It's funny that when trying to learn about a new topic nowadays, particularly in the money and investing category, things can be quite challenging.
Certainly not because there's a lack of information on the subject; the problem many people face is that there's too much! With all of the magazines, newspapers, news programs (even whole networks just for news), and a seemingly endless number of websites to learn from, it can be nearly impossible to know where to begin.
The best thing to do when getting started, is to learn how to determine the value of gold coins themselves.
Now how exactly is that done? For starters, you must be aware that the current price of gold fluctuates on the commodity open markets.
That means it changes constantly 24 hours a day, since it is traded on all of the world's major markets.
Since the spot price (or the price that the metal can be bought and sold for at that exact point in time) is constantly changing, it is important to consider the range that the metal is trading in to have a more concrete idea of it's value.
Wow, that's a mouthful, right? Let's understand this concept in plain English: think of the spot price in the same way that fish is set by the market price in a restaurant.
The price you would pay today won't necessarily be the same price you pay tomorrow.
The same principle applies to bullion.
It's safe to say that this can quickly get complicated, but for practical purposes, that's the gist of how it works.
So we have learned that the value of bullion coins is largely tied to it's spot price.
Well, what else is involved in determining value? Naturally, the weight of the coin.
The coin's weight, in addition to it's current price (based on one once) will determine how much a particular coin sells for amongst investors.
Coins are minted in sizes from as little as ¼ troy, up to 1 troy oz.
Therefore, the formula for determining a coin's price is figured using the simple calculation of multiplying the percentage of an once that the coins represents, by it's current accepted price.
This gives us two functional criteria for the figuring out the value of gold bullion coins.
Another factor involved in the equation is to ascertain the style of the coin itself.
Is it a rare coin? Perhaps a newly issued coin from a government mint? Or is it part a discontinued series, or maybe a coin with a flaw that was issued from a mint? These questions fill in the picture somewhat; although for clarity, those reports of the price of gold in the morning paper are referring to the price of a 1oz coin.
The rarity of the coin itself can add value to the coin, since scarcity inflates value in any commodity.
Although there are indeed other factors to consider, such as purity, quality of the finish, costs involved in manufacturing, distribution charges, and others, we now have a workable formula for finding out the price of a given coin.
In practical terms, the value is the price x the weight(in ounces) + the rarity of the coin.
Add between a 3% to 6% markup in terms of ancillary costs, and there is the baseline determination of the value of your coin.
Once you get the hang of it, it's much easier than people think.
Certainly not because there's a lack of information on the subject; the problem many people face is that there's too much! With all of the magazines, newspapers, news programs (even whole networks just for news), and a seemingly endless number of websites to learn from, it can be nearly impossible to know where to begin.
The best thing to do when getting started, is to learn how to determine the value of gold coins themselves.
Now how exactly is that done? For starters, you must be aware that the current price of gold fluctuates on the commodity open markets.
That means it changes constantly 24 hours a day, since it is traded on all of the world's major markets.
Since the spot price (or the price that the metal can be bought and sold for at that exact point in time) is constantly changing, it is important to consider the range that the metal is trading in to have a more concrete idea of it's value.
Wow, that's a mouthful, right? Let's understand this concept in plain English: think of the spot price in the same way that fish is set by the market price in a restaurant.
The price you would pay today won't necessarily be the same price you pay tomorrow.
The same principle applies to bullion.
It's safe to say that this can quickly get complicated, but for practical purposes, that's the gist of how it works.
So we have learned that the value of bullion coins is largely tied to it's spot price.
Well, what else is involved in determining value? Naturally, the weight of the coin.
The coin's weight, in addition to it's current price (based on one once) will determine how much a particular coin sells for amongst investors.
Coins are minted in sizes from as little as ¼ troy, up to 1 troy oz.
Therefore, the formula for determining a coin's price is figured using the simple calculation of multiplying the percentage of an once that the coins represents, by it's current accepted price.
This gives us two functional criteria for the figuring out the value of gold bullion coins.
Another factor involved in the equation is to ascertain the style of the coin itself.
Is it a rare coin? Perhaps a newly issued coin from a government mint? Or is it part a discontinued series, or maybe a coin with a flaw that was issued from a mint? These questions fill in the picture somewhat; although for clarity, those reports of the price of gold in the morning paper are referring to the price of a 1oz coin.
The rarity of the coin itself can add value to the coin, since scarcity inflates value in any commodity.
Although there are indeed other factors to consider, such as purity, quality of the finish, costs involved in manufacturing, distribution charges, and others, we now have a workable formula for finding out the price of a given coin.
In practical terms, the value is the price x the weight(in ounces) + the rarity of the coin.
Add between a 3% to 6% markup in terms of ancillary costs, and there is the baseline determination of the value of your coin.
Once you get the hang of it, it's much easier than people think.
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