What is Bullion?
Bullion is the highest quality coins that can also be used for investment purposes. They are mostly issued by the government but sometimes by private institutions. These coins are mostly made of precious metals that are at least ninety percent pure. The bullion should have the amount of pure metal on it, as well as the agency that made the coin. You will know that the coin is a real bullion coin when it includes this information.
You can buy new bullion coins directly from the government or the agency that mints them. They usually have a limited run of being made, but then you can buy them from a secondary market such as coin dealers or private individuals. Check out reviews like https://investingingold.com/american-bullion-review/ before you buy. There are many popular ones to buy such as the American Gold Eagle, South African Krugerrand, and the Canadian Maple. There are other popular ones that are valuable, you just need to do a little research to see what you can find.
Bullion often are hedges against inflation, bad economic times, and bad stock market times. The bullion coins will still hold their value when paper stocks are losing their value. This is one of the biggest reasons that people buy bullion coins as an investment. You will want to be careful when you are buying bullion as an investment, make sure that the coins you are buying are really worth what you are paying.
Numismatic Vs. Bullion Coins
Numismatic coins are simply collectible ones that have some value other than their melt value. They might be old, rare, or otherwise valuable coins to collectors only. They are not always good for investment purposes because they are not always ninety percent or more pure. Some coins are worth more than their stated value due to their rareness or collectability of the coin. For example, if the coin is in perfect condition, or conversely, if the coin has some rare imperfection the coin can be worth more. You must be careful with numismatic coins because their price can go up depending on supply and demand. Usually, bullion coins will retain the value at which you bought them.
Numismatic coins can be those with a misprint on them, or they could be hundreds of years old. Usually, when you buy a numismatic coin you are not looking for the resale value, you are looking at what you are willing to pay for a collectible coin. These are harder to predict the market value of because it can vary depending on who wants the coin and how many of that coins are available. You can check out sites like this to see the value of numismatic coins. It can help you to make sure that you are not paying too much.
Buying Bullion Coins
The biggest reason that people buy bullion coins is that they hold their value even in volatile markets. This is unlike stocks and bonds and other paper investments that can lose value over time. With bullion coins, you might have to wait a little bit before they are worth more than what you paid for them. This is just how that market works, but when they do appreciate, the value stays the same for a while. That is why many people hold onto bullion coins for an extended amount of time.
You must make sure that you buy bullion from a reputable dealer because there are many fraudulent people trying to sell you fake coins. You can always trust the U.S. Mint or the Federal Trade Commission to buy the real thing. You can also safely buy from licensed dealers who have been established in the business. You can always check your attorney general’s office or the Better Business Bureau to find reputable dealers.
Selling Bullion Coins
You must be just as careful selling your bullion coins because scammers exist in this market, as well. You need to know who you are selling to and make sure they are legitimate buyers. It would probably be best to sell to licensed dealers. You will also want to wait until you can make a decent profit before you sell your bullion coins because you want to make money. Most people sell their bullion coins when their paper investments are not doing very well. You can check out this site to make sure that you are selling for the proper amount: https://www.coinflation.com/. This site has daily values of bullion coins, as well as other precious metals.
Make sure that you watch how people are paying for your bullion coins, as well. Some people will buy your coins with a credit card and then tell their credit card company that they never received the coin. They will then do a chargeback and you will not receive any money for the coin. It is probably best if you ask for cash payments only to protect yourself from this kind of scam.
You need to be careful when buying or selling your bullion coins. Do some research before you buy or sell. Know what these are worth and ask for the going price. Be wary of people who want to buy your coins for way more than the going price. Also, be very careful when people are trying to sell you bullion coins for way under the going price. While you may be getting a good price in both instances, it is more likely that you will be the victim of a scam.
Unfortunately, there are more people in the world who want to take advantage of you. There are not enough honest people out there that you want to be fair to you. You need to watch out for yourself and do the research that will help you to not be a victim of a scam. You do not want to be taken advantage of and lose a lot of money. You are trying to earn money, not lose it.