The Golden Chalice

Smart Gold Investment

Investing in Gold Mining Stocks vs. Physical Gold – Which is Best?

Saving money is an important aspect of our financial goals. But these savings need to be employed well to give us returns. When investing, it is important to remember to have enough diversification of portfolio.

It’s not a good idea to keep all one’s eggs in the same basket.

When the market crashes, there should be something to turn to. Gold has always been an investment option for many. Gold in the form of bars and coins have been purchased to meet investment needs. This form of investment offers liquidity, has traditional value and can be hedged in times of uncertainty.

But there are many options in gold. Physical Gold vs. Gold Mining Stocks, which is better?

Both share Gold’s Strength

Both being gold share some of their strengths. Gold has always been in demand for its shine, and has been used in jewellery. Having said that, there are differences between the two forms.

Gold Mining Stocks – the good

When you buy mining stocks, you are investing in stocks of companies that are into the business of mining gold. It is equity. Before investing it is important to research into the fundamentals of the company, the management, ask questions that you should know the answers to, as an investor and when satisfied, give them your money. You have chosen this investment to help your money grow. They work like other stocks. The value grows with market growth. Individual performance also triggers growth. But like any other stock, they may lose their shine as well.

Gold Mining Stocks – the bad

These stocks have the same flaws that any other stock has. Market fluctuations may drive the price up or down. In addition, gold may lose its demand for various reasons due to which its mining may not be a lucrative business leading to its decline. In addition, the company you have invested in may run to into problems. In others words, these are stock options you need to exercise with caution and be ready to ride the market tide.

Physical Gold – the good

It is a liquid form of investment. Physical gold that is, its price reflects market sentiments faster than stock. Gold prices fluctuate. But since they are more sensitive, you can read the pulse and act fast. Physical gold is not subjected to the vagaries that a stock is vulnerable to. It is highly liquid. In times of need, it can be sold in exchange for cash.

Physical Gold – the bad

Its flipside is that its value tends to go down when the market is up. It may seem then to be a bad investment. Holding on too is a bad decision many of us suffer from. Dump the bad ones and move on. But it is easier said than done. Gold stocks depend on many variables and hence don’t easily fluctuate, unlike physical gold. If you are not good at timing the market which most of us are not, it is better to invest in gold stocks.

What do Gold Coin Auction Prices Represent?

A question that is often asked. It has been seen that lately, the market is depending on auction prices to determine the price of gold. Is the price retail or wholesale?

gold auction

Doug Winter who writes for coinweek says, both.

According to him, the coin market is among the most transparent in the US and anyone wishing to learn something about collectible coins has access to a whole lot of information that was uncommon even a decade back.

There are numerous data points and these need to be meaningfully interpreted to make them “of some value”.

From the collector’s viewpoint, the prices quoted for the valuable coins during the auctions serve for comparison. They usually use the data to ensure they do not over-pay for what they are about to purchase. The presence of internet has greatly helped in making the information accessible to anyone who wishes to look up.

There are price guide writers who use the value realized from coin auctions when publishing, especially for higher valued coins. The auction prices are also used by coin appraisers for performing appraisals for estate purposes.

Usually coins that make appearances after a considerable gap of time; say 4 to 5 years are deemed to be of the price they realize at the last auction.

It is not clear however whether the rate they command at the auction date is wholesale/retail. But it would definitely cost the buyer more if he purchases the same from a dealer or collector.

A bit of research and digging into the data is required to determine if the price quoted is more or less, in the auction for that grade and rarity.

There are the low end and the high end coins. It is to be believed from what Doug states, that each coin has a range between which its price can be stated. For the current market, it would be safe to say that the lower end ones are “wholesale” and the higher end ones are what we usually refer to as “retail”. Some of the types that exist are:

NGC, non-CAC


NGC, CAC approved

PCGS, CAC approved

Coins demand value depending on their level of sophistication, rarity, and grade. It also depends on the fact that a dealer or collector/investors is purchasing the item.

Views may vary. Because at times, the price could be a wholesale price that is later marked up and sold to collectors. Again, there are coins bought by dealers, sold to other dealers who then sell it to collectors or other dealers. Some amount of investigation is required to arrive at a conclusion about the price realized. Many collectors employ dealers to represent them at auctions to gauge the value and price of a coin on their behalf for which they pay a commission to the dealer.

Often it is believed that the auction is a market and the price is just that – a price. Opinions vary and there is no one answer to the question.

The Gold Rush Exchange

The Gold Rush Exchange are one of the most trusted names in gold industry. The Gold Rush Exchange aims to provide its wide array of visitors about the best idea and up to date information on the matter of gold IRA rollovers. The information you will get from this site are all taken from the most trusted sources and you will be guided towards the right direction for your investment in a gold IRA. Unlike some websites that provide misinformation on such crucial issues and mislead people towards the wrong direction for investment The Gold Rush Exchange take great concern about it. When it is about the concerns of retirement funds of people, genuineness and transparency are the essential things that people need in such situations.

A Leader for Gold Investment Guidance

When people think about investment in different sectors such as stock market, property, equities etc for their retirement life, there are lots of prosperous possibilities along with ample risk factors. Comparatively, if they consider gold as the medium of investment for their retirement life, it will be undoubtedly a wise decision as gold is renowned as the most precious metal that has eternal market value. It is the symbol of prosperity and wealth because of its apparent value and rarity. If you think of today’s gold price in 2015 as $1,138.10 per ounce and compare it with 10 years back, you can truly feel that you are a gainer. The price of the gold often quadruples in relation to US dollar.

The Gold Rush Exchange is the right destination for you from where you will get the proper guidance to invest your money on gold IRA rollover. Their motto is to educate you to protect your portfolio through relocating a 401K retirement instrument so that you don’t have to face any disaster drops from other investment vehicles. Remember that the rising of the gold price indicates some upcoming threat on the international economical stability. Therefore, during these crisis periods investing on gold makes sense, as little risk is associated. This website assures you with the commitment of public informed with accurate knowledge.

Your Long-Term Wealth Preservation Assistance

We understand the value of your lifetime savings and that’s why The Gold Rush Exchange provides you the right information so that you don’t need to face anything utter scary. Certain gold IRA companies unwisely advise their customers in order to squeeze maximum amount of money from their prospective customers without thinking about their lifelong saving. Choosing the wrong investment firm may lead you towards the assortment. To prevent such economic uncertainties, The Gold Rush Exchange researches a lot and then recommends you the right kind of guidance for long-term investment on gold. After all, the investing the money in the right direction wisely is our first and foremost priority. All of our reviews including our Lear Capital review are done from the data taken from The Better Business Bureau, The Business Consumer Alliance and Trustlink.


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Gold Bullion For Your First Investment

gold-bullionMany experts say to stick to gold bullion in the early phases of your gold investing journey. It’s moderately simple to do and you don’t need to stress much over the quality of gold or substance.

Gold bullion tends to come as round coins and bars but you can get all sorts of shapes as well. The best bullion coins are those struck by government mints, in light of the fact that they have a tendency to be of  light weight, and size, and you don’t have to have them examined when you purchase them.

One the other hand, gold bars regularly require measuring and checking, yet have a tendency to be less costly to buy when you purchase in quantity.

While they may appear to be enticing, don’t put your time or resources in crude gold chunks. Crude gold is a type of compact craftsmanship and it has a tendency to be beautiful, however that is the thing that makes it a lousy venture. The imaginative worth may far exceed the metal quality, adding a colossal premium to the price tag.

Pieces can fluctuate fiercely in worth, with the vast majority of their physical mass frequently comprising of pointless rock and soil. Indeed, even the absolute best Alaskan chunks once in a while surpass 75% gold substance.

On the off chance that you choose to stockpile physical gold, be totally certain to buy it from legitimate merchants. Never purchase it without seeing it first and examine the merchant as much as you can before you even approach them for the sale.

At any rate, check with the BBB, and do some due-diligence of the merchant on the internet to see what others have said. A most recommended option is to go with merchants and valuable metal traders that have practical experience in bullion.

Once more, coin bullion is your best bet, since its great for the virtue, substance, and weight. On the off chance that you run over a bar or two of obscure immaculateness, inquire as to whether they’ll measure it at your expense.

For storing, you can place it in a protected enclosure at your bank; that way, you don’t need to stress over burglary. The negative angles are that you’ll need to pay as much as a hundred dollars every year or more.