Part 3, by Palos Verdes Coin Exchange
This is the third of our three-part series explaining bullion (in particular, gold bullion) in an unbiased way from Palos Verdes Coin Exchange. It is not, nor should it be considered investment advice.
In the first article, we explained how some people consider gold to be a hedge against inflation. In our second article, we addressed the basics of buying gold. For our final piece, we explain your many gold buying and selling options to help you understand which one works best for you.
What kind of gold or gold bullion is right for you?
Gold comes in many forms. There are pure gold bullion products like pure gold bars and coins, and semi-pure gold products like coins and jewelry. Whatever kind of gold you want to buy, there are what we call in the trade “premiums” for these different kinds of products.
For example, a pure gold bar has a relatively low buying premium. Businesses who buy and sell gold charge a premium that reflects the current demand, and they make it possible to do safe business over the long term. Because businesses check gold bars themselves (as we do, we guarantee the purity and weight of everything we sell using state-of-the-industry technology), they charge a small fee for the opportunity to buy bullion from them.
When governments mint gold coins, there is a certain amount of security that consumers give those products. When something is stamped with the name and guarantee of the country, bullion buyers know this is a safe piece to purchase for protection of their investment. As such, the premiums for some gold coins is much, much higher. When dealing with certified bullion coins, for instance, like a Proof American Gold Eagle, there’s an even larger premium because not only has the country guaranteed the gold’s purity and authenticity, an outside third party has, also. And on top of that, these coins are collected, meaning that collectors assign a numismatic premium through their demand for the product.
In that way, the bullion product’s premium is a reflection of the certainty in its authenticity. So when you sell a gold coin to a bullion buyer, they pay you slightly less than the price of gold (buyer’s bullion premium), and when you buy a gold bullion coin from a business seller, you pay more than the price of the gold in that product (seller’s bullion premium.)
And that’s where Palos Verdes Coin Exchange Comes In
On any given day, we have a selection of gold coins and bars, all with varying premiums based solely on market supply and demand. These premiums and the prices of the bullion product vary on a daily basis that is completely reflective of market supply and demand.
Because of our lean business model, Palos Verdes Coin Exchange is able to pay more for gold than our competitors. At the same time, our business model allows us to sell gold to you for less than our competitors. We have such a strong, trusted business we’re able to pass savings to our customers whether they’re buying or selling gold.
Whatever your situation, we do our best to have the right gold to sell you in stock, or if we don’t have it Palos Verdes Coin Exchange can get it for you.
This isn’t investment advice. We’re sharing our experience about why some people buy and sell gold. Thanks for reading our articles. We hope you found them helpful. Look for more useful advice from PV Coin Exchange on the regular. And if you have questions, please call or come in!
Or, if you have questions, as always please call or come in: 310 750 6951.