Silver Bullion

When buying silver bullion, just as for buying gold bullion, remember coins are a great form of a precious metal to own.  Their purity is guaranteed by the government that issued them, so they are very liquid.  No assay is required to sell coins.  And, regardless of which country issued the coins, they are in a sense international in value.

                 Like gold, not all silver coins are equal.  Even if they contain 1 ounce of silver, the silver, like gold, is never completely pure.  Silver is also too soft of a metal to be coined in a completely pure state.  So some minor impurity must always be present.  So most bullion coins are 0.999 fine silver.  Canada is the exception.  They make 0.9999 pure coins, and while there is no practical value of the slightly more pure metal, people will often pay a premium for the extra nine.  And what someone else is willing to pay is what really determines the value of a coin.

                 A quick ranking of coin prices at the time of writing is American Eagle, Canadian Maple Leaf, Austrian Philharmonic, and the Mexican Libertad.  Of the less abundant, the Britannia is perhaps the leader, the Australian kangaroo, the Australian Kookaburra, the Australian Lunar, and the Australian Koala.  South African makes a silver Kruggerand, but this coin appears so rarely in Online auctions that it is difficult to place a value.  Australia mints numerous quality silver coins which vary from year to year, and some, like the Lunar Dragon may bring more than a Britannia.  Coins like the Britannia and all of the Australian coins are frequently changed, so they command a numismatic value over the intrinsic value of the silver.

                 Australia and Canada often enhance their coins with privy marks, small icons that honor someone or something.  These privy marks generally add to the value, since they are minted in smaller quantities than the coins without them.

                 Silver coins come in many sizes, the more common being half ounce, one ounce, and two ounce.  However, for the serious investor, Australia makes ten kilogram silver coins.

This article is being made available from Black Spaniel Gallery at http://blackspanielgallery.comby the author.  Links to major English speaking mints are available at Black Spaniel Gallery.

Gold Bullion

When buying gold bullion remember coins are a great form of gold to own.  Their purity is guaranteed by the government that issued them, so they are very liquid.  No assay is required to sell gold coins.  And, regardless of which country issued the coins, they are in a sense international in value.

                 Not all gold coins are equal.  Even if they contain 1 ounce of gold, the gold is never completely pure.  Gold is too soft of a metal to be coined in a completely pure state.  So some minor impurity must always be present.  This is determined by the karat number, with 24-kt being the purest gold, while lower numbers contain more impurities.  Many countries, but not all, issue 24-kt gold.  But the coins differ is color.  This is because the impurity is not always the same, it is dependent on the source of the gold.  And copper is chemically so close to gold it is particularly difficult to refine out.  So, with gold coins from mines around the world, there is a slight difference in value.  This is caused by both the quantity minted and the particular content of coins from a region.

                 A quick ranking of coin prices at the time of writing is American Eagle, Gold Buffalo, Canadian Maple Leaf, Austrian Philharmonic, and South African Kruggerand.  Australia mints numerous quality gold coins which are not listed because they also have high numismatic value, and they include the lunal, nugget, and kangaroo series.

                 For the investor with limited resources, many countries mint smaller coins that are fractions of an ounce.  Common fractions are 1/25, 1/20, 1/10, 1/4, and 1/2.  Canada has a 1/15 ounce version of the Maple Leaf, but it is rather rare.  If you buy from an Online auction site be careful.  Auctions for 1/25-ounce coins often go higher than those tor 1/20-ounce coins.  The higher the denominator in a fraction, the smaller the number, but if just a few people do not understand this they may, and usually do, bid the smaller coin up due to the higher denominator.  Be careful.  The smaller coins rightfully have a higher premium over spot gold prices due to minting cost, a the 1/25-ounce coin is certainly worth less than a 1/20-ounce coin.

                 Because the minting cost can become a larger percentage of the cost with smaller coins, it is probably better to buy a one-ounce coin rather than several smaller coins that collectively are one ounce.

                 Another thing to remember is gold is weighed in troy ounces, which are heavier than conventional ounces.  When checking weight, use a scale that weighs in troy ounces.

                 We have a link to the Perth Mint of Australia if you wish to look for quality collectible coins in gold, and other fine dealers in gold bullion if you are basically interested in gold for the intrinsic value of the metal itself.

                 If gold is too pricy for your current needs, consider silver.

This article is being made available from Black Spaniel Gallery at http://blackspanielgallery.comby the author.  Links to major English speaking mints are available at Black Spaniel Gallery.

COIN COLLECTING BASICS

Coin collecting can be a great hobby, provided some basics are understood first.  This article addressesproper handling, grading, and should that coin be slabbed.

Proper Handling:  Coin value is determined by both rarity and condition.  It is a good idea to protest your coins by proper handling.  The rules are simple.

Avoid handling your coins as much as possible, and when it is necessary, always hold the coin by the edge.  A small amount of abrasion can reduce the grade of the coin.  Also, no matter how well you wash, there is always something on your hands, which may discolor a beautiful coin.

Store your collection properly.  If you have plastic capsules that fit your coins, that is probably the best.  Soft coverings can be damaged, and keeping coins air tight is important.  The air contains contaminates that can damage your coins,

Always have your coins encased before speaking.  Small amounts of saliva can be the source of unsightly spots in the future.

Do not use envelopes, or any paper products, unless the paper is specifically manufactured for use with coins.  Paper is often made using sulfuric acid, which can seriously damage coins.

Never clean a coin!  Collectors prefer the natural look, and cleaned coins quickly lose value.  If you think it will not be noticed by an expert, you are mistaken.  The appearance of a coin made from pressing dies des not have those streaks associated with abrasion.  When magnified, coins tell the story of having been cleaned.  (This is written with the understanding ancient coins that were found buried in thick soil must be cleaned to even be able to tell which coin is there.  Ancient coins are the exception to the never clean rule.)

Grading:  Grading standards go from AG through Perfect.  If you are starting a serious collection, avoid the lower grades unless the coin is essentially unavailable or unaffordable in higher grades.  AG (about good), G (good), and VG (very good) all show excessive wear.  F (fine) and VF (very fine) are better, but still have a lot of wear.  EF or XF (extra fine) and AU (almost uncirculated) are lower end quality grades for very old coins.  BU (brilliant uncirculated) is the lowest grade of uncirculated and may have some scratches.  GEM is better.  The MS number is the mint state number, and is used to separate the grades of uncirculated coins.  MS 60 is BU, and MS 65 is GEM.  The best coins are MS 70, considered perfect.

Grading is subjective, and even experts can disagree.  A nick in the rim or major scratch can alter the grade.  Do not just look at those things your book says will determine the grade.  A good rule is to leave the grading to the experts, and if you disagree, get a second opinion.  If you think a coin is over graded, look for another that you consider fairly graded.

Slabbing Coins:   There are many slabbing services that will grade your coin and seal it in a plastic holder with a Certificate of Authenticity.  Unfortunately, many slabbers are less than skilled in determining the grade of a coin, and a few may be dishonest.  The first thing you should consider is the reputation of a slabber.  The ANA recognizes NGC and PCGS is another well recognized by collectors.  The first thing you should check is that the slab is sealed.  If is is not, the COA is worthless, since the coin could have been swapped.

The slabbing services charge, but the coin is still the same coin.  Unless you are buying and feel better with a professional opinion, or selling and hope to establish credibility for the grade you are claiming, why would you slab a coin?  But if you must, use a quality service.  It is worth whatever little extra you pay when you decide to sell.

This article is being made available from Black Spaniel Gallery at http://blackspanielgallery.comby the author.  Links to major English speaking mints are available at Black Spaniel Gallery.

COINS with GEMSTONES

The Australian Treasures series combines coins with gemstones.:  Currently available Online are the gold coins for 2008 and 2009.  The gold coins have a denomination of $100AU and contain 1 ounce of gold.  The 2008 coin also contains 5 opals, while the 2009 contains 1-Carat of diamonds.  These coins are proof quality.

The series also has three 1 ounce silver coins, with denominations of $1AU.  They are all proof quality.  Unfortunately, the sapphire coin, the first of the series, is sold out, and the opal and diamond coins are unavailable online.

The Treasures of Australia series shows the richness of the continent of Australia, and results in some beautiful coins. 

This article is being made available from Black Spaniel Gallery at http://blackspanielgallery.comby the author.  Links to major English speaking mints are available at Black Spaniel Gallery.

BUYING COINS ONLINE

There are times when buying Online is advantageous.

Almost every bullion coin and many others were originally purchased from a mint.  The practice of buying from a governmental mint is quite acceptable.  In fact, you probably will get a better price and have the quality coin you request, if you are willing to buy current coins.  In a few rare cases mints may have older issues, but their selections are greatest for current year coins.

Older coin sets and individual coins still in their original packaging bought from a reputable dealer is also acceptable.  If you do this, you should expect to see a picture of the exact coin.  A stock photograph is acceptable if the dealer declares no flaws, states the uncirculated grade, or claims the original case is intact.

If you are buying precious metal simply for the metal content of the coins, you do not need to see the coins.

If your purchase meets the criteria above, or if you trust your dealer, delivery to your door can be especially nice.  You do not have to spend fuel or time to go shopping for your coins.  Just remember these may be theft targets, so have home delivery only if there is a drop box into your home for your mail, or if you arrange to have to sign for the delivery.  A Post Office protects your delivery, and you were probably going to check it anyhow, so you still save fuel and time.

Buying pitfalls:

Older lower grade coins often do not photograph well.  Flaws may be missed, or, to your advantage, the coin may appear to show less detail than it has due to reflections.  This is especially true of shiny coins.  U. S. 2–cent pieces are particularly difficult to photograph.

The case you are being given may not be the original case.  Many Online sources of coins offer empty boxes for specific coins.  The problem here is that the coin may be placed in a box for cameo, but not quite fit the definition.  Even worse, the coin may be called proof but simply be a sharp, first strike coin.  While those selling empty boxes may claim they are helping collectors who damaged a box, the misuse of these boxes, and even Certificates of Authenticity, becomes a real problem.  Even a dealer cannot determine if you have the exact coin that originally was housed in a particular box or was accompanied by a specific Certificate of Authenticity, unless the case is sealed from the mint.  This problem exist for buying in person as well as Online.

This article is being made available from Black Spaniel Gallery at http://blackspanielgallery.comby the author.  Links to major English speaking mints are available at Black Spaniel Gallery.