October 2013 Archives

Coin Collecting Album: A Pocket for Your Coins?


For every numismatist or coin collector, finding a good place to store their coins is the most important thing in this world because storing their precious coins in a good and secure place will ensure that the quality and value of their coins is maintained…

There are many types of storage spaces that can help you by displaying and storing your coins. You can either use folders, holders, plastic tubes, or the album, but among these reliable storage spaces, the coin collecting albums are the best way to display the coins.

If you want to know why, here are some benefits of albums and you can evaluate the concept from there:

1. Two-way image viewing

With coin collecting albums, you can get more satisfaction viewing your collections because albums let you see both sides of your coins. You do not have to remove your coins every time you want to see the opposite side.

Therefore, albums give you the best of both worlds.

2. Better defense against instant wear

Another benefit of albums over folders and other coin storage is that it gives the coins better defense against harmful elements that will expedite the deterioration of the coins.

Albums are generally characterized by the use of plastic materials that serve as shield against scratches and environmental factors.

3. Good coin holder

Albums provide pockets for coin storage. The best thing about using a pocket is that even “dilapidated” coins or extremely worn coins are better protected.

Worn out coins, when placed in folders, have the infuriating tendency of falling out over and over again. With coin collecting albums they are kept intact.

4. Variation in prices

Albums that are used in coin collecting are usually priced from $20 to $40. Even though they can be expensive, they provide better storage for your most-prized treasures. Paying the price for an album is a great alternative to the other typical types of storage.

5. Information center

Coin collecting albums are great “information centers” as far as the hobby is concerned because most of the albums that are used in collecting coins have an inside front cover| that allows you to place important information regarding your collection. It also has a back cover that provides space for your “mintage figures.”

Coin collecting is easier and more pleasant with the help of these albums. It makes your treasures last longer, thus, establishing greater value in them.

Therefore, coin collecting albums are definitely the best “keepers” for your coins.

Coin Collecting for Fun

Have coins? Will collect!

Old coins that is. Try looking under that old dresser, or up the attic where grandma or grandpa’s things may be stashed away patiently waiting for you to discover them. Who knows, you might find a coin there, an old coin that – at today’s rate – may be worth a few dollars; probably three or four or five, even ten times what the coin was worth back then.

A penny a day, is worth okay
Fortunately or unfortunately, there was a shortage of copper during the year 1943 and all pennies made at that time were minted using steel. There were however, some Lincoln pennies that were incorrectly minted on bronze that turned out to be blanks. A few years – or decades later -these bronze pennies became a rarity and are valuable. The steel ones though, because of their commonality, are worth only between one to three dollars each.

Be aware and be wary as there are schemes where gullible coin collectors are sold coins that are copper plated in an attempt to make these pennies appear to be bronze. Also, keep your guard up anytime someone offers you a circa 1943 penny made out of a metallic white alloy.

Old coins are good coins
Silver DollarCoins, specifically the silver dollars made and circulated between the years 1878 and 1935, are worth between twelve dollars and twenty five dollars for the circulated coins. The coins that were not in circulation are worth considerably more.

Meantime, those quarters, dimes, or half dollar coins made and circulated prior to 1965, are usually made out of ninety percent silver and therefore worth as much as today’s silver (with an additional premium, albeit small, put on the coin’s face value).

Wrong pennies are right
There is a Lincoln penny issued in 1972 on which the date and the letters on it appear to have been doubled. This rare coin is currently worth about sixty dollars, assuming the pennies are in standard condition. The Philadelphia Mint during that time period accidentally misaligned the die used in minting the coins causing the portrait of Lincoln to look like it was doubled. Fortunately or unfortunately, eighty thousand of these were circulated before the error was discovered.

In summary, coin collecting is similar to collecting bits of history and trivia from the past. In addition to the face value its worth as a treasure – pennies, dimes and coins – often are worth more in the long run.

Some Investment Points in Devising a Gold Investment Plan

Those who want to dabble into gold investing as part of their financial portfolio need to plan their investments carefully. A gold investment plan will work well to maximize yields within a specific time frame in which a person wants to realize his financial goals.

Devising a plan can be done individually or with the help of an expert such as a personal financial planner or an investment advisor. Understanding gold as it is used in personal investing is also an important aspect of any investment plan. It is essential to gain knowledge about how different investment products involving gold can serve various purposes for investors. Once the basics are covered and the resources are made available, a workable investment plan can easily be set into action.

When you invest, you put in a certain amount of funds with expectations for some future gain. This is quite different from savings as only a slight gain can be expected in exchange for the liquidity and security these products offer. Any investment presents risks, usually tagged low, medium, and high. The lower the risk, the lower the potential yields are likely to be. Inversely, investments with higher risks also present higher potential yields. Investment instruments that are high risk would not go well for investors who do not have much to invest and has low appetite for risks. The best investment options for these kinds of investors would be those that are likely to preserve their value over time and are not subject to much volatility.

Any plan would have to be devised in such a way that the potential yields are aligned with the financial goals of the investor. This means that any investment instrument should be chosen based on its ability to meet the investor’s target portfolio size within a specific time frame. Long-term investments with guaranteed yields would fit younger investors looking to accumulate funds for their retirement fund. Those who are a little more mature in age and have a shorter time frame in mind would most likely be in the market for instruments that can give high yields within a short period. Unfortunately, high yielding short-term investment products require larger cash or investment outlay. It is common to put together a combination of investment instruments in an investment plan to meet an investor’s financial goals.

One of the best investment options that you can put your money in today is gold. Gold and gold-related investments have consistently outperformed other investment instruments over the past years.

While there is no certainty as to the what the future holds, investment experts and financial analysts project gold to continue with the same upward trend in the coming years. Having a gold investment plan as part of your financial portfolio planning would definitely be an advantage especially since currency pressures, government deficits, and external debts are rocking global economies at present.

You may combine different products in your investment plan based on your investment appetite and financial goals. You can opt to buy gold bars or gold certificates, allocate a certain part of your IRA towards investments in gold, or take a more active stance by trading gold funds and gold company stocks. Always be guided with a good strategy that will allow you to maximize yields on your investment without exposing you to investment risks you might not be ready to handle.

Numerous options for buying gold online have appeared in recent years. For example, you can purchase gold on a regular basis depending on your budget. Opening a SilverSaver® account takes just 10 minutes. There is no paperwork to send, and as soon as your account is verified, you can schedule purchases to begin immediately.

Trading gold company shares in the stock market and investing in gold exchange traded funds takes a little more work than simply purchasing gold bars and certificates. Even as expert investors and traders can work on gut feel, it is not necessarily a guarantee that you will benefit from any impulsive investment decisions with regard to gold. It takes some understanding of the market and some fundamental analysis to be able to successfully navigate the realm of gold investing.

At the very least, investors should be able to follow rules and read indicators. This simply means that you have to know when to buy and when to sell using data of past performance and trends in price values. Some investors who do not want to worry about learning about the technicalities of the trade can turn to expert gold trading advisors or get reliable gold traders to help them with their gold investment plan. These services, however, may come with expenses like subscription fees, commissions, and other charges.

Gold Investment Account – Definition, Types, Advantages, and Disadvantages

Image courtesy of ponsulak / FreeDigitalPhotos.net

Gold has been used throughout history as “real money”. It has maintained its reputation of being an attractive commodity against inflation, deflation, and currency devaluation. A lot of investors started losing their faith in stocks, currencies, real estate, mutual funds, and other investments after the major economic stress in 2008. Many preferred to pay for gold and considered getting a gold investment account.

While the most popular way of investing in gold is buying bullion gold bars, buying gold using a gold account is another vehicle to invest in this precious metal. A gold investment account is an account that allows investors to buy the purest available gold commodity in the market. In contrast to physical gold (bars, coins, jewelries, etc.), gold accounts allow investors to build up a cheaper gold portfolio. Below are some of the other benefits of gold accounts.

  • Gold accounts, similar to other forms of gold investments, act as a hedge against inflation.
  • Gold trading becomes more convenient when gold accounts are used during transactions.
  • It is an affordable initial investment.
  • Gold in an investment account can be easily disposed on demand unlike jewelries.
  • The risk of loss and theft is reduced since the asset is held in an account.

As with all other kinds of investment, gold accounts also have weaknesses. Here are some of them.

  • Because gold accounts are not tangible, one cannot pawn it for quick cash.
  • Transactions must be made over the counter during banking hours only.
  • If your bank goes out of business, you can lose all your gold.

There are plenty of banks that offer gold accounts. Different gold accounts impose varying types of intermediation between the investor and their gold. In general, gold bullion banks offer two kinds of gold investment accounts – allocated and unallocated.

What is an allocated gold investment account?

Just like keeping gold bars inside a highly secure deposit box, this gold account is one of the safest forms of gold investment. When gold is placed in an allocated account, the gold is kept in a vault managed by a recognized bullion dealer or depository. Bars and coins are distinguished, numbered, and identified through hallmarks, weight, fineness, etc. These precious metals are then allocated to different investors who pay for the price of gold, storage, and insurance. The bullion dealer or depository who is responsible for managing the vault may not sell, lend, or lease the metal – except when there are specific instructions on the account.

What is an unallocated gold investment account?

Unallocated gold account investors generally do not have specific bars assigned to them. Traditionally, one major advantage of unallocated gold accounts has been the absence of storage and insurance fees, because the bank reserves the right to lease the gold out.

But, now that the gold lease rate is negative in real terms, a good number of banks have started to introduce charges even on unallocated gold accounts. As a rule of thumb, bullion gold banks do not transact in quantities below 1000 ounces. Their clients are institutional investors, private banks acting on behalf of their clients, central banks, and gold market players who are interested to buy or borrow large quantities of gold.

An investment in gold accounts is a great way to diversify your financial strategy and portfolio. While some investors prefer to actually hold their gold, others desire to put theirs in a gold account which allows them to earn potentially higher return from appreciation in gold price. If you think that investing in gold accounts better suits your investment needs, just see to it that before you decide on one, you have a good background of the market and how this can affect your portfolio.

Gold And Silver – Central Bank Death Dance

Here’s a powerful article you really need to read.

Gold and silver are lagging in price not because of the true demand situation, or even the dwindling supply/default on physical delivery circumstances. The question no one is asking is why are central banks and their servant governments doing everything possible to preserve the soon-to-be-devalued dollar?

If gold and silver were allowed to reflect their true worth, it would totally undermine the existence of the dollar and topple central bankers and governments. Those bankers won’t go down without a fight, and they will destroy existing western currencies in the process. If the paper dollar is how you measure your worth, you have been warned.

Read Gold And Silver – Central Bank Death Dance, Part I

US Coin Collecting

Some people are born to love money; whether they spend it or just collect it, they are simply born to love the way money provides them the kind of gratification that they want.

For example those people who are coin collectors simply love the sight of coins and many wish to display their collections as art.

In the United States, coin collecting started as early as 1652. During this period, business people and individuals alike, were known to engrave and distribute their personal coins.

Some people are so interested in coin collecting that they are more willing to combine various forms and categories. The reason for this fascination for these coins is the very nature of U.S. coins.

The U.S. Mint carefully crafts U.S coins and over the past 30 years it has minted nearly 300 billion coins.

When the Articles of Confederation gave consent for the different states to create or manufacture their own coins, the U.S. coin collections grew at an unparalleled rate. That is why in the middle of 1780’s, states like Connecticut, Vermont, New Jersey, New York, and Massachusetts started creating various coins unique to their states. This prompted the start of “rare coin collection.”

To know more about U.S. coin collecting, here are some of the basic facts that you must know:

1. It was on 1787 that the primary “federally” approved coin of the U.S. was first made. It was in New Haven, Connecticut where the “Fugio Cent,” the name of the coin, was secretly manufactured.

2. The U.S. Mint is responsible for manufacturing the U.S. coins. The agency uses bands of metal that are rolled into loops, with the right breadth and measurements. Each kind of coin uses a particular kind of metal. For instance, metal strips that are made of zinc are used to manufacture pennies, while nickels are made of a 25% “nickel metal alloy” and 75% copper.

For this reason, U.S. coin collecting is further subdivided into categories such as the U.S cent, U.S. nickel, U.S. dime, etc.

People who would like to start collecting U.S. coins, should learn the intricacies or the hobby and find ways to acquire their first coins.

The hobby of U.S. coin collecting is not just a wonderful hobby but also a great way to preserve the nation’s culture and history.