Archive for March, 2009
Learning and Fun with Collecting Coins
Numismatics– that is, the study of coins– is a very important ancillary discipline to the study of just about any human society, including our own. In the last several hundred years, studying coins has grown into a goal in itself for a lot of folks. The academic discipline remains fairly small, occupying a niche in the academic sphere, so many important contributions have actually been made by hobbyists. Coins are intriguing since they offer a couple of facets to be examined.
Initially, their worth then and now like money. When in the Third Century AD the Romans devalued their coinage, Roman economic power began to slip,roman coinage was stable in its value for centuries because of its consistent gold content.
Coins that were comprised of any gold or silver have been ‘clipped’, meaning tiny bits of the coin have been shaved off by a dishonest person in order to melt it down and make a profit.
The value of money can be associated with its history; for example Maria Theresa’s coins were well know due to their stability and quality, as well as the fact that they were beautifully artistic. Jand the obverse as well, but they tend to remain constant),and here is the second fascination. In the case of Athens it was mainly silver,the ancient Greek cities each issued their own coinage.
The American coins tend to be constant in subject, unlike the coins from Europe, though the Roosevelt dime is an obvious exception This does not, however, detract from the beauty of many early American coins which are highly prized by collectors and professionals.
Silver dollars are particularly prized, many of which are beautiful examples of the numismatic art; but let’s not forget the Buffalo nickel, good specimens of which are difficult to find. The marks indicating at which place the coin was minted; the date of issue; the subjects on the reverse,the marks indicating at which place the coin was minted; the date of issue; the subjects on the reverse. (along with the opposite, however they are inclined to stay the same). You can start gathering coins relatively low cost and easily; the joy comes with hunting down and discovering that particular coin that makes your gathering more complete.
History of the One Ounce Gold Krugerrand
The 1 Ounce Krugerrand history begins not on July 3rd, 1967 when it was first struck- not even in planning and strategy meetings held by the Chamber of Mines of South Africa (established in 1889 as a voluntary private sector organization to represent the interests of mining employers) who were its architects.
In 1884, gold was found in the “ridge of white waters” (in Afrikaans Witwatersrand), South Africa. General Joubert remarked that the gold find will “cause our land to be soaked in blood.” In this blood and conflict begins the Gold Krugerrand history. Paul Kruger was the President of the Transvaal at this time, and he was very concerned with the influx of gold hungry foreigners who flocked to the sixty mile range of east/west running hills of Witwatersrand. Johannesburg sprang up first as a shanty town, and then eventually became a thriving city. As more foreign miners arrived- they began to want a say on how things were done- for example tax rates and where the taxes were spent. The Boers were concerned about losing their independence – rightly so, as the British empire was eyeing the rich gold find. The seeds of conflict were sown.
In 1899, the British government demanded Uitlander (foreigner) rights to match those of the Boers. Realizing that the British wanted more than equal rights (Transvaal independence was at stake), Paul Kruger responded that all of the British should leave within 48 hours. This was an impasse which could not be broken via diplomatic means, and the second Boer War ranged across the country. The Boers fought hard and were able to demand some concessions at the war’s end in 1902, but the Transvaal independence was lost.
Now that the drums of war were silent, the next milestone in the timeline of Krugerrand history was the creation of the of a centralized refinery. The Transvaal Chamber of Mines created the Rand Refinery in 1920 with the express goal to refine all the gold mined in Witwatersrand. To this day, the blank every South African Gold Krugerrand is stamped on comes from the Rand refinery.
Now to assemble the essential elements of a One oz Krugerrand. First on the reverse side of the coin, we have a Springbok antelope, designed by Coert Steynberg. The antelope symbolizes South Africa. Next the Krugerrand honors the 5th President of the South African Republic, Paul Kruger with a picture on the obverse. Finally, the name itself is derived by adding Kruger’s name to the national currency- the Rand. And where did the Rand come from? Witwatersrand of course.
The Trading with the Enemy Act of 1917 coupled with the Executive Order 6102 signed by FDR effectively made it illegal for US citizens to own gold bullion at the time the Krugerrand came into being (1967). The South African government wanted to be able to sell gold to US and world investors- so they did two very clever things. One, they made it legal tender, which allowed US investors to purchase it as a foreign coin. Second, rather than list a denomination on the coin- they listed the actual gold content in the coin. So a One Ounce Gold Krugerrand contains exactly that, one full ounce of gold bullion. Krugerrands are not pure gold, for every 11 parts gold there is one part copper to provide strength. This copper content makes them heavier than their one ounce label. South Africa still had another political hurdle to overcome before widespread trade in the Krugerrand could occur for US citizens- apartheid. Until political reform ended the practice in the mid nineties, the Krugerrand was illegal to import. In spite of this prohibition, and with free trade now, the Gold Krugerrand has become the most popular bullion coin in history, with 46 million ounces in circulation. The One Ounce Gold Krugerrand history is a tale of adventure, war, and progress.
The Gold Coin Marketplace
An individual may start purchasing gold coins for any amount of reasons. Some may buy it because it is a good investment while others see the prospective for their profits to increase as gold worth increases. Even these days you will find that there is an exceedingly high demand for people who collect coins to buy those that are rare.
Irrespective of the reason an individual has for purchasing gold coins, they know that it is one of the most secure ways to invest their extra money. Merely because they know over time these coins are unlikely to lose any worth rather they are in reality going to be gain in worth.
Before acquiring any coins you need to find a honest coin dealer. If you are able to, select someone who is a member of the body called the Professional Coin Grading Service, or the Numismatic Guaranty Corporation. Unfortunately if you select to use a dealer who is not a member of these professional bodies then you are risking losing your money as they will often sell you coins which are in fact phonys.
When you find a coin dealer you will need to figure out exactly how much gold you are going to buy. This is important as the price of gold is constantly fluctuating and by knowing how much it is you have free to spend will help you to purchase at the cost at which it is currently set more easily.
Not only do you must to know how much you plan to invest in gold coins but you also need to discover what is available and which coins make the best investments. Today gold coins are ordinarily separated up into three assorted categories. Ones that are rated as common gold bullion, those that are classed as uncommon and those which are collectible.
Gold bullion “coins” are actually valued based on the amount of precious metal in them. The worth of hard to find and collectible coins changes quite often, so when placing a value on them, several aspects need to be taken into consideration. Looking at the amount of gold that is inside, how old and how special the coin is will determine how much it will cost to buy and sell these coins.
Also, when you are going to be acquiring gold coins it is important that you understand a little bit about the ranking and evaluation procedure. This will then help you gain a better understanding of the hard to find coin marketplace and allow you to spot possible bargains more easily.
Austrian Philharmonic Gold Coins – Ancient Contemporary Gold Coin
Austrian Philharmonic Gold Coins are one of the most beautiful and well crafted in the world. A gold bullion coin, these historic coins were minted in Vienna Austria, and like other coins minted in Austria’s impressive coin minting history of over 800 years, have become famous around the world as one of the most sought after and coveted of all gold bullion coins.
These 24 carat gold 99.99% pure coins are not only gorgeous in their beauty and design, but are sought after for such benefits as their reputation for being:
* The best-selling coins in the world * Struck in 99.99% fewer 24 carat gold * Perfect in mint quality * Exceptionally beautiful design of the Vienna Philharmonic Orchestra on one side and Vienna’s Golden Hall on the other * Able to offer immediate resale gold market value
According to the World Gold Council, this coin was the best selling gold bullion coin for most of the 1990s, exceptional for a coin first struck in 1989. Vienna Philharmonic Austrian gold coins contain no alloyed metals. Minted in Austria by the Austrian mint, established in 1194, this coin contains both ancient beauty as well as a potential contemporary investment well into the 21st century.
The key factors of the popularity of these Austrian gold coins are:
* Minted in one half, one quarter, and 1/10 ounce sizes * 37 mm diameter * Face value of 100 or 2000 shillings
Exceptional detail in design and construction continues to make Austrian Philharmonic gold coins one of the most popular and sought after bullion coins in the 21st century. From the exquisite craftsmanship on the obverse and reverse sides of the coin to its continued value and reputation, this Austrian gold coin will continue to be a favorite among both investors and collectors for some time to come.
The Price of Gold Is Rising: 7 Great Reasons To Invest In Gold
In March of 2008, the price of Gold Bullion per ounce hit an all-time high of $1,030.80.
On August 15th of 2008, gold hit a nine-month low of $773.
That’s a correction of 25%!
In just one month alone – from July 15th to August 19th – gold fell 20%.
However, since that time, gold has regained almost all of its losses.
Still – I know there’s a lot of gold investors out there that are probably wondering if the gold will ever be able to climb over and maintain that $1000 price level. At this point, you’re probably fed up and are thinking seriously of dumping whatever hard assets you have.
I’m going to provide you with a little bit of historical gold trivia that I hope will reassure you.
So, take a deep breath. Relax. And keep reading.
It may be comforting to know that the last great gold bull market of the 1970’s was also interrupted by similar corrections.
1. In November of 1978, gold had a 20% correction.
2. In October 1979, gold lost 13% in four days!
3. Gold had a horrendous correction in 1975, falling 50% from $200 per ounce to $100 in 1976.
At that time, everyone proclaimed that the bull market in gold was over. As gold investors well know, the price of gold continued its climb over the course of the next few years, not stopping until it hit $850 in 1980.
Okay, I know what you are thinking.
That was then. This is now.
Ah, but even in the current bull market, gold has had corrections similar to what we are experiencing now.
1. In the summer of 2006, gold fell 21%.
2. But by the end of 2007, gold had risen 45%.
The point I’m trying to make is that corrections, painful as they are, are normal in bull markets.
Now that we’ve taken a hard look at the statistics, we need to determine if the fundamentals for buying gold bullion are still intact.
Let’s go back to March 2008 when gold had climbed over $1000 an ounce.
You were pretty excited, huh?
Now, ask yourself: what was causing the price of gold to rise?
1. The dollar had long-term, fundemental problems
2. Banks were failing
3. Mortgage lenders were facing insolvency
4. Housing prices were falling
5. The economy was on the brink of recession
6. Oil faced a long-term supply shortage
7. Unemployment was rising
Okay, now ask yourself: have any of the 7 elements listed above changed? Have things improved? Think about it. If the gold bull market were over, we’d have:
1. Healthy banks
2. Stable or rising housing prices
3. A new, major oil discovery
4. Increasing job creation
5. A falling unemployment rate
6. A fiscally responsible government
7. A strong dollar due to a balanced budget and a shrinking deficit
I don’t see any of the above happening anytime soon. Do you?
In conclusion, I would say it is safe to assume that the fundamental reasons for owning gold bullion, as a safe-haven investment, are still valid. I would further venture to say that gold – at $900 per ounce – is the buying opportunity of a lifetime!
Two Compelling Reasons Why You Should Buy Gold Bullion
At this moment, there are two very compelling reasons why you should be investing in gold bullion coins or bars.
1. To protect your money from financial catastrophe. 2. To protect your money from the debasement of the dollar.
Let’s take a look at reason number one – buying gold bullion as a way to protect your money from some sort of terrible financial catastrophe, such as a bank failure, war, act of terrorism, etc.
They seem to be everywhere these days. Those doomsayers who like to promote owning gold bullion as an insurance policy against the collapse of the global financial system. A few years ago, they were dismissed as extremists, crazy, and delusional.
Yet after the gut wrenching turmoil we’ve seen in the financial and credit markets over the past year, their doom and gloom scenarios don’t seem so unrealistic any more. An investor who was wise enough to allocate ten percent of his portfolio in gold bullion is probably sleeping pretty well these days.
Okay, now let’s look at the other powerful reason why you should be buying gold bullion – as a safeguard against the debasement of the dollar.
Right now, the government is cranking their printing presses into high gear, churning out an ever great quantity of paper dollars. In the Federal Reserve’s book, deflation must be avoided at all costs and no debt is too great to be monetized in order to keep the faltering financial system going.
A central bank simply can’t participate in unrestrained money printing like this without the dollar losing value. If you own dollar-denominated assets instead of gold bullion, your value of your wealth is going to slowly deminish.
Whatever the eventual outcome from the current credit crisis turns out to be, total financial catastrophe or complete devaluation of the dollar, the investor who owns gold bullion will be protected.
The Essentials Of Purchasing Gold Coins
There are assorted reasons why a person would choose to begin buying gold coins. An explanation is they are seen as smart investments because their worth can be increased, so people are more inclined to purchase them. Even these days, you will find that coin collectors are highly driven to pay whatever the marketplace demands to acquire uncommon coins.
People are conscious that purchasing gold coins is a safe and trusted way to make an investment with their surplus funds. Simply because they know over time these coins are unlikely to lose any value rather they are really going to be gain in value.
When it comes to acquiring any kind of coins the initial thing you should be doing is looking for a reputable and honest dealer. If you can select one who is a member of the Numismatic Guaranty Corporation or the Professional Coin Grading Service A dealer who is not a member of these professional bodies will often sell you phony coins.
Once you have located your coin dealer you’ll next have to determine the amount of gold you wish to purchase. Knowing the price of gold, which fluctuates constantly, will help you to buy at the best cost.
You need know how much cash to invest and the best gold coins that are free. Presently gold coins are usually divided into a maximum of three various groups. Standard gold bullion coins are collectible and are classified as hard to come by.
You will realize that standard gold bullion coins are really bought and sold for the sum of gold that’s in them. The value of uncommon and collectible coins changes quite often, so when placing a value on them, several facets need to be taken into consideration. Considering the amount of gold that is inside, how old and how special the coin is will decide how much it will cost to buy and sell these coins.
Also, when you are going to be acquiring gold coins it is essential that you comprehend a little bit about the grading and evaluation procedure. This will then help you achieve a better comprehension of the hard to come by coin market and allow you to spot possible bargains more easily.
Diversify With The Ten Dollar Gold Eagle Coin
Have you considered adding the Ten Dollar Gold Eagle Coin to your portfolio? With the current decline in the economy, now is the best time ever to invest in this piece. While the dollar has lost value in recent years, gold has increased in price and value. This is just one very important reason why you should think about making this gold coin a part of your bullion portfolio.
Adding gold and silver coins to your collection is a safe-haven investment. Gold doesn’t corrode, rust, tarnish or dull with age. In fact, it is one purchase you can make that is certain to make you more financially secure in the future. Recently, there has been an unprecedented demand for gold and silver in the United States.
There are few investments these days that are virtually risk free, but collecting gold coins is an exception. Putting together a coin portfolio is one of the safest and most risk free ways you can invest your savings. Of course, the value of your gold coins depend on the uniqueness and rarity of your pieces.
If you are a collector you probably know that in 1933 gold coins ceased to be minted as an attempt to improve the economy during the depression. Most coins were melted, which is the reason for the scarcity and rarity of some of these coins. Why should you include the ten dollar gold eagle coin? It has maintained its worth over a long period of time, and will continue to appreciate in value.
Over time, you will accrue a very valuable portfolio by adding unique and rare coins to your collection. You can actually secure your future by having a good collection of gold and silver coins. Usually, the value will only increase, and your portfolio can be sold at a huge profit. This is the perfect way to insure that you will have a happy, financially stress-free retirement.
Gold is extremely stable in value, and since gold coins are no longer produced it makes sense to secure your pieces as soon as possible. This lets you avoid either paying too high of a price later on, or not being able to get your hands on one at all. No portfolio is truly complete without the ten dollar gold eagle coin – add this must have to your collection!
Polish Gold Coins – Protect Your Wealth With Gold From Poland
If you want to diversify your gold bullion portfolio, Polish Gold Coins are a good choice. Gold coins tend to accumulate more numismatic value over time than bars. This is probably because most are struck with the date. Another reason for diversifying into Polish gold coins is that older coins will increase in numismatic value provided that they are kept in good condition.
The majority of folks who truly invest money and time in their hobby own coins from a variety of different countries. Not only does this add value to your collection, it also adds interest, especially if you have coins that are scarce or hard to find. Collecting coins can be a very big asset to your financial status.
Established collectors know that investing in coins is a step toward protecting their future. More than any other market, the gold market tends to be stable and hold its value. While the economy continues to decline, the price of gold continues to increase. Building your portfolio now will give you a secure financial stance in the future.
Why should you invest in Polish Gold coins? Their value is substantial. The stock market is in the ditch, and returns on savings accounts are low. This is the perfect time for you to put your money in collectibles such as gold coins. It’s simply the smartest way to protect your financial future from the devastation our economy is causing many people.
An advantage of collecting gold coins is the ability to plan now to protect yourself, no matter what happens to the economy in the future. There aren’t many avenues you can choose that give you a sort of “safety net” like this hobby does. Most markets suffer when the economy takes a tumble, but you can be relatively assured that gold will hold its value and most likely increase.
Maybe your portfolio is filled with a diverse collection of gold coins. If not, you should consider investing in coins from other countries, as well as the United States. Adding unique and hard to find coins to your collection will add an increased financial value in years to come. Think about adding Polish Gold coins to your portfolio – a very smart investment on your part!
American Eagle Gold Proof Sets – A Golden Collection To Treasure
American Eagle Gold Proof Sets are perfect for the gold bullion collector who desires to own a beautiful keepsake version of each denomination of the American Eagle Gold Bullion coin. Each one of these gorgeous American Eagle Gold Bullion Proof 4 Coin Sets contain a 1 ounce, 1/2 ounce, 1/4 ounce, and a 1/10th ounce proof coin.
Just the Facts
(1.) Each coin in the American Eagle Gold Bullion Proof Four Coin Set is considered to be legal tender.
(2). Each coin consists of 91.67% gold (22 karat).
(3.) The content and weight of each gold proof coin is actually backed by the United States Government.
(4.) Each American Eagle Gold Proof Set is available in limited mintage. The 2008 Gold Eagle Proof Set has a production limit of just 35,000.
(5.) The four coins in each proof set has a different face value, measurement, gold content, and weight.
The Design
The American Eagle gold coin is a true masterpiece. The front of the coin, or the obverse, showcases a rendering of Augustus Saint-Gaudens’ tall, full figure of Libery, complete with long, free-flowing hair. In her right hand, Liberty is carrying a torch and in her left, an olive branch. The design featured on the back of the coin, or the reverse, was created by sculptor Miley Busiek. Here, a male eagle can be seen carrying an olive branch and flying high above a female eagle and her hatchlings in their nest.
Each Coin is Different
The one (1) oz. coin has a fifty dollar face value. It measures 1.287 inches in diameter, contains one troy ounce of gold and has a weight of 1.0909 troy ounces.
The one-half () oz. coin has a twenty-five dollar face value. It measures 1.063 inches in diameter, contains 0.5000troy ounces of gold and has a weight of 0.5455 troy ounces.
The one-quarter () oz. coin has a ten dollar face value. It measures 0.866 inches in diameter, contains 0.2500 troy ounces of gold and has a weight of 0.2727 troy ounces.
The one-tenth (1/10th) oz. coin has a five dollar face value. It measures 0.650 inches in diameter, contains 0.1000 troy ounces of gold and has a weight of 0.1091 troy ounces
Why Buy Proof
I believe it is worth paying the extra cost to invest in the proof version as opposed to the regular bullion coin. Proof coins will increase in value, over the general rise in the price of gold, as they have a smaller circulation and special appeal for coin collectors. The American Eagle Gold Proof is an impressive coin to behold. The special processing technique used to make the proof creates a coin that has a very attractive, beautiful, imposing look.
Where To Buy
You can choose to purchase the 2008 American Eagle Gold Proof Set from the U.S. Mint. Collectors seeking to add the previous dated sets to their collection will have to do a bit of searching.
Many of the older, hard-to-find sets can be found for sale online, via the online auction site, eBay. Ebay is a very cost effective and convenient way of obtaining proof sets. Before purchasing any American Eagle Gold Proof Set, make sure the seller is a reputable one and has a history of positive feedback.