With the cost of gold hitting record highs (almost on a regular basis!) it is more crucial than ever to be always a gold bullion shopper that is smart.
Arguably, probably the most gold that is popular coin may be the US Gold Eagle. The coin has its ownership advantages such as liquidity, global recognition, and a U.S. Government guarantee, for instance.
But could it be the gold coin that is cheapest to purchase now? Are there the premium that is lowest over other popular gold bullion coins?
Read on to see...
In a bull that is gold, your ultimate objective would be to have as many units as feasible during the top of this bull market.
To do therefore, you need to buy the gold that is most for the cash at any moment.
To make this happen objective, you will need to purchase the coins aided by the premium that is lowest (cheapest!) at that time you're making your purchase. Aided by the big variety of silver bullion coins available for purchase, how can you figure out which could be the one that is cheapest to purchase?
Right Here's the way you calculate the premiums on coins:
First you will need the spot that is current of gold (the bid cost). I prefer to make use of a source that is online as Kitco. Most bullion dealers will additionally have the spot that is current list on their website.
Next, you'll need certainly to find out simply how much each coin that is gold selling for within the spot price of silver. Most gold dealers has this detailed on the coin page that is specific. As an example, the best bullion dealer is presently quoting a $97.99 over spot for the date that is random oz US Gold Eagle
Now, determine the percentage each coin is selling for over spot using the formula that is following
Amount Coin Is Attempting To Sell For Over Spot / (Current Silver Spot Price + Amount Coin Is Offering For Over Spot)
Let us utilize the 1 oz Gold that is american Eagle an instance:
$97.99 / ($1891.60 + $97.99) = 4.9% premium over spot!
The premiums vary in accordance with the amount of coins purchased and by specific dealers. Appropriate now, the coin with the lowest premium is the South African Gold Krugerrand.
Calculating the formula for each coin on a day-to-day or basis that is regular be tedious. It is possible to simplify this by starting a spreadsheet that is basic the formula, listing each coin of interest. Then, you'll simply need to replace the spot price of silver as well as the coin that is individual figures as required.
Yourself but would still like to know what the cheapest gold coins are, on a regular basis, I've done the hard work for you if you don't want to calculate the gold coin premiums!
