If you are interested in buying and selling gold, then there is a lot of information that you need to digest before making the plunge. After all, you don't want to jeopardize your money without knowing all the facts, right? In order to get a better idea of how the gold market works, you might want to look into gold coins. To help you get a leg up on the competition, here are some tips that can help you buy and sell gold coins like a pro:
Start with Coins
One of the best things that you can do is start simple. Gold coins are an excellent opportunity for beginners to understand how the gold market works, while not being too overwhelming.
When choosing the kind of coin that you want, you should know that many countries offer their own versions of gold coins. For example, America has the Eagle, Canada has the Maple Leaf, and China has the Panda. Each coin comes in several denominations, such as 1 oz, 1/2 oz, and 1/10 oz. These coins are heavily standardized by their respective countries and technically could be used as legal tender. However, you shouldn't ever try to use gold coins as legal tender, since the face value tends to be far less than the gold content of the coin is worth. For instance, a 1 oz American Gold Eagle has a face value of $50, yet the gold inside is worth well over $1,000.
How the Gold Market Works
There are quite a few similarities between the stock market and the gold market, but there are also some substantial differences.
Gold coins are traded on specialized markets, somewhat like stocks. Like stocks, the gold market revolves around tracking and predicting the current and future price of gold. When gold is worth a lot, you should sell. When gold isn't very valuable, it might be a good idea to buy up as much as possible.
Unlike stocks, gold coins are a physical commodity. This means that they do have some collectible value and you won't be relying purely on digital transactions. A gold coin can be held and physically taken to a gold trader, where you can directly sell it.
It's important to note that these sizes are in troy ounces, which are slightly different than the ounces that you are probably used to. A troy ounce is around 10% bigger than a regular ounce. If you weigh your coins out of curiosity, and are surprised by the numbers, just remember to convert to troy ounces.
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