The best approaches to gold investing online. Where to go and how to approach online investing in gold coins.
Why Invest in Gold?
Gold has always seemed to play a pretty big role in world history. Many cities exist or don't exist today because of the discovery of gold or because of the greed inspired by gold.
At one point in time all the currency in the United States was backed up by gold.
Investing in gold and silver is typically done as a safe-haven against political, economic, social, currency-based or other crisis.
Typically when the economy is struggling the price of gold and other precious metals goes up dramatically.
How to Invest in Gold?
There are different approaches to take. You should make sure that the approach you take is right for you and fits your comfort level. Some possibilities include:
Directly through gold coins or gold bullion investing
Indirectly through investing in gold options, investing in gold stocks, gold exchange traded funds, accounts, or certificates
Investing in Gold Coins
My personal preference is coin ownership. I really enjoy having something to hold and see. In the past I have done some gold investing online by buying gold through online auctions.
A gold St. Gauden's gold coin I spent $500-$600 was worth $1,200-$1,300 two years later.
For the beginning investor, it would be a good idea to start very simple. Here is a coin that I am familiar with that has worked well for me: $20 Saint-Gaudens Double Eagle.
The Saint-Gaudens is a United States coin that was minted between 1907 and 1933. The coin is 90% gold and 10% copper. It has .9675 ounces of gold altogether.
Besides having value because it contains nearly one whole ounce of gold, the Saint-Gaudens coin also has some value because it is a popular collector's item.
When buying this coin, you can expect to pay roughly what an ounce of gold is currently going for.
I actually used eBay to buy my coins. Whatever gold investing online approach you use, make sure that you are buying the coins from a safe reliable source with a past history of honesty and reliability.
To further assist you in determining the value of a specific Saint Gaudens double eagle gold coin, refer to this collector's price guide given by Numismedia.com.
My Experience Investing in Gold Coins on eBay
As a reference point, should you decide to try what I did: In the year 2006, I bought two Saint Gaudens double eagle gold coins on eBay. Altogether they cost me just less than $1,200. In March of 2011, I sold the same two coins on eBay for $1,580 and $1,600, totaling $3,180. Seller fees from eBay were $101.12 and $92.81 for PayPal, leaving me with an increase of $1,786 in just 5 years.
This worked well for me this time, but as a wise man once said, "There are no guarantees".
Historic Gold Investing Prices
I made a couple of charts for you to reference to help understand where the price of gold has been in the past.
