Many new investors are looking at solidifying their portfolio by using precious metals as a support for hard financial times. This method of diversification is a great way to help stabilize a shaky portfolio and is also used to start a new investor on a solid road for the future. There are so many conflicting opinions about what type of coin to purchase and how to invest in the commodities market that many new investors are understandably confused.
The answers to these questions are simple and easily covered with help from the December 18th article from the Orlando News Sentinel. The article stated that, even though the economy seems to be on an upswing based on recent reports from Wall Street, investors will still want to protect their capital by investing at least a percentage of their portfolio into precious metals. This is because, over the last several years, precious metals have been the only commodity that has consistently performed above the market average.
The reason for this is that gold and silver retain at least a part of their value, even if the market crashes. This is because so many industries have to have precious metals in their manufacturing process that the metals will always be in some type of demand. But what does this mean to the new investor and how do you invest in gold without purchasing large amounts of the metal itself?
The answer is simple; the federal government produces coins that are called gold bullion coins. The official gold bullion coins of the United States are the American Eagle Gold Coins. These coins are guaranteed for weight and content of gold by the federal government. They come in several different denominations, but the actual value on the front of the coin does not convey the actual value of the metal itself.
American Eagle Gold Coins come in denominations of five, ten, twenty five and fifty dollar amounts, but the coins themselves are worth a lot more than the stated value. The value of the coin directly reflects the actual weight of the gold, with the five dollar coin weighing in at one tenth of an ounce and the fifty dollar coin being a full ounce.
All American Eagle Gold Coins are considered to meet the standard for gold purity that was set by Congress. This standard for purity is that the coins are 22 karat or are 91.67 percent pure gold. There is some copper and silver mixed with the coin to make the coin more resistant to wear.
All in all, the American Eagle Gold coins are still an excellent way for new investors to benefit from the current metals market.