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Why Buy Gold?
The first reason is simply to OWN gold. Gold is a unique asset class. Gold does not depend on any corporation, bank, or government to redeem it's value in currency, U.S. Dollars or otherwise. Unlike real estate, stocks, mutual funds, and even CD's and savings accounts, there are no annual taxes, management fees, or penalties associated with owning gold. ITM Trading deals only in physical, tangible that will arrive at your doorstep, business, or Insured IRA Depository. Men and women wise in the ways of finances and currencies understand the value and surety in holding a portion of their wealth in hard assets.
At ITM Trading we carry a focused selection of gold bullion coins and bars with the investment minded buyer in mind. Our products are some of the most popular gold options available in the market today which should make your decision an easy process. Our inventory typically consists of gold eagles, gold maple leafs, gold Krugerrands, as wells as various selections of gold bars.
Before considering purchasing collectible numismatic coins, it is important to do extensive research first, not only so you can have an in depth knowledge around these coins but also to ensure that they are coins that you can afford, as they tend to be quite expensive. Collectible and rare coins do not all fall on the same pricing index, which makes it more difficult to determine the value of the coin.
The value of bullion coins can be determined easily due to their value being based on their metal content. Simply take the weight in ounces and multiply it by the current spot price and then add a small mark up.
Determining the dollar value on collector coins is not as easy and starting with the spot price is just scratching the surface because there are many other factors that come into play when determining the value of a true collector’s coin.
Historic Value: The coins history plays a large role in the value of the coin. One example would be the Liberty Double Eagle gold coin, which is recognized by many as the most historical coin produced by the United States. Its historical significance traces back to the California Gold Rush of the 1840s. The Liberty Double Eagle is a timeless piece of American history and because of its history it is more valuable.
Aesthetic Value: Another factor that plays a significant role in determining the value of a coin is its aesthetic beauty. The Chinese Silver Panda is very popular because of its beautiful design on the obverse side of the coin and its intricate design on the reverse side. The coins appearance is a big deal in the numismatic world because collectors like to show off their coins.
Grade: The coins grade also plays a large role in the value of the coin. Often time’s coins are examined by professional grading companies and given a grade based on the condition of the coin. The grades range from 1-70, 70 being in supreme condition. The higher the grade of the coin the more valuable it is.
Mint Year: What year the coin was produced is also very important in determining the value of the coin. If a coin of a certain year has a limited mintage and is scarcer than other coins or that particular mint year is less circulated it can increase the value of the coin.
These factors can help you to determine a collectible coins value, however, it is important to have an expert help you with this, to ensure complete accuracy.
Three Ways to Invest In Gold
The first way you can invest in gold is through physical gold. Physical gold can be purchased either in the form of coins, bars, ingots or rounds. It maintains its value no matter how well the world’s leading currencies are performing. Physical gold also negatively correlates with the strength of the U.S. dollar meaning that when the dollar is down in value gold tends to be up in value.
Physical gold possesses many strengths. It is a tangible asset that has intrinsic value, is an excellent hedge of protection against the volatility of paper stocks, and is great at balancing the performance of portfolios. Gold also offers protection from bank failures and is a private investment that requires a minimal amount of reporting. It is also highly liquid, is a form of legal tender, and has nominal spreads. Some things to consider before investing in physical gold is a storage plan for your metals that is safe and secure and you must purchase your gold from a reputable dealer to ensure quality and security.
The second way you can invest in gold is through Exchange Traded Funds (ETFs). An exchange traded fund is an investment fund traded on stock exchanges, much like stocks. They perform based on gold market value and are structured like an index fund. Exchange Traded Funds are an easy way to trade on gold prices, can be used in larger accounts for the purpose of diversifying, they can be bought and sold quickly, and are an excellent choice for short investment horizons. Things to consider with an ETF purchase are they come with higher transaction fees, because they are paper they have no intrinsic value, ETFs offer no protection from market volatility, there is a minimal amount of accountability, and they require a high level of reporting.
The third option is mining shares. By investing in mining shares you are purchasing a share of mining company. It allows you to invest in gold by having partial ownership in a company that mines the precious metal. Mining shares come with a high level of risk but also a high level of potential rewards. Mining shares can be bought and sold quickly. Things to consider is that they carry no inherent value, they are vulnerable to exploration risks and geological and metrological challenges and are susceptible to leadership or human resources issues.
In order to maximize your wealth protection and enhance the performance of your other investments, you will want to invest in tangible assets. If you can’t have full possession of your investment, you don’t own it.
Remember: If you don't have physcial gold in your portfolio, you don't have anything like real gold in your portfolio.
There are several reasons people purchase gold. Some hope to make a quick profit on upward swings, others find comfort in the long term gains gold has posted, and many buy for the privacy and store of value that gold gives. A growing number of people around the world are keeping some coins on hand in case of another banking or currency crisis, and they purchase gold coins specifically for this reason. Whatever the reason or reasons you decide to purchase gold may be, let ITM Trading help you find the right metals, coins, and strategy to grow your portfolio and achieve your goals.
ITM Trading Can Make The Complexities Simple
Strategy is key, and the precious metals market can be complex. The professionals at ITM Trading can answer your questions about the differences between Rare Gold Coins and Gold Bullion, and how the U.S. Government and the IRS regulate them differently. The analysts at ITM Trading are constantly fine tuning their market strategies and placing graded rare coins as well as bullion into the hands of their clients to grow and secure their financial futures. Let us put the perfect coins for your financial needs in your hands.
Take solace and comfort in knowing that for whatever reason you have chosen to own gold today, you will have all of the benefits of gold ownership protecting your portfolio available to you down the road tomorrow.