Gold - How to make a profit by going against the herd

Gold - How to make a profit by going against the herd Humans have been fascinated by gold for thousands of years, by the way it never tarnishes and by its unique color. Sadly, gold is useless in engineering terms, except for plating electrical contacts, to ensure they never tarnish and lose their conductivity. You will find gold plated contacts on good quality hi-fi components. The metal is too soft, with too low a tensile strength to be used for much besides necklaces and rings. As an investment though, gold is a different story altogether. Gold prices fall and rise, according largely to the degree of fear that people have about the future. When war is imminent, gold prices soar, as more people buy gold. They are buying gold for several reasons. The gold will be there regardless of what happens to the currency and because war tends to lead to high inflation, paper money becomes worth less and less. People outside the war zone buy gold because they see the price going up and have they think it will keep going up and they will be able to sell at the top of the market and realize their profits. also buy gold because When economic conditions are good, inflation low and employment rate high gold prices fall. Gold prices fall because it has no intrinsic value, only the value attached to it by people’s fear. In calmer times, it is possible to invest in shares and gain from the rising share prices that usually accompany economic growth. Conclusion: – Go against the trend - buy gold when everyone is saying to invest in the stock market. Sell gold when things are looking grim and there are many buyers out there. Until recently, many countries made it illegal for individuals to hold gold bars or bullion. Individuals could buy gold coins and other items however. The South African Krugerrand was minted to exploit this opportunity and to earn much needed foreign exchange for that country during the years of economic sanctions. Nowadays you can buy gold, silver and platinum coins in many denominations, including Canadian and US dollars, sterling crowns and sovereigns.

Coin Collection – The Art Of Numismatics

Coin Collection – The Art Of Numismatics The first known coin collector was Petrarch, who lived way back in the 15th century. A century later, Hubert Goltz visited a number of coin collectors throughout Europe and estimated that were approximately 960 collections in total. Numismatics gradually became a favorite hobby of royalty. Francis I of Austria wrote about his collection of gold coins in 1756. The British Museum established one of the first coin catalogues. From this have emerged more than 100 publications devoted to coin collecting. Today the word coin refers to standard issue, commemorative or presentation pieces duly authorized by the federal mint. This excludes coins privately minted coins. The most common substances used in making coins are gold, silver, copper and nickel. Alloys, such as copper and nickel, are also used to produce coins, such as the US 25 cent piece, that are less expensive to produce than single metal coins. There are many different types of coins for collecting. One can collect a specific denomination by date of issue, country of issue, mink mark, proof sets, uncirculated condition, metal content, design or mint errors. It is ultimately up to the collector to decide what to collect. Once the collector has decided on which area to collect, it’s time to get started. One area that is common today is the US state quarter. They are found frequently in pocket change. Commercial booklets are available to store the quarters. If a collector just wants all 50 state quarters, they are relatively easy to find. Because so many have been issued, the value of circulated coins is low. Coins in circulation get nicked, scratched and otherwise worn. To have a collection that will increase in value over time, a collector should consider uncirculated mint coins. These are generally available when a coin is first released and are not worn in any way. Their value is higher than coins in circulation. Coins issued in different metals than the regular issues are also collectible. Prior to World War Two, pennies were minted in copper. When copper was needed in America’s war industries and could not be spared for coinage, the government authorized the use of steel to produce pennies. After the war, copper was again used to produce pennies, enhancing the value of the steel pennies. Today, it costs more than a penny of copper to make a penny. Congress is exploring the use of other metals to make pennies. Should this occur, the last copper pennies would increase in value, as would the new pennies. Design changes can also affect the value of a penny. For many years, pennies with wheat designs on the reverse side were issued. The design was changed, thus increasing the value of the old design. A word of caution: all coin values are based upon the availability of the coins and their condition. Coins that are readily available or worn may increase in value over time, but not as much as mint, uncirculated varieties. There are many places that a coin collector can go to find coins. There are coin clubs, dealers, online and on television auction sites, and even companies that specialize in mail order purchases. You don’t have to be rich to be a coin collector. Choose your area of specialty and then jump in.

The History Of Gold As Money

The History Of Gold As Money Turning Gold Into Money Gold is one of the most dynamic elements of the modern economy and some might find it funny that the oldest form of valuing physical commodities is still thriving today. The first gold coins were produced in 700 BC and since then the precious metal has been used as the primary exchange element. The fact that gold was scarce and highly valued made it the perfect means of exchange, regardless of what the exchanged items were. The history of gold turning into money spans over a period of 2600 years and the turning point in gold’s history is the year 1971. How Did Gold Become Paper? Throughout history, gold and silver coins went through a process of debauching. Such coins began to be created out of gold and other metals, thus making the values of the actual coinage fluctuate in time. The process of turning physical gold into money began when goldsmiths, who used to store gold for other society members for a fee, started to issue receipts for their storage. The receipts idea spread quickly as it was more convenient than carrying the actual metal with them, so people began to get accustomed to the idea of paper money. Goldsmiths gradually turned into bankers and the currency evolutionary process continued developing. Why Did The Gold Window Close? The 15th of August 1971 is the day when the “Gold window” was closed by the American president Richard Nixon. From that moment on, paper money could no longer be converted to gold, a fact that took the precious metal out of currency exchanges. In order to understand why the situation with gold in the economy reached this point, let’s travel back in time to the moment when bankers saw the opportunity of replacing metal with paper money. Since they had the power of issuing the receipts for gold, bankers thought of producing more receipts than the amount of gold they held. But, as you would expect, this practice also became popular and bankers soon started lending these receipts to the early governments and to the monarchs of the epoch. New Acts And Regulations Concerning The Use Of Gold England was the country where bankers created the first central bank. The main purpose of such a bank was to lend money to monarchs, but it also served as protection for those bankers who issued more money than they could redeem in gold. However, it became obvious that this practice had a negative impact on the country’s economy. This lead to the apparition of the “Peel’s Bank Act”, which stated that banks are not allowed to issue more paper money than the gold they actually had in reserves. Thus, the importance of gold as a decisive factor in the global economy remained high all throughout modern financial history. What Do You Know About Modern Gold? An interesting evolution of gold prices began in 1934, when gold was priced at $ 20. In the period until 1971, the gold price remained around $35. However, with the changes that occurred in the global economy, gold prices reached $300 and they remained above or very near this threshold. Various factors in the geopolitical world had their influences on the evolution of modern gold prices. Can Gold be Controlled? Do you ever think about gold when you are going to work or while shopping? Even though our modern society perceives gold more as a fashion item, nations still rely on the power of the precious metal in order to keep their economies balanced. We might not see gold in stores, while paying our taxes, or while taking credits from a bank, but it is an element profoundly involved in all these actions. It is fair to say that, throughout human history, we were often the ones being controlled by this precious metal, and not vice versa, as most people believe

How to Grade Your Coins

How to Grade Your Coins A "grade" is described as a shorthand designed by coin experts (numismatists) to reveal a coin’s appearance. Simply put, if a certain coin collector tells another collector that he owns an uncirculated Charlotte 50 half eagle, both should already have a concept of the coins appearance without even seeing it, because of the claim of its grade. Some disclose that designating a grade to rank or categorize a coin is more of an art rather than science, since often it is extremely subjective or biased; this applies particularly when working on “Mint State” coins where little differences, in terms of grade, make so much difference in the price. Grading can be learned, studied and applied with a predictable and known outcome that eventually depends on judgment, not feelings. Like any language, science, sport, or research, it is best to learn and understand coin grading one component at a time, through serious study and experience. Today, most numismatists use the “Sheldon grading scale”. While there are those that complain of "too many grades", most experienced coin graders recognize and appreciate the fact that there is a wide range in features between ranges. Strike This is the method of stamping or imprinting a drawing or a symbol onto a blank. Depending on the coin’s design, it can either have weak or strong strike. An example of this would be the “Type II gold dollar” on which both sides (front and back) have the highest strike that is perfectly aligned, meaning, these designs require weak strikes. Generally the strike is not a key factor in establishing the coin’s grade except when it is included in a series where the value is connected to strike. Preservation of the coin’s surface The number of coin marks as well as where they are placed is a significant element in establishing the grade. While there is no fixed formula on the number of coin marks that sets its grade, there are several regulated standards regarding the significance of the location or positioning of a scratch. For instance, a coin having a deep scratch that it is not easily visible on its reverse (back) side will not be strictly penalized. However, if the same scratch was positioned on a noticeable or obvious central point on the front, such as the cheek on the Statue of Liberty, it would be penalized much more. Patina or luster A coin can have a variation of textures on the surface, influenced by design, the metal that was used and the “mint of origin”. Textures can include frosty, satiny, proof-like and semi-proof-like. When examining the coin’s surface in terms of grade, two things should be looked at; the quantity, or what is left of the original skin (has to be intact), and the location and amount of marks. Luster is important especially when determining whether a coin is either circulated or uncirculated. A coin in Mint State technically; is free of abrasion and wear and must not have significant breaks in its luster. Color This is a very subjective element in determining coin grade. For instance, a “gold coin” showing dark green-gold pigmentation may be unattractive to one collector and attractive to another. As gold is moderately an inert metal, it is not prone to much color variance as copper or silver. Although wide ranging colors may exist in gold coins. Almost all of US gold coins had been dipped or cleaned, therefore not anymore displaying their original color. As coin collectors become knowledgeable, most of them are attracted and fascinated to coins having their natural color. In most coin series, it is nearly impossible to discover original coin pieces. Eye attraction or appeal Color, luster, strike and surface marks come together, comprises “eye appeal”. Note that a coin having superior “eye appeal” can be strong in one aspect, such as possessing exceptional luster but not quite as strong in another aspect, such as not so good color. A coin that is undesirable in one aspect yet good enough in all the other aspects can still be distinguished as “below average” in “eye appeal”. Knowing how to grade a coin is very important so that one can have an idea of the value or price of the coin that he is buying or selling. When new to coin collecting, be sure to ask the help of an experienced collector or dealer when buying or exchanging your coins.

The History Of Coin Collecting

The History Of Coin Collecting Origin of Coins and Numismatists The hobby of coin collecting has presently taken an extraordinarily unique shape. Every day hundreds of new collectors are joining the numismatic community. The total numismatist population worldwide has quickly surpassed a few million. The experts are professional collectors, but it can be said with guarantee that a great section of the newcomers are entering the world merely as casual collectors of coins. This article discusses interesting facts about coins and numismatology. The hobby of coin collection started with the minting of the first set of coins in Asia Minor nearly 650 BC, prior to which there were gold and silver ingots for legitimate use for the tenders. During those historical periods, businesses were based on a typical barter system, where in each transaction the goods were exchanged with the carefully weighed precious metal – especially gold or silver, since coins were not yet in use. Unscrupulous dealers tried to steal things by passing out a lower quantity of metals. Therefore there was a desperate need to bring about certain alterations in the socio-economic conditions, which consequently lead to form stronger governments with more effective statutory regulations. Coins then came into existence and were printed on the basis of the standardized weights of the precious gold. Within the next century the idea of coins became the principle medium of business. Vivid History of Numismatics The coins of a nation are perhaps the most appropriate items available to provide the best perspective of a nation – being the most admired treasure of the nation’s historical, social, and economic information. This is one of the most popular reasons why people get started in collecting both domestic and world coins. In the modern day, the activity of numismatics is considered the collection of a wide range of artistic works of the past, and simultaneously the act of collecting the valuable legal tenders. Researchers have worked long and hard to conclude that the act of collecting coins was started by the father of the Renaissance – Francesco Petrarca, who has also written certain facts about his collections. The popes during the Renaissance period were very interested in this hobby, gradually turned into a passion, and they collected coins for the art and value. However, evidence has also been unearthed regarding the fact that the Roman emperors used to pay prices higher than the face value for the coins that were not in circulation. Numismatology is actually the “hobby of kings” – a title given by those enthusiastic renaissance kings. To summarize, the hobby of coin collecting has presently taken a very interesting direction. This article discusses interesting ideas and information about coin collecting and numismatics. Coin collecting as a hobby started with the minting of the first set of coins in Asia around 650 BC, prior to which there were gold and silver ingots commonly used for trading among vendors and customers. Within the next century the coins replaced other forms of barter and became the principle medium of transacting business. Popes during the Renaissance period were very interested in collecting coins as a hobby, which gradually turned into a passion. Eventually, they collected coins for the art and the value of the investment.

Design Types of US Coins and Coin Collecting

Design Types of US Coins and Coin Collecting Coin collecting is a fun hobby that anyone who has the time can do. A coin’s history and its development can be learned by collecting them. At one point in time, between 1838 and1933, the United States issued gold coins for circulation. The Liberty Head bust was used as the design until 1907. The design was then changed to the Indian Head and Saint Gaudens motifs until 1933 when the “Great Depression” started. This prompted the recall of the coins which makes it very rare to find any of them today. The most valuable coin in the world is the 1933 Double Eagle. This was a $20 gold coin that was made in the 1800’s after the California gold rush. This coin was not allowed to be used in the 1930’s and when this coin was auctioned in 2002, it sold for nearly eight million dollars. Since gold coins are hard to find, most collectors select other coins. One type of collection you might consider is the one made up of coins that are flawed when the coin was minted. If you can find a coin with a misspelled word, a wrong date, off-center characteristics, or double-punched marks, these coins are valuable. Such mistakes can increase a coin’s value from $50 to a $1000. Coins that were only issued or circulated for short period of time also make good collectibles. A coin collection is at its best if it is focused on a certain coin. A collector can choose from pennies, nickels, dimes, quarters and dollars. Another way of collecting is disregarding the types of coins but concentrating on a certain time period. Coins have different mint marks and collecting those that were struck in the same location can also be interesting. The important thing for hobbyists is to stick to the collection until it has been completed. For a good start subscribe to a coin publication such as Coin World or Coinage Magazine for information on the types of coins that you might want to collect. The internet or a local coin shop can also help expand the search for those coins that can’t be found in your locale or out of state. Building a coin collection will take a long time - months or even years. The United States has produced so many coins that it is hard to keep track of them. By deciding on the coin(s) you want to collect, the challenge to complete that collection begins.

Tips in Buying Bullion Coins

Tips in Buying Bullion Coins What are bullion coins? These coins may have high values because they are not only limited; but also they may have been found in shipwrecks, or they may come from the ancient times. Bullion coins are the type of collector’s items that many people look for. The silver bullion could be the most well known type of bullion that is selling very well in the internet aside from those that are to be considered to be most expensive and valuable items in the world. Some high priced coins that are displayed on the internet include the silver ingot. The silver ingot was said to have been found in the Spanish ship Atocha that sank in the ocean. This ship was found to contain treasures and artifacts including silver ingots. Others claim that the silver ingots were recovered from an old Colorado Mining area. Coins were found everywhere and were said to have been hidden by the miners. The silver Maple Leaf Coins, which are officially sealed, are also popular among collectors. These coins came from the Royal Canadian Mint and include the Walking Liberty half-dollars and the dealer roll first-strike 1994 U.S. Eagles. These items were a collection of the Franklin Mint which had more than 100 masterpieces in his memorabilia. Most bullion collectors prefer the gold billion. Some famous bullion gold coins include the gold Krugerrands, which are from South Africa. The European Gold Crowns were released from the late 1800s to the early 1900s. Other items include the Canadian Maple Leaf Coins and the United States American Eagle Coins. British Sovereigns are also seen on the internet as are the Swiss Helveteas and the French Roosters. The awesome 10-ounce Swiss gold bar, China gold panda set, and the American eagle proof set coins can also be found and are considered to be the most seen coins on the internet. There are gold bullions found in the American Eagle set, Mixed Lots, Rounds, Bars, and any other similar categories that are found on some sites n the internet. A type of bullion that is not well known is the Platinum bullion. It is less researched on the internet because the demand for it is not as great as the silver and gold bullions. Platinum bullions can be purchased anywhere: some of them are the French Statue of Liberty coins, Eagle sets, and the Koala Proofs. The World Trade Center has also offered some Platinum bullions like the Englehard platinum bar, crucible dish made of platinum bullion, and the Johnson Matthew Year of the Dragon coins which were recovered from the safety vaults of the building when it collapsed. These coins can be considered as thoughtful gifts aside from their being valuable since they can be kept as a souvenir from the person who gave it. A bullion bar that features a happy birthday greeting can be a thoughtful gift for a friend’s birthday especially if the bar has the date of the birthday on it. Some people also use them for their anniversaries as their gifts to one another - they search for those bullions that have the date of their engagement or the wedding year. Some brides also ask their groom to find her 24-karat gold flakes or silver flakes as her chosen token for their wedding. Coin collecting of this type can be very expensive, especially when buying bullions, but here are some tips that can guide a person in his search for affordable bullions. 1. A person must be sure of the type of bullion he would like to purchase before ordering or buying. 2. He must ask himself, or the person he is buying the bullion for, what bullion he/she prefers and ask if they would like to come with him when purchasing the bullion. 3. A person must figure the delivery costs and add them to the agreed price. 4. A person should be sure that the seller would contact give him a delivery for the item if they have ordered it on the internet. 5. He should never make the payments using instant money transfer firms. 6. It is important to know the seller’s background and reputation in the business. A person can purchase any bullion that he prefers. The idea of giving bullions to a special loved one or friend can be very thoughtful and it will serve as memorabilia that will be kept throughout the years.