Taking The Golden Route
Investing intelligently is the first step towards building up your wealth
. You have to make each cent count, and a new way of making it count is by adding diversity through trading gold. Gold is a limited resource, and this low supply contributes to a gold coins value and charm. The gold trading sector has now assumed the form of an organized market sector, thus making it easier for the individual buyer to get involved. Different types of gold coins can be sought for financial purposes. There are gold bullion coins and rare gold coins. Rare gold coins are a collectors delight and they also provide the much needed privacy that an owner covets. This is due to no obligation of recording the purchase and sale of them by the broker/dealer, which offers adequate privacy to the buyer. Also, gold prices have risen as is evident from the following statistics. According to the New York Close gold has been on an upward sloping trend for the last 10 years, gaining over 350%.
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Some of the highly rated rare coins are the twenty dollar gold coins. These come in various forms. The Liberty Double Eagle and the Saint-Gaudens Double Eagle are two famous varieties. The Indian Head Gold coin comes in various denominations like $10, $5 and even $2.5. So there are plenty of options to choose from. A single rare gold coin can be worth hundreds of thousand of dollars, even millions. One particular specimen of the 1933 $20 Saint Gaudens sold at auction on July 30, 2002, for $6.6 million, plus the 15% buyer's fee, which brought the total cost to the buyer to $7,590,000.
Art aficionados and collectors are a growing breed. So the demand for these types of gold coins is not likely to fade away. There is no upper limit to which the prices of these gold coins can go up to as is evident from the 2002 auction. You may even purchase foreign varieties of rare gold coins. Countries with histories much more vast than USAs are literally a gold mine for these rare coins. The more limited a resource is, the more the demand will be for that resource in the coming future. An interesting fact is that rare gold coins produce significant profits even during periods when the price of gold is falling. For example, from 1988-1990, rare coins went up more than 665%, while the price of gold fell from $395 to $360 per ounce. So summing it up, you now have a way of diversifying your portfolio and venturing into a completely new form of ownership.
by: Santosh Verma