The Best Information on 1878 silver dollars

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Value of Gold Bullion Coins

By Misha Kerogazov

Bullion coins by definition are the coins minted for investments and not for circulation. They are valued for their precious metal content rather than for their numismatic value.

The value of gold bullion coins in its essence is the gold value of a coin plus the premium. The gold value varies with the time of course but it is what it is on the gold market, which is around $30 per gram at the present. The premium on the other hand is a very subtle subject and can be affected by many factors. And we're going to have a look at some of them.

One of the most usual factors is the coin grade. This one can be split into the coin finish and the coin grade itself. The finish for gold bullion coins can be either brilliant uncirculated or proof. Proof coins usually have higher premium than their brilliant uncirculated counterparts. The grade of a coin is basically its condition. And of course, better condition means higher premium. The grade can vary from PO-1 (pure) to MS-70 (perfect) for normal coins and from PF-01 to PF-70 for proof coins.

Another factor that can affect the value of gold bullion coins is the coin mintage, or the number of coins issued in any particular year or in total. This one is not as crucial for bullion coins as for normal ones because usually bullion coins are minted in great number, but for some coins and for some years it can be significant. It is not an issue of course for the coins that either don't have a year (which is quite rare) or have some set year in the past (like Mexican Pesos or Austrian Ducats).

And the last factor that can affect the value of gold bullion coins is actually the size of a coin. It may sound odd, but smaller coins usually have higher premium.

The first modern gold bullion coin was the South African Krugerrand minted in 1967 and weighed exactly 1 troy ounce (31.10 g). The value of the coin was basically its gold value plus very small premium (3-5%). As the coin proved to be very popular, other countries started minting their bullion coins and at the later years started producing coins as fractions of the troy ounce - half ounce, quarter, tenth, and finally twentieth, which is just about 1.5 g. The premium of the latter one can be up to 50% of the gold value. So, if you're planning on investing into gold bullion coins, consider buying bigger ones.

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I hope that you feel now much more comfortable about the value of gold bullion coins and if you feel adventurous, and want to have a look at some of the gold bullion coins and may be even make a few bids, click here.

More Numismatists Info

The usual benchmark for the price of gold is known as the London Gold Fixing, a twice-daily (telephone) meeting of representatives from five bullion-trading firms. Furthermore, there is active gold trading based on the intra-day spot price, derived from gold-trading markets around the world as they open and close throughout the day
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There are two types of coins, those bought for their rarity or numismatic value and those bought for their precious metal bullion value. I recommend buying a one troy ounce bullion gold coin because they are much more affordable than numismatics and also for the same price you will get much more gold metal content which is the whole point of buying the coin (gold attracts wealth). Now that we have decided to buy a one troy once bullion coin, there are many selections. There are 22 karat coins and also 24 karat coins. Due to their durability, I recommend buying a 22 karat coin because they are much more resistant to nicks and scratches. The two best 22 karat coins to invest in are South African Krugerrands and US American Eagles. If you decide to go the 24 karat route, US Buffalos and Canadian Maple Leafs are the best choices. All four of these coins are very popular and readily exchangeable at coin dealers all around the world.
Buy cheap silver dollars for a great investment.

Does the silver coin pass a magnification check? Although the methods listed above will usually enable you to rule out most fakes (especially the weight test,) sometimes close examination under a strong magnifier settles the matter. Look for silver plating that failed to fill into tiny spots and crevices. Look at the edge of the coin to see if the plating is visible where the rim meets the side; also look between the reeding. Sometimes just looking at the fields under 10x is enough to condemn the silver coin as a fake, because the fields may appear rough, or have spots of copper or other non-silver impurities.
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Most U.S. $2 Federal Reserve Notes from 1976 and 1995 are worth no more than face value. Original packs from the Bureau of Engraving and Printing carry a premium, as do Star Notes which typically sell for $10 to $20 in Uncirculated condition for the common district banks. Star Notes from the Kansas City and Minneapolis district banks (I-* and J-* notes) are very scarce, and sell for more than $100 in Uncirculated condition.
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Any highly experienced coin authenticator will tell you that they often can't tell you why a given specimen is fake, (short of doing a full objective analysis, as explained below.) All they can say is that it doesn't "look right." Learn what the genuine silver coin looks like, and when you get that little red flag waving in your head that something looks wrong, even if you can't put your finger on exactly what is wrong, trust your senses and don't buy the coin!
Buy Mexican gold coins.

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