Monday, January 15, 2018
COINS OR BARS??? WHICH IS BETTER AS AN INVESTMENT?
I have had many new customers ask me what is better
to buy for an investment--bars or coins.
In order to compare what they cost and their desirability, I have done some
research online comparing prices---premiums--availability, etc.
We are going to look at the American Eagle, Canadian Maple Leaf, and the South
African Krugerrand for the coins. We similarly are going to compare the Credit Suisse,
the PAMP bar, and a PERTH Mint 1 oz bar.
I searched a major online coin dealer--and here are the prices/premiums (all gold)
1 oz gold eagle SPOT + $68 1 oz Credit Suisse Bar SPOT + $40
1 oz Krugerrand SPOT + $42 1 oz PAMP Bar SPOT + $38
1 oz Maple Leaf SPOT + $48 1 oz PERTH Mint Bar SPOT + $38
All of the above contain 1 Troy Oz of gold.--But the American Eagle and the
Krugerrand contain an additional alloy (Silver/Copper) to make the coins more
wear resistant. This means that those 2 coins weigh 33.933 grams--1 Troy oz is
31.1033 grams. So those 2 coins have 33.933 grams of 22 karat gold --but the
amount of 24k gold is the same in all the coins and bars.
The coins are "RANDOM YEARS" --The newest coins will be higher in price.
Also, the respective governments (USA, Canada, and South Africa) guarantee the
content of the three coins. The Australian government guarantees the Perth Mint
Bar. The Swiss bars (Credit Suisse and PAMP) are guaranteed by the respective
banks.
According to hardassetsalliance.com (Hard Assets Alliance) "All else being
equal, it is easier to sell a 1 oz. gold eagle coin than a 1 oz. gold bar."
Learn more here!
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