will commence. If you decide to purchase through a third party, you may be asked for legal documents that authorize you to make the purchase.

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