http://www.deathandtaxesinc.com/coin-good/
Good and Bad Ways to Buy Gold
Gold is going higher! The Dollar will soon be worthless! Every other television commercial seems to scream that gold – and gold alone – will secure your financial future. Maybe the warnings are sound. At the very least, gold represents a diversification from the stock, bond and real estate holdings found in a typical portfolio.
But what’s a would-be gold owner to do? Buy a gold coin on EBay? Open a commodity account to trade gold futures? Or call one of the TV pitchmen? Is counterfeiting a possibility?
What could possibly go wrong?
Unfortunately, the benefits of buying gold sometimes drown out the potential pitfalls for an inexperienced buyer. Gold can be purchased in a number of forms – some of which are more or less affordable and appropriate for a given investor. Brokers and salespeople tend to push whatever they have and gloss over alternative forms of ownership. Before you jump into gold or any other precious metal, be sure you understand your alternatives.
Gold Ingots or Coins
Good: Coins are widely recognized as being valuable because people are used to non-gold coins. Ingots – little bars of gold – are also somewhat familiar and therefore, freely exchangeable. Pure gold doesn’t corrode and is easily stored/concealed. And possession is key compared to gold ownership represented by a piece of paper.
Bad: When buying physical gold, you’re charged more than the exact, current market price. How much more depends on how much you buy and who you buy it from – so shop. And when some TV commercials and their salespeople tell you there is “no counterparty risk”, ask them about counterfeiting and clipping – shaving away tiny quantities of metal. As gold becomes more valuable, the incentive to defraud grows.
Collectible Coins
Good: Advocates claim that collectible or numismatic gold coins are less likely to be confiscated by the government in times of economic emergency. After all, they were exempted from President Roosevelt’s 1933 gold nationalization.
Bad: Collectible value can be difficult to determine. Condition and rarity are key to collectibles, unlike non-collectible coins and ingots. If a coin is “unique” its value lies completely in the eye of the beholder. You may be sold on the idea that a coin is rare, shell out big bucks, and then learn that it is neither rare nor in demand. Oh, and collectibles can be counterfeited and clipped, too.
Gold Stocks
Good: If a company mines or refines gold, it must own gold. As the price of gold rises, the stock in a gold company should rise along with it. Gold stocks are easy to buy and presumably run by managers who are experienced in their business. Let them worry about costs and storage.
Bad: Owning a stock certificate doesn’t mean that you own any gold. Company managers may or may not be capable of getting gold out of the ground profitably. And while you can presume professional honesty and competence, consider the alternative possibility: Enron. Madoff. WorldCom.
Futures
Good: Commodity futures permit the use of leverage: you only have to put up about 10 percent of gold’s value to “own” it. Thus, you can own more gold, faster – and profit more if the price goes higher. Storage, transport and counterparty risk are all someone else’s problem. Futures prices track the cash market almost perfectly.
Bad: The futures markets are designed as price risk management tools for owners of commodities, not vehicles for taking delivery of physical gold. Therefore they constitute another form of “paper” and very temporary ownership. And the same leverage that permits quick profits exposes you to losses that are just as quick. You possess no metal – and are subject to margin calls.
And there are other forms of paper gold. A gold Exchange Traded Fund (ETF) can be purchased like a stock, without the dangerous leverage of futures – but also without possession of the metal. Or you can purchase physical gold, receive a certificate of ownership and pay to have it stored in a secure location. Similarly, you can purchase bullion in an IRA account to shelter any profit from taxes. Again, you pay for storage and don’t possess the gold.
Bottom line: Leave leverage and collectibles to the pros. Possession, price and any ongoing storage costs are key. There are always costs over and above the cost of the metal itself and no form of ownership is best for everyone. Buy gold – but only from a trusted seller.
About the Author
Nick Flamel is a longtime risk management consultant. He is also the proprietor of http://www.GoldInformationCenter.com, a website that promotes gold as the ultimate inflation hedge. There you can find further details on how to use gold as a hedge and how to generate income from any gold you may own.
Le Coin Perdu (A Good Year)—Marc Streitenfeld
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1915-P – Buffalo Nickel-Good/VG Coin with Full Date for Set- Nice Early Bison $4.88 |
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1864 Two Cent Piece A GOOD Coin $5.51 |
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1865 Two Cent Piece A GOOD Coin $5.51 |
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1868 Two Cent Piece A VERY GOOD Coin $7.75 |
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HIGHLY RECOGNIZABLE OLD US JUNK SILVER COINS 8 oz. LOT pre-1965, good variety $174.95 |
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1920 Buffalo Nickel “An About Good Coin” FREE SHIPPING $0.93 |
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NICE!!! 1937 Buffalo Nickel “A Good Coin” FREE SHIPPING $0.93 |
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1853 P HALF SILVER DIME TYPE COIN GOOD 208C $12.00 |
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1864 TWO CENT PIECE TYPE COIN GOOD 206C $14.00 |
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INDIA – GANDHI BIRTH CENTENARY ONE RUPEE COIN – GOOD CONDITION – VERY RARE $0.99 |
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USA american Flying Eagle one cent coin dated 1857 good condition coin $140.49 |
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10 – Nice World Coins All In Good cond.#74 $1.99 |
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1864 Copper/Nickel Indian Head/Oak Wreath Cent GOOD Grade Coin for your Set! $27.95 |
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1866 Shield Nickel with Rays GOOD Grade Coin for your Collection $38.00 |
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1900-O Barber Silver Half Dollar GOOD Grade Coin for your Collection $26.95 |
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10 – Nice World Coins All In Good cond.#76 $1.99 |
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1935 S Good Buffalo Nickel US Coin #10307103-10 $1.92 |
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OVER 5 POUNDS lbs FOREIGN COINS BULK NO CULL GOOD MIX $29.95 |
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1894 O Morgan Silver Dollar A VERY GOOD Coin $43.22 |
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★1835 EAST INDIA COMPANY 1/2 ANNA COIN,GOOD GRADE★/HN-1 $4.12 |
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1857 One Penny Bank Token Coin Good Grade UPPER CANADA $8.69 |
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1901 S Morgan Silver Dollar A VERY GOOD Coin $22.22 |
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Coin #p2766 – 1898 Indian Head Cent – GOOD FILLER COIN $0.99 |
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1902 Morgan Silver Dollar A VERY GOOD Coin $26.00 |
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1902 S Morgan Silver Dollar A VERY GOOD Coin $49.00 |
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GOOD FOR 5 CENT IN TRADE COIN-ALUMINUM = 1812C $12.99 |
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USA SEATED LIBERTY HALF DOLLAR 1871 S GOOD SILVER COIN $23.99 |
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2- VINTAGE SEATED LIBERTY HALF DOLLAR COINS 1858-O EXTRA FINE, 1858-O VERY GOOD* $180.00 |
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1865~~INDIANHEAD CENT GOOD++BETTER DATE COIN $8.49 |
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1865~~INDIANHEAD CENT GOOD~~BETTER DATE COIN $8.49 |
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1875~~INDIANHEAD CENT GOOD~~BETTER DATE COIN $19.95 |
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1967 Kennedy Half Dollar 3 coin lot 1966 1967X2 uncleaned, nice rims GOOD cond $35.00 |
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US Washington Quarter 1932 S Coin Good Condition NICE SCARCE KEY DATE $54.95 |
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GOOD FOR 25c IN TRADE TOKEN RENVILLE MN MINNESOTA BOTTGE & HASSINGER COIN $9.99 |
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1996 Silver Maple Leaf coin, 1 oz .9999, 2nd rarest, very good condition Airtite $65.00 |
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Vintage 1970′s Shell “Mr. President” James Monroe Coin in Good Condition $1.99 |
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Caught Doing Good Coin $1.05 |
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Valentine Caught Doing Good Coins $4.95 |
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1854 Arrows Half dime Silver coin Very good condtioin $6.50 |
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1916 Walking Liberty Silver Half Dollar GOOD 1st Year Coin $64.50 |
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1850 One Penny Bank Token Coin Good Grade UPPER CANADA $13.44 |
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JULIA MAESA 218AD Rare Authentic Ancient Silver Roman Coin GOOD LUCK Commerce $227.50 |
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CONEY ISLAND GOOD FOR 10 CENTS IN TRADE TOKEN – VINTAGE BRASS METAL COIN – WOW! $9.95 |
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CONEY ISLAND GOOD FOR 5 CENTS IN TRADE TOKEN – VINTAGE BRASS METAL COIN – WOW! $9.95 |
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1940-S Circulated Wheat Penny Roll of ( 50 coins) Good to Fine. $8.95 |
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1920-P Circulated Wheat Penny Roll of ( 50 coins) Good to Fine. $8.95 |
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L@@K!!! 1906 Indian Head Penny “A Very Good Coin” FULL RIMS Free Shipping $0.81 |
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Life is Good SEA SHELL Beach Shells Simple as That sticker 4″ coin $3.00 |
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1900’s Good For A Amusement Slot Token Lot# LPZ370-A Not A Coin $3.99 |
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1959 LANSING MICHIGAN GOOD FOR .50 IN TRADE SOUVENIR MONEY COIN TOKEN #A226 $2.99 |
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GOLD STAR CLUB MEMBER HOME FURNISHINGS GOOD FOR $5.00 COIN TOKEN #M34 $2.99 |
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L@@K!!! 1907 Indian Head Penny “A Very Good Coin” FULL RIMS Free Shipping $1.25 |
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1904 Liberty V Nickel “An About Good Coin” FREE SHIPPING $0.94 |
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Mary Kay Pink Signature Beaded Lipstick Coin Purse,GLASS BEADS,Good condition $2.95 |
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Silver coins most good. very little junk $56.87 |
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1990 Tanzania 50 Senti Coin Very Good condition L $2.89 |
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MY LUCKY PENNY HORSESHOE GOOD LUCK ELONGATED PENNY COIN SOUVENIR TOKEN #EP5 $2.99 |
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NICE!!! 1935 Buffalo Nickel “A Good Coin” FREE SHIPPING $0.38 |
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1799 GEORGE III HALF PENNY BRITISH COIN – GOOD GRADE SEE PICTURES $11.05 |
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L@@K!!! 1937 Buffalo Nickel “A Very Good Coin” HALF HORN Free Shipping $1.02 |
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1883 Indian Head Penny “An About Good Coin” FREE SHIPPING $2.13 |
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1829 Capped Bust Half Dollar A VERY GOOD Coin $30.89 |
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1830 Capped Bust Half Dollar A VERY GOOD Coin $19.38 |
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NICE!!! 1890 Indian Head Penny “A Good Coin” FREE SHIPPING $0.93 |
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1830 Capped Bust Half Dollar A GOOD Coin $12.61 |
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1833 Capped Bust Half Dollar A VERY GOOD Coin $13.00 |
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NICE!!! 1891 Indian Head Penny “A Good Coin” FREE SHIPPING $0.85 |
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NICE!!! 1897 Indian Head Penny “A Good Coin” FREE SHIPPING $1.84 |
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1911s BARBER SILVER HALF DOLLAR NICE CIRCULATED COIN GRADES GOOD $11.69 |
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1835 Capped Bust Half Dollar A ALMOST GOOD Coin $22.54 |
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1854 With Arrows Seated Liberty Half Dollar A GOOD Coin $13.50 |
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1898 Indian Head Penny “An About Good Coin” FREE SHIPPING $1.01 |
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GETA as Caesar Rare 198AD Silver Ancient Roman Coin FELICITAS GOOD LUCK Wealth $262.50 |
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1854 With Arrows Seated Liberty Half Dollar A GOOD Coin $12.50 |
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1907 BARBER SILVER HALF DOLLAR NICE CIRCULATED COIN GRADES GOOD $10.99 |
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1899 O Barber Head Half Dollar A GOOD Coin $9.53 |
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NICE!!! 1899 Indian Head Penny “A Good Coin” FREE SHIPPING $1.36 |
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1899 O Barber Head Half Dollar A ALMOST GOOD Coin $7.50 |
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VINTAGE GOOD CONDITION 1906 P BARBER SILVER DIME-OLD US COIN $7.37 |
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L@@K!!! 1900 Indian Head Penny “A Very Good Coin” FULL RIMS Free Shipping $1.01 |
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1906 o BARBER SILVER HALF DOLLAR NICE CIRCULATED COIN GRADES GOOD $9.99 |
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1909 Barber Head Half Dollar A GOOD Coin $10.50 |
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1912 Barber Head Half Dollar A VERY GOOD Coin $9.11 |
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SOLID GOOD CONDITION 1907 P BARBER SILVER DIME-OLD US COIN $7.37 |
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1913 S Barber Head Half Dollar A GOOD Coin $14.90 |
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1904 p BARBER SILVER HALF DOLLAR NICE CIRCULATED COIN GRADES GOOD $9.99 |
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” Collection of 3 Vintage 3 Kopeks Copper Russia Coins 1840 1841 1843 years Good $9.99 |
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1915 S Barber Head Half Dollar A GOOD Coin $11.35 |
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FREE SHIPPING RARE 1828 13 STARS HALF CENT COIN GOOD BUY IT NOW OR MAKE OFFER $53.95 |
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GOOD 1915 P BARBER SILVER DIME-OLD US COIN $7.37 |
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1916 Walking Liberty Half Dollar A VERY GOOD Coin $41.00 |
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GOOD 1910 P BARBER SILVER DIME-OLD US COIN $7.27 |
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1916 Walking Liberty Half Dollar A VERY GOOD Coin $21.16 |
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1865 – 2 cent peice in good – very good condition. Civil war era coin! $8.00 |
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GOOD 1909 P BARBER SILVER DIME-OLD US COIN $7.27 |
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1916 Walking Liberty Half Dollar A GOOD Coin $10.56 |
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1916 D Walking Liberty Half Dollar A VERY GOOD Coin $28.77 |
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GOOD/VERY GOOD 1906 P BARBER SILVER DIME-OLD US COIN $7.88 |
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1916 D Walking Liberty Half Dollar A VERY GOOD Coin $11.61 |
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L@@K!!! 1906 Indian Head Penny “A Very Good Coin” FULL RIMS Free Shipping $1.54 |