Gold vs. CD accounts for investments.
Hi Terry, I talked to you earlier today on radio about buying either gold coins or buying cds for our grown children. I was on my phone in the car listening to both of them and I turned the radio down and then my phone cut out so I was never able to hear all of your answer. The US mint has $5,000 coins.Thank you.
Terry Says
There is a one ounce PROOF American Buffalo gold coin selling today for $5240. Of course that is much higher than the priceof one ounce of gold today — currently selling at $4288 as I write this. The “premium” over gold is supposed to reflect its rarity and collector’s value. So you’re paying extra for that — about a 20% premium.
If you wanted to buy an older U.S. $20 Double Eagle gold coin. you’d pay slightly over $4300, depending on its condition and date. It won’t be in a pretty presentation case, but it will be 0.965 troy ounces of gold!
There are many U.S. gold one ounce coins with premiums in between those two extremes.
So, I’m assuming you want to do something memorable, as well as financial. You could always contribute to a grandchild’s 529 college savings account if you don’t just want to hand your kids cash to pay off credit card debt or go on vacation.
But if you’re trying to create a valuable memory and heirloom, I suggest you visit a coin dealer you can trust — and find a US gold coin with less of a premium. In Chicago, I use Harlan J. Berk as my coin dealer. If you’re elsewhere, go to the website of the American Numismatic Association — https://www.money.org/
