What Are The Cheapest Gold Bullion Coins? Learn How To Calculate Gold Coin Premiums:-With the price of gold hitting file highs (almost each day!) It is extra vital than ever to be a smart gold bullion shopper.
Arguably, the most popular gold bullion coin is the American Gold Eagle. The coin has its possession advantages equivalent to liquidity, worldwide recognition, and a US Government assure, for instance.
However is it the cheapest gold coin to purchase now? Does it have the bottom premium over different popular gold bullion cash?
What Are The Cheapest Gold Bullion Coins? Learn How To Calculate Gold Coin Premiums
Learn on and find out …
In a gold bull market, your final goal is to personal as many items as possible on the peak of the bull market.
In order to take action, you need to buy probably the most gold in your cash at any given time.
To achieve this purpose, you’ll want to purchase the gold cash with the bottom premium (least expensive!) On the time you’re making your buy.
With the massive variety of gold bullion cash out there on the market, how do you identify which is the most affordable one to purchase?
Here is how you calculate the premiums on gold coins:
- First you may want the present spot worth of gold (the bid worth). I like to make use of a web based supply equivalent to Kitco. Most bullion sellers may even have the present spot worth checklist on their web site.
- Subsequent, you may must learn how a lot every gold coin is promoting for over the spot worth of gold. Most gold sellers may have this listed on the particular coin web page. For instance, my favourite bullion vendor is at the moment quoting a $ 97.99 over spot for a random date 1 ouncesAmerican Gold Eagle
- Now, calculate the share every coin is promoting for over spot utilizing the next components:
Amount Coin Is Selling For Over Spot / (Current Gold Spot Price + Amount Coin Is Selling For Over Spot)
Let’s use the 1 oz.American Gold Eagle as an example:
$ 97.99 / ($ 1891.60 + $ 97.99) = 4.9% premium over spot!
The premiums will fluctuate according to the amount of cash purchased and by particular person sellers. Proper now, the coin with the lowest premium is the South African Gold Krugerrand.
Calculating the formula for every coin on a each day or common basis can be tedious. You may simplify this by organising a primary spreadsheet with the formulation, itemizing every coin of curiosity. Then, you’ll simply want to change the spot worth of gold and the person coin pricing numbers as wanted.
If you do not want to calculate the gold coin premiums your self however would nonetheless prefer to know what the cheapest gold cash are, regularly, I’ve accomplished the exhausting be just right for you!