Does Investing in Certified Gold Coins Make Sense? Dispelling the premium myth.

There is a lot of disinformation circulating intended to steer investors away from certified gold coins and towards other gold investments that are more profitable for the brokers. One of the most common themes is the claim that high premiums detract from the value of the investment, a claim that cannot stand up to a little logical scrutiny.
The premium in question is not a dealer's markup as the argument leads one to believe, but is what is known as the rarity premium - the added value of a coin determined by its scarcity and desirability. In other words, the rarity premium itself has significant investment potential in addition to that of the gold content of the coin.
The supply of each rare gold coin is fixed, limited to its original mintage. Population expansion alone steadily increases demand, and the ever increasing popularity of investment grade certified gold coins for long term stability is driving up demand even faster.
There are many warnings that should be heeded, however. Many companies, including a few high profile ones, have been taking advantage of eager investors by charging exorbitant fees and marketing low grade and undesirable coins. Great care must be taken to find a highly reputable and ethical dealer who will help you select rare gold coins with proven investment potential and high liquidity.
Most of all, take the time to learn all you can about certified gold coins. Chances are you will find that their beauty and historical richness adds yet another dimension to one of the most secure and potentially profitable investments available today.
Bill Jones
Coin and Collectables Writer

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