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MEXICAN GOLD COINS

Posted by BLOGGER on Saturday, June 26, 2010 , under | comments (0)



Mexican Gold Coins

Mexican gold coins are not as well known as the Eagles and Maple Leafs etc. But they nevertheless have a history and beauty all their own.

Gold is steeped in Mexican history. The Aztec Empire are very well known for their fascination with gold and it represented the sun in their culture which of course is the same color. However the Aztecs did not use coins as they used goods to trade with.

It was later with the coming of the Spanish that coins were introduced into the cultures of Mexico at that time. These were gold Escudos and they were issues in half, 1, 2, 4 and 8 escudos. This remained until 1964 when decimal currency based on the peso was introduced.

And then we come to the Mexican coins of today.

The current Mexican gold coin is the Libertad. This is available in one twentieth, one tenth, a quarter, a half and one full troy ounce size. These coins also contain some alloy to strengthen the coins.

More commonly the peso gold coin is minted by the Mexican Government and this comes in ranges from 1 peso, about a fortieth of an ounce, up to 100 pesos.

There are a great variety of other Mexican gold coins available and for the enthusiast, it can mean many happy hours browsing the vast quantity of Mexican gold coins available.

As with any gold coins, there are some points to consider when buying mexican gold coins.

Ensure you deal with a reputable dealer. There are many fake coins out there and they are so well created that one might not even realize until the time comes to sell them.

Look out for deals and discounts. Try to build up a collection of a specific coin, perhaps acquire all the dates of issue. A collection such as this is invariably worth more than the value of each coin individually.

Do lots of browsing. You will be surprised what you will find online while looking for Mexican coins.

Last but not least, have fun!. Collecting Mexican gold coins can be a real pleasure for the coin enthusiast!

PANDA GOLD COINS

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Panda Gold Coins

Panda gold coins, as the name implies, feature a very adorable Panda on the obverse (head) side of the coin.

China first issued its gold coins in 1982 in one tenth, one quarter, one half and one full troy ounce sized coins. In 1983 the mint added a further size, one twentieth of an ounce.

In later years larger sized coins were added, 5 troy ounce and 10 troy ounce coins. These are among the few gold coins issued in such sizes around the world.

Each issue features a panda the design of which has varied over the years, making these coins ideal for collectors. However, the 2002 Panda is identical to the 2001 as the Chinese Government imposed a freeze on the design. This was eventually lifted in 2003 due, in part, to the requests of collectors.

All these coins were proof-like rather than actual proof coins and were simply Brilliant Uncirculated. In 1986 to 1995 proof sets were issued, so these now command a higher price due to the limited issue and increasing rarity.

The mintage of these coins, compared to American Eagles, Canadian Maple Leaf, Krugerrands and other well gold coins, is very small so these coins tend to price a lot higher.

For example in 1982 there was less than 16,000 1 troy ounce coins produced, in 1983 only 22447 and in 1984 only 23330. The most 1 troy ounce coins minted by the Chinese Mint in any one year was 150,000 but that is mostly only in recent years.

The price of early Pandas is quite high therefore. A 1982 1 half ounce gold panda with a purity of .999 fine, grade proof-like brilliant uncirculated will fetch over 800 USD on the open market. The gold value is closer to 250-270 USD at today’s gold price.

A full collection of half ounce gold pandas featuring coins from 1982 to 2005 will be worth well over 9000 USD. A very tidy sum for a collector who may have patiently collected the coins each year at their original price.

Panda gold coins are an excellent investment for the future not only for the gold value but for the rarity and beauty, but any collector would be pleased to have just one panda gold coin in his collection.

ISLAMIC GOLD COINS

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Islamic Gold Coins


Not very well known in the west is the Islamic Gold and Silver coins available for collecting, saving and trading.

The history of Islamic coins and the laws relating to them may be found at Islamic Gold Coins and it is a very interesting piece of history not generally known in the west.

According to Islamic Gold Coins.
"In the beginning the Muslims used gold and silver by weight and the dinar and dirhams that they used were made by the Persians."

"The first dated coins that can be assigned to the Muslims are copies of silver dirhams of the Sassanian Yezdigird III, struck during the Khalifate of Uthman, radiy'allahu anhu. These coins differ from the original ones in that an Arabic inscription is found in the obverse margins, normally reading "in the Name of Allah". Since then the writing in Arabic of the Name of Allah and parts of Qur'an on the coins became a custom in all mintings made by Muslims."

"Under what was known as the coin standard of the Khalif Umar Ibn al-Khattab, the weight of 10 dirhams was equivalent to 7 dinars (mithqals)"

These would perhaps be some of the oldest minted coins in existence and, it is said, are still being minted today.

Strict Islamic Law does not permit the use of a promise of payment as a medium of exchange therefore does not permit, within its circle, paper money but only gold and silver.

It is considered that gold and silver are the most stable currency the world has ever seen. From the beginning of Islam until today, the value of the Islamic bimetallic currency has remained surprisingly stable in relation to basic consumable goods:

A chicken 1400 years ago, cost one dirham (a silver coin). Today, it still costs approximately one dirham. The inflation in terms of the value of silver therefore has been zero unlike the paper currencies prevalent today. The same applies to gold.

Gold cannot be inflated by printing more of it. It cannot be devalued by government decree. Unlike paper currency it is an asset which does not depend upon anybody's promise to pay.

Portability and anonymity of gold are both important, but the most significant fact is that gold is an asset that is no-one else’s liability.

All forms of paper assets: bonds, shares, and even bank deposits, are promises to repay money borrowed. Their value is dependent upon the investor's belief that the promise to repay will be fulfilled. As junk bonds and the Mexican peso have illustrated, a questionable promise soon loses value.

Gold is not like this. A piece of gold is independent of the financial system, and it's worth is underwritten by 5,000 years of human experience.

The Islamic Dinar is a specific weight of 22k gold (917.) equivalent to 4.25 grams and the Islamic Dirham is a specific weight of pure silver equivalent to 3.0 grams.

The coins are used principally for savings as they are considered wealth in themselves. They are also used to pay for dowry and used to buy and sell or trade as a legitimate medium of exchange.

These coins are very hard to come buy. There is a lot of speculation going on with Dinar paper money from Iraq but that is more concerned with cashing in on war and human suffering than promoting the value of gold coins.

If you ever come across any genuine Islamic gold coins such as the gold Dinar, buy them, they are worth more than their weight in gold!

GUERNSEY FINE GOLD COINS

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Guernsey Fine Gold Coins

Guernsey fine gold coins are very pretty and have a unique aspect in that there is no head of state onb the coins as is traditional with most country's coins.

Guernsey is a small island off the French Coast but part of Britain. It is a British protectorate with it's own mint which produces some very fine coins.

A good example is the Guernsey fine gold One Double coins. These are available in two weights: 1/10 and 1/4 troy ounce pure 999 fine gold. The One Double was legal tender and was first minted in 1830; it was released periodically until 1966 together with the Two, Four and Eight Doubles.

SPECIFICATIONS:
One tenth troy ounce
Purity 999 fine gold –
Diameter 19mm –
Weight 3.11 grams.
One quarter troy ounce
Purity 999 fine gold –
Diameter 19mm –
Weight 7.78 grams.

The Guernsey double design features on the obverse side the royal seal of King Edward I, given to the island of Guernsey in 1279; the reverse features the coins denomination, the year of minting and the purity mark.

The Guernsey Mint, Guernsey fine gold coins produces many fine coins which any collector would be proud to own and the Guernesey fine gold coin One Double would be no exception.

BEST BUY FOR BULLIONS

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Best Buy for Gold Bullion Coins

Definitely one of the best buys for gold bullion coins is the 99.99 percent one ounce gold coins.

The most popular of these are the American Gold Eagle, the Canadian Gold Maple Leaf and the South African Krugerrand.

All these coins contain 1 ounce of gold and are over 90.00 percent fine.

It should be noted that, whereas the Gold Maple Leaf is 24 karat gold, the gold eagle and the Krugerrand are only 22 karat gold. This means it is alloyed with another metal, usually silver and or copper, to increase it’s hardness and durability. Despite this the popularity of the gold eagle and Krugerrand have never waned.

For new coin collectors and investors, these coins make a great start to a collection.

All these coins are easily transported, stored and can be sold quickly if required. They are accepted in all countries and are all legal forms of currency in their own country.

Current prices for these gold coins are in the 600 to 620 US dollar range but the price will vary as the price of gold varies.

When you buy such coins you will always find the dealer has added his own mark up to the price as well as shipping and, if requested, insurance.

Always ensure that when you buy gold coins from a dealer that you select a reputable dealer and that the coins come appropriately sealed and with a certificate.

For a new collector, the best buy for gold bullion coins is the top three, American Gold Eagles, Canadian Gold Maple Leaf and South African Krugerrands, and these will give hours of enjoyment and pleasure to young and old alike.

BUYING GOLD

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Buying Gold Coins

Buying gold coins can be a fascinating and rewarding hobby provided one follows a few simple guidelines.

First one should consider how much gold you want at today’s price. Of course this should be within one’s budget either on a right now basis or spread over time with regular purchases.

One should also decide on the type of gold you would like to own. Gold coins, bars or nuggets. Nuggets are hard to come by and it requires an experienced eye to know which are the best and which are not. However, their natural untouched beauty can make them an appealing option for gold collecting. Gold bars are a good buy but somewhat bland for some people's taste. Gold coins, however, have a magic all their own.

There are many different types of gold coins but by far the best are those which are guaranteed to contain 1 troy ounce of gold.

Such coins as:
  • Australian Kangaroo
  • Austrian Philharmonic
  • Canadian Maple Leaf
  • South African Krugerrand
  • United States Eagle
  • British Sovereigns
Are typical examples of the coins one can buy.

It is important when buying gold coins to get the best deal possible. This might mean paying cash and watching out for special discounts or special offers. Shopping around is always a good idea. There are many reputable dealers out there jostling for your dollar!

So you need to select a trusted, reputable firm that is a Mint Recommended Dealer and can also demonstrate being a member of the American Numismatic Association, if in the US, or the equivalent in other countries.

It is important to work with a trusted dealer to ensure the coins you are purchasing are not counterfeit. In addition you may wish to sell back coins you have purchased and this is much easier with a dealer you have a track record with.

One can have a lot of fun building up a collection of gold coins and there are some great deals available, when buying gold, for the watchful eye!

GOLD COIN GRADING

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Gold Coin Grading

Gold coin grading is a very important part of determining the value of a coin enthusiast’s collection.

There are many factors to take into account when grading coins.

The quality of the gold coin when it leaves the mint. It is possible, even with proof coins, that imperfections can be found which occurred during the striking process. If there is even so much as a tiny foreign substance between the dies when the coin is struck then that will leave an imperfection. Hairlines can form when someone touches the coin with their bare hands or wipes the surface of a coin or even simply sliding it out of the protective coin holder.

Hairlines are the most common reason why gold coins are downgraded in proof to perhaps Proof-63 and Proof-64 instead of Proof-69 or Proof-70. Anything that touches the surface of the coin can leave hairlines. Hence the extremely high value of old coins that have no surface imperfections, hairlines etc.

Cleaning a gold coin can also adversely affect it’s grading. Unless you know how to professionally clean gold coins, cleaning should be left to a professional. Chemical cleaning can sometimes remove a layer of gold leaving a bright surface underneath but this also can damage the gold coin, particularly a proof coin. This can also be spotted by a professional grader however as can mechanical cleaning where abrasives are used. These will commonly scratch the surface of the coin and reduce the grading and therefore the value.

It is probably wiser to avoid any cleaning whatsoever as the fact of cleaning itself may affect the grading of the gold coin.

For older gold coins the amount of circulation wear or, for an uncirculated mint coin (MS60 through to MS65) how close it resembles a "perfect" condition when first struck.

Proof gold coins are struck in a special way with extra attention to the striking process and these coins are primarily meant for collectors.

All rare gold coins should be independently certified for grade and authenticity by a leading independent grading service, for example:

Professional Coin Grading Service by PCGS and
Professional Coin Grading Service by NGC.

Certified gold coins protect both the buyer and the seller by providing protection and an agreed grading and value for the gold coin.

Gold coin grading is very important to ensure you can demonstrate the true value of your gold coin collection and well worth the small amount it costs to obtain certification.

NEW GOLD COINS

Posted by BLOGGER on Saturday, June 19, 2010 , under | comments (0)



As well as existing gold coins there are also the regular issues of new gold coins. Various mints such as the US Mint, the Royal Canadian Mint, The British Mint and many others issue BU (Brilliant Uncirculated), proof and commemorative coins yearly.

Canadian Maple Leaf gold coins from Canada, Britannia gold coins from the UK, US Gold eagles, South African Krugerrands. Pandas from China and Kangaroos from Australia. All are produced on a regular basis.

One can buy single coins but, if you can afford it, it is better to buy about 5 ounces at a time in gold coins as the mark up, handling and shipping charges by the dealer is going to be a lot less. Sets and presentations of gold coins are a good buy also.

If possible find coins that have a limited mintage as these will increase in value over the years since there are only a limited number made.

When buying gold coins always ensure that you deal with a reputable dealer and ensure the coins are what were described, when you receive them, especially when it comes to the condition. If you buy proof coins they should be proof and not BU. If you buy BU they should be BU and not simply uncirculated.

Check that the coins are properly sealed and have not been opened and resealed again. They should be sealed in a plastic transparent container especially for proof coins. Proof coins usually come in a presentation case or box. That presentation case should be the original, not a later made up one. You can check this by going to the mint and checking how the coin was originally sold.

Some mints will sell coins direct to the public and this is a good guarantee that you are getting what you asked for.

Buying new gold coins can be fun as well as a good investment for the future so it pays to ensure that you are getting what you paid for.

RARE GOLD COINS

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Buying Rare Gold Coins is a facinating fun thing to do and can also be quite profitable.

Althoough rare coins come in many metals and types, by far the best rare coins to collect are gold ones. At the very least one has the intrinsic value of the gold in the coin but also there is the potential for increased value due to rarity, demand and other factors.

The same could be said for silver coins of course, but the value is less and the fascination is a lot less than for gold coins.

Buying rare gold coins can be done from coin dealers, general auctions such as ebay.com or specialised coin auctions such as heritagecoin.com for example.

A rare gold coin is usually a coin from earlier times that is valued for its age, beauty, or workmanship and could be considered an antique if it is old enough and desirable for either its aesthetic appeal or its artistry. It can also be a fairly modern coin if it is rare enough.

Collectible rare gold coins are distinct in that they are harder to come by, and therefore considered more valuable. The age and condition of rare coins are, of course, key factors in determining their value, but also important is their attainability. Following the law of supply and demand, if the demand for an item is high and the supply of it is low, that item becomes more expensive.

Here are some criteria to keep in mind when buying rare gold coins.

  • Type of coin. Eagle, sovereign etc. Many rare coins can be from earlier times such as Turkish, Roman etc.
  • Date of coin. A rare coin should be dated. A coin to be rare should be at least 50 years old although they could be less if very rare.
  • Size of coin. These can vary also. Sometimes measured in value and sometimes in weight.
  • Face Value. This may bare no resemblance to the value of the coin as an antique but certainly helps to identify the coin.
  • Weight. Usually measured in troy ounces or part of an ounce but grams have also become a popular weight measurement recently.
  • Fineness. (999% fine) Amount of gold compared to other metals, such as silver. This information may or may not be available, especially with the earlier coins.
  • Gold content in grams and troy ounces. The weight of the gold contained within a gold coin, measured in grams. Again this information may or may not be fully available.
  • Price. How much you would be expected to pay for the gold coin advertised. The perceived value of the coin depending on what coin it is, the rarity, demand and the other factors listed above. As well as any margin added by the seller and any tax that might be applicable.
And remember, if you pay just that little bit too much, just wait a while and you will recoup your value.

Keep in mind also, whether you are collecting as a hobby or done for serious investment purposes, buying rare gold coins is a fun activity!

BUY GOLD

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Gold coin investments and investing are another way of investing in gold.

If you intend investing in gold coins, it is important to have some knowledge of the various types of gold coins, how much they cost and their market value and even what their value is expected to be in the coming months and years.

First thing to know is that there are different types of gold coins. These include the rare and antique coins as well as the newly minted of which you have Brilliant Uncirculated and Proof coins.

Rare and antique coins demand the most knowledge. Some can be worthless almost while others can fetch a very impressive price at auction. In the thousands and even up to the millions in very rare cases.

Brilliant uncirculated and proof coins can be obtained from dealers and mints. The best time to purchase is when the coins are first issued. There is usually a limited supply which can be anywhere from a few thousand down to just a few hundred. The coin dealers are very quick to snap up the smaller strikes so you have to be quick. Usually there is a limited of one or two sets per person also. Some people get their families to purchase for them also in order to build up their stocks.

Newly minted gold coins usually take a while to build up in value. The initial purchase also includes the shipping, packaging and, of course, the profit of the mint and dealer so the cost of that has to be made up too. Once you have gotten past that point in the value of your coins it is just a matter of time. The value of gold has demonstrated that it continues to rise against the value of the dollar and other currency so it is extremely unlikely you will lose any value.

In fact the value of gold has never dropped. An ounce of gold continues to purchase exactly what it did 50 years ago. The same cannot be said for the value of the dollar or other currency in fact.

With the rare coins , these of course have a value that can far outweigh the value of the cold content. The rarity value increases with the degree of rarity which often increases over time and in line with the demand created for the coins.

The best place to find these are at dealer auctions and auctions such as Sotheby's as well as in coin associations and groups. Private sales are a good place to look.

So gold coin investments and investing continues to be an excellent hedge against inflation and recession and can provide an excellent back up of assets for the future.

GOLD COINS

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Gold coins, next to silver, are one of the oldest forms of money known. The first recorded history of gold coins were those introduced by King Croesus ofLydia around 560 BC.
It is only recently, around 1933, that gold coins have stopped being used as currency. Despite this, many of the coins these days are still legal tender in the country in which they are struck.

There are many different types of gold coins and many countries produce gold coins for collectors and as an investment for people interesting in protecting themselves from variations and pressures economically
Gold coins are very popular among people who are keen to "hedge" against inflation or a store assets. The South African government introduced the Krugerrand in 1967 to cater to this very market. This was a boom to the American collector as, at that time, it was illegal for any US citizen to own gold, but owning coins of legal tender (which the Krugerrand was in South African) was not illegal. This enabled a UScitizen to effectively own gold. At exactly one troy ounce. The Krugerrand was the first modern, low premium (i.e. priced only slightly above the bullion value of the gold) gold coin. Gold coins are also produced in fractions of an ounce – typically half ounce, quarter ounce, and one-tenth ounce and , recently one twentieth of an ounce. Generally speaking, gold coins do not carry a meaningful face value, as their value is determined by their troy weight and the current market price of the precious metal. Where a face value is minted on the coin, it is invariably done for legal or other reasons and it is nearly always significantly less than the actual value of the coin.
These days one can buy gold coins from most countries. The design on the coins tend to remain constant, at least on one side where a particular individual is represented. In the UK it is the Queen, In the USA, usually a president. Almost all are proof coins. This means they have been struck a number of times to give that beautiful sheen and gloss that proof coins have. Such coins should not be touched by the naked hand. If one intends to handle gold coins, especially proof ones, then very soft gloves should be used but it is advised not to handle gold coins by hand at all actually.
When you buy gold coins they should come sealed in their own transparent plastic bubble. Always check to ensure the bubble has not been tampered with and is completely sealed. The coin should not be removed from the bubble at all as this can affect not just the surface of the coin but the value as well.
The value of a gold coin is determined by a number of factors, the condition of the coin, the rarity, its age and how many were minted. As an example just 5 years ago a very rare $20 1933 Double Eagle gold coin was sold at auction for over 7.5 million dollars.
Gold coins can also be very beautiful and many people will collect them for their beauty alone.

LONDON GOLD PRICE

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London gold prices are fixed twice a day at 1030am and 3pmLondon time. The London Gold Fixing is done by five members of the London Bullion Market Association. They sit down and discuss the price until they come to an agreement. This has, in the past, taken some time but these days it usually only takes a few minutes.

According to Wikipedia, the first fixing actually took place on 12 September 1919 among the five principal gold bullion traders and refiners of the day: N M Rothschild & Sons, Mocatta & Goldsmid, Pixley & Abell, Samuel Montagu & Co. and Sharps Wilkins. The gold price then was a princely four pounds 18 shillings and ninepence (GBP 4.9375) per troy ounce. Due to wartime emergencies and government controls, the London Gold Fixing was suspended between 1939 and 1954.
The gold fixing was then done twice daily at the City offices of N M Rothschild & Sons in St Swithin's Lane until May 2004 when it was taken place by the telephone. In 2004 N M Rothschild & Sons withdraw from gold trading and the London Gold Fixing and was replaced by the Barclays Bank.
A curious tradition of the London Gold Fixing was that participants would raise a small Union Jack on their desk to pause the proceedings. Under the telephone fixing system this changed and participants can now register a pause by saying the word "flag", and the chair ends the meeting with the phrase "There are no flags, and we're fixed".
The current five participants in the Fixing, who must be members of the London Bullion Market Association, are now all banks unsurprisingly. They are:
Scotia-Mocatta — successor to Mocatta & Goldsmid and part of Bank of Nova Scotia
Barclays Capital — Replaced N M Rothschild & Sons when they abdicated
Deutsche Bank — Owner of Sharps Pixley, itself the merger of Sharps Wilkins with Pixley & Abell
HSBC — Owner of Samuel Montagu & Co.
Société Générale — Replaced Johnson Matthey and CSFB as fifth seat
Now even though you will see a gold fix price in dollars it is actually done in British Pounds Sterling and Euros not dollars. The gold fix in euros is a new venture. Traditionally, the London gold fix has always been in Pounds Stirling.
Although the London gold fixing is done twice a day and a gold price established, this does not mean that the price of gold stays at that price until the next gold fix. This is not the case. The fix price is the price at the exact instant in time at which it is agreed but within seconds it will be trading at different prices again.
So why have a London gold fix at all? Basically the five members use this as benchmark to establish a market price fixed for that precise moment when they can balance their sales and purchase transactions including orders and commissions from their clients. It also serves as a guideline for other gold dealers internationally.
Because five banks now 'control' the London Gold Fixing, it could be said that the banks are controlling the price of gold. This would be incorrect. The London Gold Fixing has become more of an institution and tradition than anything else. The price of gold is controlled by peoples perceptions of the value of gold, world economic affairs, how much gold is being bought and sold and other external influences such as new discoveries, sudden large purchases etc. 
The London Gold Fix or London gold quote, as it is sometimes called, simply acts as a guideline which, in fact, many around the world do not follow. If a new gold strike is discovered in the outback of Australia, or China decides to buying several million extra tones, that is likely to have a greater impact on the price of gold than any agreement 5 men in an office is going to make.
Historically it has not controlled the value of gold, which seems to retain its own value regardless of the many variables that can appear to affect it. There are daily rises and falls and even weekly or monthly rises and falls which many analysis enjoy discussing and making up charts for. But in the final analysis, gold has been rising steadily over the past 100 years against just about any currency you care to name and is likely to continue that trend.
People love gold. People love to own and keep gold. Gold is considered valuable.People will always consider owning gold a better option than paper currency. Paper currency is a tool these days used by governments and those that influence them to control economies. This cannot be done with gold, hence the dropping of the gold standard. A currency will change and can be the subject of manipulation, inflation and depression (sorry – recession).
Gold stands alone. Offer gold to someone and they will take it. You can buy exactly the same value with an ounce of gold now than you could 50 years ago. Not something that could be said about currency.
Regardless of the London Gold prices and the fixing of the gold price each day, gold will continue to be a favorite and considered valuable regardless of the times and economics of the day.

PRECIOUS METALS

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Precious metals are defined as those metallic chemical elements considered of high value compared to other metallic chemical elements by virtue of their comparative rarity. Examples include gold, platinum, silver and palladium among others. They are also chemically less reactive and have a higher luster. They tend to be softer metals yet have higher melting points.

Precious metals, such as gold and silver, has been historically used mainly for currency, but these days precious metal investing is much more prevalent. In fact gold, silver, platinum and palladium, each have their own ISO 4217 currency code (ISO 4217 is the international standard describing three letter codes, also known as the currency code, to define the names of currencies established by the International Organization for Standardization (ISO).

So the demand for precious metals is driven not just by their industrial, practical or decorative use but also by their investment potential and the stability of stored value. Some of the advantages, people see, of buying and selling precious metals include them holding their value even in times of economic uncertainty, as well as they also do not deteriorate and are relatively easy to store and transport

Precious metal prices vary of course and this is dependent on a number of factors including, the demand both industrial and commercial, the possibility of manipulation and the discovery of new sources of the metal affecting its supply and perhaps even rarity.

You can buy and even sell, precious metals in a number of ways.

Actual metal such as gold, silver, palladium in the form of coins and bars. Investments in the form of precious metal funds such as EFTs, certificates and direct investment in stocks or shares of metal producers and processors. Also just trading in precious metals on a daily or regular basis.

How you do so will depend upon your circumstances and your needs and wants in this area.

It is an excellent idea to 'know before you go'. This means deciding what you want in terms of precious metals. Do you just want to be a collector? Or are you interesting in preserving your assets or just making money trading precious metals on a daily or even hourly basis? Your purpose, when dealing with precious metals, needs to be clearly defined.

Then you will find it easy to decide what you want to do in the precious metals market.

You would then need to find for yourself a reliable and secure precious metals dealer. This could be a dealer who sells precious metals in the form of bullion or jewelry, or a market dealer who specializes in investment vehicles such as precious metal funds or EFTs for example. The usual rules of due diligence would apply here. Who is the dealer? Are they a member of the better business bureau in the country in which they are situate, etc.

In short, you will need to make a serious study of the area you want to participate in and understand how that area works and how it can help you achieve your goals with these rare metallic elements. Doing that will go a long way to you satisfying your desire with regard to precious metals.

GOLD AND DOLLAR INVESTMENT

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In a competition of gold vs the dollar investments, gold would quite likely win hands down.

There are a number of reasons for this. Where you see the price of gold changing it is invariably the value of the dollar against the value of gold that is actually changing. Not the value of the gold.

The value of gold has not materially changed for the past 50 years or so. You can still purchase the same material goods and services with an ounce of gold as you could 50 years ago. This does not apply to the value of the dollar of course. It takes a lot more dollars these days to buy the same goods you bought 50 years ago.

The question, for investment purposes then, is what do you invest in? Dollars or gold?

Investing in dollars leaves one open to the manipulative fluctuations resulting in the dramatic variations of value in the dollar and the devaluation caused by the continual printing of more dollars (we are talking US dollars here but the same principle applies to many currencies around the world) to fund debts such as the federal government debts as well as public and private debts.

Gold however, remains consistent and in fact does not increase in value in terms of purchasing power. Rather the value of the dollar decreases, in the long term, against the value of the dollar. Once upon a time 20 dollars would have bought one ounce of gold. Now it takes between 600 and 700 dollars and this is quite likely to go higher as the manipulation of the dollar continues.

However what you could buy for 20 dollars 50 years ago will now cost around 600 to 700 dollars. Interesting! This tells one immediately where to put one's money if you want to retain the purchasing power of your assets.

Gold coins, bars, or ingots, all are suitable instruments of investment for the long term haul. Gold is interchangeable for goods and services. It can be used as a currency and often is. Gold is not dependent upon any promise. One simply hands over the gold or receives the gold.

The value of gold is determined by its usefulness rather than by any manipulation (extremely difficult with a sold metal which may explain why the gold standard was removed in 1971 enabling the dollar to be subjected to more manipulation.

According to James Turk in his article "8 Things Everyone Should Know About Gold",James Turk,

"Though central banks do not control the gold market, they can influence gold’s price. Importantly, their influence is diminishing. Central banks have been dishoarding much of the gold in their vaults, so they now hold a relatively small part of the aboveground gold stock. After the Second World War, about 68% of the aboveground gold stock was in the vaults of central banks. It’s now about 10%.

Less gold within their control means that central banks have less influence on its price, which is one of the reasons central banks are no longer the factor they once were."
It seems therefore that the more divorced gold is from the dollar, the better it fairs and the more stable and therefore attractive it will become.

In a competition of gold vs the dollar investments it seems that gold indeed wins hands down!

DOLLAR BACKED BY GOLD

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When people buy gold, many seem to have the misconception that the US dollar is backed by gold. Well ... it used to be. The US currency, like many other currencies at the time, was backed by physical gold kept in Fort Knox and other places.

In 1933 the US abandoned the Gold standard along with many other nations, such as Italy in '34, Belgium in '35 and others during the 1930s. Switzerland was one of the last countries to drop the gold standard and this was done in 1999 by the approval of a new constitution that eliminated the traditional requirement for the country's currency to be backed by gold.

The gold standard monetary system is a system in which the standard economic unit of account is a fixed weight of gold. Under such a gold standard, currency issuers guaranteed to redeem notes, upon demand, for that amount of gold. Also governments that employed such a fixed unit of account, were able to redeem their notes to other governments in gold and share a fixed-currency relationship.

However, these days, the gold standard is not currently used by any government or central bank, having been replaced completely by fiat currency. Money is NOT, therefore backed by gold, or any other precious metal but, instead, is backed by faith. The money is, in other words, as good as people believe it is good. People are generally educated to regard money as a precious commodity in itself by virtue of the amount needed to purchase desirable and needed items.

By controlling the interest rate and the amount of money in circulation together with the use of a tax monitoring system, makes it easier to manipulate the economy.

Since the abandonment of the gold standard, economies around the globe have shown the apparency of a healthy economy, but in reality what has happened is that there has been little or no check on inflation resulting in a decreasing value of the currency, such as the US dollar so that it now requires many more dollars to purchase the same items as it did many years ago.

The value of gold has remain the same however with one ounce of gold still purchasing the same as it did 20 or 50 years ago.

What we use today is a system of fiat money. One glossary defines money as "money that is intrinsically useless; and suitable only as a medium of exchange. A more accurate definition perhaps is that money is, "an idea backed by confidence."

The main benefit of a gold standard is that it insures a relatively low level of inflation. In articles such as "What is the Demand for Money?" , we see that inflation is caused by a combination of four factors:

1. The supply of money goes up.
2. The supply of goods goes down.
3. Demand for money goes down.
4. Demand for goods goes up.

So long as the supply of gold does not change too quickly, then the supply of money will stay relatively stable. The gold standard prevents a country from printing too much money. If the supply of money rises too fast, then people will exchange money (which has become less scarce) for gold (which has not). If this goes on too long, then the treasury will eventually run out of gold.

A gold standard restricts the Federal Reserve from enacting policies which significantly alter the growth of the money supply which in turn limits the inflation rate of a country. This may give an inkling of the reasoning behind the removal of the gold standard.

So it would appear that the major benefit to the gold standard is that it can prevent long-term inflation in a country. However, as Brad DeLong points out, "if you do not trust a central bank to keep inflation low, why should you trust it to remain on the gold standard for generations?" It does not look like the gold standard will make a return to the United States anytime in the foreseeable future with the dollar being back by gold.

None of this should make any difference when it comes to buying gold of course. In fact, to buy gold is probably a better idea than to buy currency!

References:
http://economics.about.com/cs/money/a/money_demand.htm
http://www.j-bradford-delong.net/Politics/whynotthegoldstandard.html
http://eh.net/encyclopedia/article/officer.gold.standard
http://www.j-bradford-delong.net/Politics/whynotthegoldstandard.html
http://en.wikipedia.org/wiki/Gold_standard

OUNCE OF GOLD

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When you search around looking to buy gold, you might wonder, why there can be a different price for the same coin or gold bullion from one dealer to the next.

Firstly the spot price of gold is the value of gold per ounce at any given time. This is generally fixed by the market and you can see the current spot price of gold in the charts show at the top of this page.

Yet there is not only a variation in the price of gold from one dealer to another but the price always seems to be somewhat above the spot price. How can this be?

Lets say, for example, that the spot price for gold today is $787.50 per ounce. Various dealers will give you a selling price of around $830.80 for a one-ounce American Gold Eagle, $819.00 for the one-ounce South African Gold Krugerrand or even $826.90 for a one-ounce Canadian Gold Maple Leaf.

Since each contains exactly one ounce of fine gold, why should there be such a variation?

Well there are other factors to take into account when a dealer sells gold coins regardless of what they are.

Dealers will traditionally mark up what is called the "coin premium." If a dealer bought and sold gold coins at spot price there would be no covering the cost of the manufacture, the shipping the insurance, not to mention the dealers expenses and profit margin. All these need to be taken into account also. And they can vary too!

The mint will have marked up an additional price to the price of the spot gold to cover their costs and profit and this will be further increased by dealers as they acquire the coins and then resell them on. This is, in reality, no different to any other industry from food to car parts etc. Each person or company in the chain has to cover their costs and a profit margin.

Happily for us, the margins can be different between dealers depending on their costs, how much they acquired the coins for originally, as well as other factors such as the available supply of the coins, the rarity as well as market interest in particular types of coins. All this makes it well worth while shopping around.

So when you are scouting around to buy gold coins, do remember to do a little browsing before shopping, you never know what bargains you might pick up buying gold!

GOLD

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Gold has been consistently rising in value for the past year or so now and there seems little likelihood that this trend will diminish.

A number of reasons have been put forward for this sudden and dramatic rise. War, economic uncertainty, China and even India have all be assigned responsibility at one time or another. Even inflation and national debt, both which currently run extraordinarily high in the western countries, have had the finger pointed at them.

Regardless of the possible reasons for the steady rise in value of gold, it can be said with some certainty that gold is considered a good investment and a safe haven for one’s assets.

What gold should one buy and keep?

There are many types of gold one can buy.

One can invest in Gold Exchange Traded Funds (EFTs). EFTs are simply a certificate that represents a portion of gold held in a bank vault. One purchases a specific amount of gold and receives a certificate to establish one’s holding. As the price of the gold in the vault changes, the value of one’s holding changes correspondingly. The advantages of this system are that one can buy gold at virtually spot price. The disadvantage is that it is considered an investment and there are tax considerations such as profit taking and capital gains to consider.

One can buy Gold Stocks. Investing in the shares of a gold mining company can be profitable but the value of the shares depends on many factors, not just the value of gold. A mining company is projecting to produce a certain amount of gold over the life of the mine and this is what give it its value. If the mine falls short then the share value can fall short. Even an adverse movement in the currency exchange rate of the country in which the mine is situate can cause a drop in the value of the gold bring produced by the mine.

Gold Futures is another method of buying gold. Usually this is the arena of the trader rather than the investor, it is still a possibility but one fraught with danger as it is very easy to lose a lot of money trading in gold futures. This area is best left to the experts.

Buying Gold Bullion, such as gold coins or gold bars, has some advantages in that coins generally are legal tender and not taxed. They are easy to carry and store and also easy to dispose of or sell. Gold bars also have some advantages. Easy to carry, store and sell also. Sometimes there may be tax considerations with gold bars depending on the purpose declared for their purchase. When buying gold bullion also consider that there is an increase in price, above the spot gold price, as the dealer or supplier needs to pay for their expenses etc. However with the steady increase in value this may not be such a problem.

Gold has traditionally always been a good buy in any market and better in an uncertain market.

Probably a regular purchase of gold on a consistent basis might be a wise move, then the price one pays will tend to level out and with the current trend you will surely do well with your gold.

MY GOLD COIN WORTH?

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Sometimes, when you look at your prized collection of coins so painstakingly collected over many years you might ask yourself, "What are my gold coins worth?"

As the value of gold, and even silver, increases in value and the rarity of you coins increase, especially if you have collected those of a limited mintage or older, rarer coins in near perfect condition, it is very likely that your coin collection will have increased in value quite satisfactorily.

Provided of course that you have kept the coins in the same condition as when they were first purchased. Never taking them out of their sealed packaging so they do not get damaged or, in the case of silver, tarnished. Never clean them and keeping them out of direct sunlight.

Now there are various sites one can go to to get a good idea of the value of your coins.

What’s my gold coins worth?, and What are gold coins worth are two such sites and there are many others.

One can also check out the various coin auctions and eBay and see what the same coins are fetching on the open market.

Of course one can get a valuation done of various coins or even the entire collection and really one should on a regular basis at least yearly. This is a good idea for insurance purposes among others. In this way one would get a registered coin dealer to do a valuation and give you a written official result.

Whatever you do it is safe to say that the answer to the question, "What’s my gold coin worth?" is, "more than it was when I bought the coins!"

SELLING GOLD ON EBAY

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Selling gold on eBay is now subject to some new rules and it is wise to take note of them, especially for a power seller.

Nothing can be more devastating to a power seller than to have your products removed or, worse, be removed yourself, from selling on eBay for violating eBay's rules.

The new rules cover the terms "gold-plated," "gold-filled," "gold-electroplated," "gold overlay," and "rolled-gold". These may be used provided the alloy used for the plating is greater than or equal to 10kt gold. 

From now on sellers must spell out the qualifier - such as "plated" -- throughout the body of the description wherever the word "gold" is used.

According to eBay, "The term "gold vermeil" may be used as long as the item consists of a base of sterling silver coated or plated on all significant surfaces with gold, or a gold alloy of at least 10kt fineness, and substantial thickness and minimum thickness throughout equivalent to two and one half (2 ½) microns (or approx. 100/1,000,000ths of an inch) of fine gold. Sellers must spell out the qualifier "vermeil" throughout the body of the description wherever the word "gold" is used."

Sellers are still permitted to describe an item that is gold or silver in color as “gold-tone” or “silver-tone” in the item title (with or without hyphen is permitted) and throughout the description but sellers may not use the word “golden”.

Items that are not solid gold must not be listed in categories for solid gold, but should be listed in the "Gold, Plate/Fill" categories. This was actually effective from January the 4, 2005.

In addition all sellers are required to use industry-standard abbreviations in the item title, such as "gf", "gp", or "gep," when listing these items. 

So when selling gold on eBay it pays to take note of these new changes and ensure that descriptions of gold products and gold related products have a proper and accurate description for buyers.

WHEN TO SELL GOLD

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When to sell gold is an important question. Much depends on why you bought gold in the first place and why you have it.

If you bought gold coins for pleasure because they look nice then it is unlikely that you would even consider selling your gold. However if you bought gold bullion in the form of bars or antique gold coins or even proof sets, then it is quite likely you bought your gold with a eye to the future.

Then the question, when to sell gold, becomes an issue.

The value of gold, as against the various currencies, goes up and down. At the top of this website you can see the gold price in USD and Euros. See also the gold price per ounce page for the gold price in your local currency.

So the next question becomes, Are you holding gold for the short term of the long term? If the short term then the value of gold on a day to day basis will assume a bigger importance. If the long term then it is the long term trend that will be of most interest.

For some people when to sell gold is when they need the money. For others it is when the value of gold rises well above the value it was when they purchased it. So the reason why one is selling gold can be important too.

Taking all these factors into consideration and leaving nothing out will give one a good indication of when to sell gold.

It may not always be when you think. And of course one should consult one’s financial advisor if one is buying and selling more for investment purposes than as a coin collector.

Whatever the reason why you have gold coins, knowing when to sell gold is just as important as knowing when to buy it.

SELL GOLD BULLIONS

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Sometimes it can be necessary to sell some gold bullion.

This might be in a financial situation perhaps where funds are quickly needed, or to recoup an investment where the value of the gold bullion has increased sufficiently enough to warrant the sale.

Gold bullion can be in coins or bars. Coins would usually be gold coins such as South African Gold Krugerrands or Canadian Gold Maples or even US Gold Eagles, for example. Bars would be one ounce pure gold bars or perhaps smaller such as half ounce, or one tenth ounce. This sort of bullion is easy to buy, easy to store and transport and quite easy to sell.

How to sell Gold Bullion

All one needs to do is locate a gold or coin dealer in the country in which you are situated and sell the bullion.

You do need to ensure that you get a respectful price for the gold.

Firstly you need to find out the current price of gold (spot gold price) on the open market. You can see charts at the top of this web site that show the current value of gold in US dollars and Euros, the most common ways of displaying the value of gold. These are updated every few minutes so you can get the current price of gold bullion at any time.

You also need to find a reputable dealer who will give you close to the full value of gold. It is unlikely that any dealer will give you the full current market value of gold as they also wish to make something on the deal. They have their expenses and have to resell the gold bullion themselves.

Sometimes you can sell gold bullion online at auction such as eBay for example. This is fine provided you are prepared to take the risk of actually getting less than a satisfactory price for your gold if few people bid for it. It is likely, however, that many will bid as gold always seems to be much in demand. You can always place a reserve on the item to ensure that it does not sell for less than it should.

Selling your gold bullion is probably easier than buying it. If you do not need to sell it I would recommend you keep it. But if the situation warrants it then, yes, sell gold bullion and take your money!

SELL GOLD AND SILVER

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More and more people are becoming aware of the fact that they can buy and sell gold and silver.

The drop in confidence by people in fical currency, as governments print more paper money to solve the problem of inflation and debt caused by the printing of more paper money, also inspires them to seek 'hard' currency and asset storage in the form of solid gold and silver.

In times of economic crisis or heavy government control, people gravitate towards something they feel has a solidity and a stability proven over many years and that is usually precious metals and jewelry.

When the value of printed currency fluctuates wildly, the value of gold and silver still holds it’s own and an ounce of gold or silver still purchases the same, if not more, than an ounce of gold or silver did 10 or 20 years ago. Many people than accumulate gold and silver in the form of coins and small bars.

The question then arises, when should one sell gold or silver? Of course when the value is at its highest. This will most likely not happen for some time. Both metals are rising steadily as governments violate the most basic of economics resulting in increased debt and inflation. If one can get by without selling gold and silver, then one gets to retain one’s assets and most likely, even increase them as the value of gold and silver increases against the value of the printed dollar.

Gold and silver hold their value, regardless of the economic climate. An ounce of gold will always be an ounce of gold. It will always purchase what an ounce of gold purchases. The same with silver. Accumulating gold and silver coins and bars is an excellent way to store one's assets for the future.

Don Stott at Sell Gold and Silver gives a good rendition of the importance of when not to sell gold and silver.

The point then is, if you want to sell gold or silver, don’t, unless you absolutely have to do so to survive.

SELL GOLD COINS ONLINE

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So you would like to to sell gold coins online! Sometimes it can be necessary to sell some gold coins, either for economic or other reasons and this can easily be done online.

There are a few factors to keep in mind however, when selling gold coins online.

If you have been buying your coins from the same established dealer, then he would be the first place to go to sell them. He will have a record of the coins and know the current value and, as you are an established customer, he is more likely to give you a good price.

But you may have purchased your coins over time from here and there and not through one established dealer.

Then you basically have three choices. You can either sell to a dealer you can visit, sell to a dealer online or sell through an online auction.

Selling to a dealer you can visit is the easiest as you can take the coins with you and the dealer can give you a price on the spot. However it may not always be the price you want. With an online dealer you may have to send the coins in and wait for a price. Some dealers will offer a price unseen for popular established coins. But if you have coins that are rare or unusual the dealer will definitely want to see them before making you an offer.

Selling by auction requires a bit of thought and preparation if you wish to ensure the sale and to get the best possible price. As well as eBay there are also a number of coin auctions available online and it only requires registration and some study of the process in order to get started selling your coins.

If you like the excitement of auctions and are prepared to take a bit of a risk in terms of how much you will get for your coins, auctions are the way to go. People have been known to get fabulous prices by selling at online auctions. But if you do not want any fuss and simply want to offload the coins as quickly as possible then the dealer is the way to go.

Which ever way you go, browse around using google.com and look at what options you have available to you.

Gold coins are very easy to sell and to sell gold coins online can be a fun as well as a very profitable experience!

SELL GOLD COINS

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As the price of gold rises many people start to consider they would like to sell gold coins. They may have accumulated some gold coins over a period of years and now the price of gold is higher might be looking to make a profit.

Although it is not difficult to find someone to buy gold, of course it is better to keep ones gold coins as it looks very likely that gold will continue to rise as the dollar and economy drops into a decline. 

But ff you are keen to sell gold coins either because you have a large stock of them or because you are interested in trading or making a living selling gold coins, there are two basic ways you can do so.

Gold Bullion Dealer
First you can become a coin or bullion dealer. If you have a very large quantity of gold coins this might be the way to go. It would, however, require some considerable expertise in the subject of gold coins and gold bullion. There is some investment in time and marketing and, if you are selling on line, then a website and all that that entails. It can also require a heavy investment up front in additional stock and, if you are opening a shop, some expenses in setting up the shop. There is also the question of licenses and or governmental approvals which may be required in some countries. Also there are tax considerations to consider. What sort of company will you have, private or public, individual or a limited company. 

Yes if you want to be a coin dealer, there are many things to take into account just to sell a few coins.

Sell Gold Coins Privately
An alternative, if you have just a few coins or a one off sale, then you can sell your coins either to another individual, by auction or to a coin or bullion dealer. The individual will usually give you the best price, usually the spot or just above. But it is harder to find an individual who is willing to buy a simple gold coin. Auction is another possibility. You can get a good price or a not so good price depending on the current market and who is actually online bidding. The coin or bullion dealer will give you the spot gold value of the coin(s) you are selling less their margin as, of course, they want to make a profit when they resell the coins. 

Gold Coin Auctions
On the auction option. This has been taken up by many people around the globe, and a few have turned it into a business. If you enter the words ‘gold coins’ in the search field at eBay you will get something like 80 pages of gold coins for sale. The thing to look for here to find out what gold coins sell is to look, not so much at the coins for sale as the number of bids. Some coins will have heaps of bids and some very few if any. Those that do not have many bids are not so popular and if you have those sorts of coins you are not likely to sell then very well. If you have the same sorts of coins that are attracting lots of bids well you can be sure you will get lots of bids too and a good price for the coin.

To summarize, some pointers to look for here are:

What coins attract the most bids?
Who sells the most coins?
How do they promote and sell their coins?

As this is an established field it is an excellent way to find out all the ins and outs of selling coins. Being a public auction such information is exposed and, whereas a bullion or coin dealer might be reluctant to help you be a competitor in the business, here you can simply watch and observe the various ways coin dealers on eBay and other auction houses sell their coins.

Probably the biggest advantage is when you have a track record and ideally, are a power seller. But all power sellers were new once and everyone has to start somewhere. You may only wish to sell a coin or two or you may be keen to start up a career selling coins. Either way, provided you are honest and demonstrate this with your eBay feedback, you will surely sell your gold coins to your and your buyers satisfaction.

Should You Really Sell Your Gold Coins
Really one should only sell gold cons when one needs to. Gold is still under valued and has some way to go to hit the real price of gold and, although, you are likely to find someone who will buy gold there is more to be gained by keeping your gold coins and watching them increase in value.

GOLD PRICE DROPPING

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Sometimes you will see the gold price dropping. There has been a substantial rise and then, suddenly,it turns around and drops. Many people then frantically sell gold but in fact it is those that buy gold (from those selling of course) who benefit the most. They get the gold at a reduced price because, sure as eggs are eggs, the gold price will rise again.

Gold price has traditionally risen, in the long term, and with small dips occasionally, has enabled the astute to make a tidy profit here and there. Anyone who has purchased gold over the past 10 years and not sold it, will be sitting back congratulating themselves with a proverbial pat on the back and a somewhat healthier asset balance.

More importantly perhaps, the value of gold has not changed over the past 50 -100 years. How could this be? You ask. It is simple. The value of gold does not change. But the value of the currency you use to buy and sell gold does. An ounce of gold will still purchase the same goods now as it did fifty or one hundred years ago. But you need an awful lot more dollars to make the same purchase with currency.

Keeping one ounce of gold for 10 years say and the cost of one ounce of gold in dollars at the time of purchase will quickly show the disparity in the value. One ounce of gold 10 years ago was around 300 dollars per ounce. These days it is running at around 750 to 850 dollars an ounce. but whereas the purchasing power of 300dollars has reduced over 10 years, the purchasing power of an ounce of gold has remained stable, in fact increased slightly.

Examples of inflation and the drop in the US dollar over the years are demonstrated below:

A postage stamp in the 1950s cost 3 cents; today's cost is 41 cents - 1,266% inflation;
A gallon of 90 Octane full-service gasoline cost 18 cents before; today it is $3.05 for self-service - 1,870 % inflation; 
A house in 1959 cost $14,100; today's median price is $213,000 - 1,400% inflation;
A dental crown used to cost $40; today it's $1,100 - 2,750% inflation;
An ice cream cone in 1950 cost 5 cents; today its $2.50 - 4,900% inflation;
Monthly government Medicare insurance premiums paid by seniors was $5.30 in 1970; its now $93.50 - 1,664% inflation; (and up 70% past 5 years)

However one ounce of gold continues to purchase the same regardless of inflation since it is not the cost if living that has risen but the value of the dollar than has dropped.

In this way it can be seen that it pays to retain at least some assets in gold, regardless of any day to day or week to week fluctuations. In fact when the price of gold drops slightly, that is a good time to increase ones holdings in gold by taking advantage of a temporary lower price.

So, even with the gold price dropping, to buy gold can still be seen as an astute and successful action!

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