Choosing the Right Investment Metals

After selecting from the three basic types of precious metals (gold, silver, platinum), the next step is to choose the investment category. Each of the listed categories has different characteristics, advantages and disadvantages. All physical investment metals carry a cost above the current 'spot price.' The metal must be mined, purified, assayed, configured into the form of a bar -- and then into a coin. These factors are priced into the cost of physical metals. The 'above spot price' of our coins vary with bullion being the lowest and certified-graded coins being the highest.

Our retail price is determined by factors such as our sales commission, dealer sales price, rarity, condition, mint, grading and supply and demand.

Choosing the Right Investment Metals

Bullion consists of bars and newer minted government coins such as the Chinese Panda, American Eagles, U.S Buffalos, Canadian Maple Leafs, Austrian Philharmonics, and South African Krugerrands. Bullion is mass produced each year and traded closer to the corresponding spot market price.

You can generally purchase bullion slightly over the spot price and liquidate/sell it slightly under the spot price. The price is set by the mint, and overall open market demand. Certain bullion products are legal tender and some are non-legal tender. Bullion is mostly acquired by institutions and corporations in large bulks as a short-term investment for small percentage gain.

Under past and current Federal laws, the clients' sale of these government coins and bars requires dealer reporting via an IRS 1099 form. When you liquidate or sell government coins or bars and the cash amount exceeds $600, we collect your personal including your name, address and social security number. In addition to collecting your personal information, we are required by law to report these transactions to the IRS for their purposes.

Government bullion coins and bars were recalled, banned and/or prohibited by the government almost a century ago. We mention this not because we foresee it happening in the future, but because it is a commonly asked question.


Are you looking for the privacy benefits that certified-graded coins offer without the high collector premiums?

Semi-numismatic coins are defined as part numismatic and part bullion. Their value is generally set between bullion coins, which typically carry the lowest market price, and certified-graded coins, which carry the highest premium because they may include numismatic value.

Investors looking to capitalize on the precious metals bull markets acquire semi-numismatics because, just like bullion, their value is directly affected by the corresponding spot market, and they may include numismatic value.

The industry commonly refers to semi-numismatic coins as “Private Metals” because we do not collect your personal information during the sale nor do we report it to the IRS.

Semi-numismatic coins are perceived in the industry as offering the most metal content for your dollar in a non-government supervised investment. So, if you're looking for profit potential, potential numismatic value, and (depending on the precious metals price trajectory), a hedge against inflation, wealth preservation, and the ability to stay off the radar --- semi-numismatics are the asset of choice!

Semi-numismatic coins are raw, pre-1933 U.S and European Gold coins such as Saint-Gaudens and British Sovereigns --- and pre 1935 U.S. Silver coins such as the Morgan Silver Dollar and the Peace Silver Dollar.

These coins are not minted anymore due to their limited supply. History has shown that these semi-numismatics coins tend to be resistant to downward pressure in the market. They can potentially outperform bullion because of demand factors and their lower pricing.

Under past and current laws, most of these coins are exempt from any dealer collection of personal information and reporting on an IRS 1099 form. No personal information like your social security is required when you cash out. Confidential transactions like this are favored by those concerned about the sharing of personal information. In addition, numismatic coins have been exempted from past government recalls, bans, and gold bullion prohibition. We mention this because it is a commonly asked question.

Certified-Graded Coins

Certified-Graded coins are full numismatic coins and, by definition, carry high collector premiums well above the corresponding spot price. These coins are graded by two of the world’s most respected grading companies: Numismatic Guaranty Corporation (NGC) and Professional Coin Grading Service (PCGS). These coins are sealed in a transparent hard casing with a barcode and graded as Mint State (MS), 60 to 70. The higher the number, the higher the value of the coin. Certified-Graded coins are bought mostly by collectors, not investors who are typically trying to get the most metal content for their dollar.

All numismatic coins, by definition, carry higher premiums over bullion price. Higher graded coins like MS 68 to 70 may have a thinner trading market. The most compelling aspect of certified-graded coins is that they generally have a history of stable pricing during volatile market conditions, meaning they do not tend to react to downward pressure in a falling market and have outperformed bullion up to 5 to 1 due to supply and demand ratios.

Under past and current laws, these coins are exempt from dealer 1099 reporting criteria. No personal information such as your social security number is required when you cash out. Such confidential transactions are favored by people with privacy concerns. Numismatic coins have also been exempted from past government recalls, bans and gold bullion prohibition. We mention this because it is a commonly asked question.

For more information on this topic, check out what best-selling author and private wealth manager Rob Russell thinks in: "Holding the Right Kind of Gold." Click the U.S. News icon below.