Wednesday, July 11, 2012

Investing In American Gold Eagle Coins

Investing in the American eagle gold coin is a good way to hedge against a declining dollar. These coins can provide the stability, liquidity and diversity you need in these financially troubling times. For investors wanting to add precious metals to their portfolio these coins are a great start.

Since the value often moves independently of stocks and bonds,. the coins consistently hold their value, no matter how volatile the financial situation is.

These coins were first authorized for creation by Congress in 1985 and the first minting started in 1986.with four different sizes, 1 oz., 1/2 oz., 1/4 oz., and 1/10 oz. However it is better to buy the 1 oz coins due to the smaller coins carrying a higher premiums above spot prices.

Only gold bullion mined in the United States can be used in these coins. These are America’s only official investment grade gold bullion whose weight, purity, and content are guaranteed by the US Government and they are accepted all over the world in major investment markets.

Because they are the number one gold bullion coins in the world, you can easily buy them. They are also easily converted into cash at most coin and precious metal dealers because of their government backing and their recognition worldwide.

The price of the American Eagle Gold coin is determined by the market price of gold at the time of sale or purchase. You don't purchase Bullion coins from the mint, you purchase them from an authorized dealer, who sells them at a price above the price of gold.

You can legally purchase gold bullion through an IRA account, but you are going to have to taxes on it if you plan on holding it as an asset. You would be better off placing the coins in a safety deposit box. Paul Mladjenovic, author of "Precious Metals Investing For Dummies", says you should hold them at least a minimum of three years. The coins should also be insured for their full value.

If you're looking for a good safe invest that can withstand the threat of inflation the American Eagle Gold coin is a good bet. And that says it all.