coin supplies
This article will provide a General Description of Gold, Silver, & Platinum Bullion
A lot of people are familiar with bullion coin supplies and bars, and you see them offered on TV or on websites, but the sheer number of these products may cause even the experienced investor to pause. They are similar in nature, they move up or down directly with the price of gold, silver, or platinum on a daily basis. And, their buy and sell prices are easy to comprehend.
They are precious metals and as such are measured by the Troy ounce, as compared to your bathroom or postal scale weight which is called Avoirdupois. For the record 14.58 troy ounces = 16 postal scale ounces. The Troy ounce is approximately 10% heavier than the Avoirdupois weight. These bullion products move directly with the New York Commodity Exchange, which opens for trading at 5:30 AM and closes at 10:30 AM California time. After the Comex (Commodity Exchange) closes the price of these coin supplies usually remain fized until the beginning of the next trading day. However there is an aftermarket which may cause quote changes.
A definition of bullion coin: one in which there is little premium above the content or weight value of the coin. You are buying only the commodity itself. Coins like this will increase in value if world markets go up and will decrease in value if world markets go down. This happens because bullion manufacturers produce large numbers of them each year, and eliminates the idea of these coins being rare in any sense, this is not the same for government issue bullion coins.
So what is the difference in a bullion gold coin and a bar of bullion? In the early days of bullion trading the bars was popular. People became interested in owning gold so trading volume increased dramatically which sometimes led to problems with bars in general. They were produced by private companies, so at times it was difficult to know the exact weight and purity. This led to confusion and didn't encourage investor participation.
Governments then decided to produce bullion coins. Producing a bullion coin to replace the bar was more desirable because international standards were developed and coins were uniformly produced. This opened the way to buy and sell bullion again. And because large numbers of coins were produced the premium was the same for bullion coins as it was with bullion bars.
Today gold bars are also popular and safe because private manufacturers standardize production and create a polished look which the general public has confidence in.
Legal Tender Silver Bullion Coins for the Collector or Investor
The $1000USD Face 90% Silver Bag: A desired way of owning silver bullion is in the form of $1000USD face value silver coins struck in 1964 or before. They weigh about 54 pounds and are sometimes referred to as "junk" silver bags which is misleading. This derogatory name was developed in the 1970's, and was used to describe a bag of average circulated silver coins that did not contain anything that was rare. These bags contained $1000USD face value so if half dollars were used there would be 2,000 coins, if the bag contained quarters the count would be 4,000 coins, if it contained dimes there would be 10,000 coins, and so on. If you were to melt them they would contain about 715 oz. of pure silver. All silver coins struck in 1964 or earlier are 90% pure, so bags will move up or down with the daily price of silver. For convenience some sources provide bags in two smaller units of $500 face value each, which makes it easier to handle and store.
The private investor should be aware these old silver coins are no longer being produced. That means if demand increases because of rarity the price over their normal silver value could be in play. Premium pricing also develop because survivalists, who want only U.S. silver coins for barter, insist on this form of silver bullion. The premium on 90% silver bags can vary from a negative (trading for less than content) to a positive and price to as much as 30% over their actual silver weight.
The difference between buy and sell is fairly constant and there are investors who buy bags when premiums are cheap or negative and trade them when premiums increase substantially. Keep in mind that dealers are required by law to report the sale of $1000USD face value 90% bags on an I.R.S. Form 1099B. Smaller quantities of 90% bags are not reportable.
tag : coin supplies
This article will provide a General Description of Gold, Silver, & Platinum Bullion
A lot of people are familiar with bullion coin supplies and bars, and you see them offered on TV or on websites, but the sheer number of these products may cause even the experienced investor to pause. They are similar in nature, they move up or down directly with the price of gold, silver, or platinum on a daily basis. And, their buy and sell prices are easy to comprehend.
They are precious metals and as such are measured by the Troy ounce, as compared to your bathroom or postal scale weight which is called Avoirdupois. For the record 14.58 troy ounces = 16 postal scale ounces. The Troy ounce is approximately 10% heavier than the Avoirdupois weight. These bullion products move directly with the New York Commodity Exchange, which opens for trading at 5:30 AM and closes at 10:30 AM California time. After the Comex (Commodity Exchange) closes the price of these coin supplies usually remain fized until the beginning of the next trading day. However there is an aftermarket which may cause quote changes.
A definition of bullion coin: one in which there is little premium above the content or weight value of the coin. You are buying only the commodity itself. Coins like this will increase in value if world markets go up and will decrease in value if world markets go down. This happens because bullion manufacturers produce large numbers of them each year, and eliminates the idea of these coins being rare in any sense, this is not the same for government issue bullion coins.
So what is the difference in a bullion gold coin and a bar of bullion? In the early days of bullion trading the bars was popular. People became interested in owning gold so trading volume increased dramatically which sometimes led to problems with bars in general. They were produced by private companies, so at times it was difficult to know the exact weight and purity. This led to confusion and didn't encourage investor participation.
Governments then decided to produce bullion coins. Producing a bullion coin to replace the bar was more desirable because international standards were developed and coins were uniformly produced. This opened the way to buy and sell bullion again. And because large numbers of coins were produced the premium was the same for bullion coins as it was with bullion bars.
Today gold bars are also popular and safe because private manufacturers standardize production and create a polished look which the general public has confidence in.
Legal Tender Silver Bullion Coins for the Collector or Investor
The $1000USD Face 90% Silver Bag: A desired way of owning silver bullion is in the form of $1000USD face value silver coins struck in 1964 or before. They weigh about 54 pounds and are sometimes referred to as "junk" silver bags which is misleading. This derogatory name was developed in the 1970's, and was used to describe a bag of average circulated silver coins that did not contain anything that was rare. These bags contained $1000USD face value so if half dollars were used there would be 2,000 coins, if the bag contained quarters the count would be 4,000 coins, if it contained dimes there would be 10,000 coins, and so on. If you were to melt them they would contain about 715 oz. of pure silver. All silver coins struck in 1964 or earlier are 90% pure, so bags will move up or down with the daily price of silver. For convenience some sources provide bags in two smaller units of $500 face value each, which makes it easier to handle and store.
The private investor should be aware these old silver coins are no longer being produced. That means if demand increases because of rarity the price over their normal silver value could be in play. Premium pricing also develop because survivalists, who want only U.S. silver coins for barter, insist on this form of silver bullion. The premium on 90% silver bags can vary from a negative (trading for less than content) to a positive and price to as much as 30% over their actual silver weight.
The difference between buy and sell is fairly constant and there are investors who buy bags when premiums are cheap or negative and trade them when premiums increase substantially. Keep in mind that dealers are required by law to report the sale of $1000USD face value 90% bags on an I.R.S. Form 1099B. Smaller quantities of 90% bags are not reportable.
tag : coin supplies
ReplyDeleteAs the popularity of collectible coin supplies increased, the variety of weights also increased.
If you take part in the hobby ofcoin supplies, acquiring graded collectible coins is a goal that is reachable.
For more visit: coin supplies