Two types of Gold Coins

The Categories

Numismatic gold coins and gold bullion coins are two of the most important classes of gold coins. Gold bullion coins are not collectable, so they are used only because of their metal value. The bullion coins are the most popular coins in the US, but there are more such bullion coins around the world.

The Gold Bullion Industry in the United States

The Gold American Eagle is the most famous gold bullion coin in the US and the producers sell millions of copies every year. In 2006, another gold bullion coin appeared on the market; it was called the American Buffalo. The purity of the gold used and the design of this coin make it different from the one minted in 1986. Regarding the production of gold bullion, there are also other countries that produce them: South Africa’s Krugerrand is the most important one to mention. Produced before the appearance of the ones in America, it was very famous among the other gold bullion until the American eagle appeared. Around the year 1970, a new gold bullion coin appeared: the Gold Canadian Maple Leaf. Other such bullion appeared on the market in countries like Australia or Austria, called the Kangaroo and the Vienna Philharmonic respectively, while in China the Government called it the Chinese Panda. The gold coins minted until 1933 and starting with the year 1795 are mostly coins belonging to the United States; they are considered a special feature of the American nation. The coins minted in this period that survived the passing of time are of real interest for both collectors and investors.

The Industry of Numismatics in the United States

Gold coins are a very profitable and are considered a safe haven, especially for those who can afford to buy them. As they have a special design, they have always been an attraction for art and history lovers. Nowadays, these coins with their amazing histories are a very interesting subject matter all over the world. At the end of 1933, the President of the United States, Franklin D. Roosevelt, gave the order to stop the minting of this type of coin and confiscated all gold bullion. The President ordered these coins to be melted, so this is how they became so rare and, at the same time, an attraction for coin collectors.

The Importance of Gold Market Archival Knowledge

It is important for all kinds of investors to have knowledge of the history of the particular market they are targeting. The same applies to anybody interested in gold investment. Since we know that gold can be affected a great deal by inflation in terms of price, it is important to have all the information on all the factors leading to this.

Therefore this calls for a wide range of information explaining the structure, participants and operations in regard to the gold market. It is unprofessional to buy in a field about which you know nothing, have no idea as to how it functions or have no idea of its historical background to assure you that you are venturing into the right market. Sufficient information also helps a great deal in choosing the form of how to buy gold that suits and meets your needs.

There are documents readily available to investors which supply all the information they need, help them in exploring the impressive world of gold and help make it work to their advantage. Some of the information you are likely to find in your research includes supply and demand which deal with the flow of gold. Under this heading you will get all the explanation you need on the fundamentals of the gold market as well as its demand and supply structure.

It is essential to familiarize yourself with the liquidity value, advantages of gold and all the issues related to it as well as the gold market in general. Your research should be wide enough to be able to answer all your questions. You should make sure you get an explanation of all international gold prices and how they behave and why they behave as they do. Archives will help you understand all you need to and answer all critical questions you may have.

Buyers should make a point of getting all necessary information about trading in the gold market as well as the clearing and settlement processes involved while not forgetting gold market derivatives. Make sure that you understand all the jargon and terms relating to the gold market to ensure you understand the language of this type of trade.

It is incumbent upon you as an investor to get all the information and knowledge you need before plunging yourself into the world of any investment. If you take keen interest in the markets, you will be able to come up with an investment strategy that will work to your advantage.

Demand for Twenty Dollar Saint Gaudens if Growing

The Twenty Dollar St. Gauden gold coin were minted by the US Mint from 1907 to 1933. They are now considered part of what people call numismatic gold coins or rare gold coins. The design of the $20 Saint Gauden is still renown for its amazing artwork by collectors. Due to the scarcity and the inherent gold value the $20 St. Gauden has potential profits in owning these rare coins.

The Demand for Twenty Dollar Saint Gaudens if Growing

One key driving force that separates the $20 St. Gauden from gold bullion coins like the American Gold Eagle is that production has stopped for Saint Gauden gold coins. The finite number of these gold coins enhances their value beyond the pure gold content.

There are many factors contributing to the demand for rare gold coins like the Twenty Dollar St. Gauden. One major factor is the broad appeal as this gold coin is widely accepted for its value by gold coin collectors and gold buyers looking for a hedge against inflation. Though the $20 St. Gauden is a rare gold coin the supply is large enough to allow the market to buy and sell the coins on a frequent basis. Liquidity is an important factor that makes rare gold coins an attractive buying opportunity.

Besides the rarity factor the Twenty Dollar St. Gauden is also almost pure gold. The gold purity is 0.900 with gold itself having inherent value. The price of gold has never been zero which is not the case from some stocks that have dropped sharply in people's portfolios. Recent increases in the spot price of gold also affects the price of rare gold coins, too.

One major difference between the Twenty Dollar St. Gauden and the American Gold Eagle is that the sale and purchase of American Gold Eagles is recorded with the IRS while Twnety Dollar Saint Gaudens are considered a collection and not subject to these requirements. The owning of rare gold coins is considered a private position in gold.

Rare gold coins like gold bullion coins are seen as a way to preserve wealth. Many of the factors that cause forms of investments like stocks, bonds, and real estate to decrease in value cause gold coins to increase in value. Important to understand that past performance is not a guarantee of future gains though supports the greater understanding of the value of owning rare gold coins.

US Gold Coins: Grading and Value

Among the 100 million gold coins minted pre-1933, a mere 5 percent have found their way to the numismatic coins market. Having survived two meltdowns, in 1834 and 1933, the remaining US gold coin specimens are in high demand in the coins as well as gold markets. Besides high demand and low supply, American gold coins are valued for their high gold content; some series having as much as 90 percent gold composition.

US Gold Coins: Factors Affecting Grading

The primary factor affecting a US gold coin’s grading (and its value) is its design and other elements, such as the image/portrait and mint dates on the coins. The more clearly these are readable and identifiable, the better grading the coin has. Other key factors affecting the grading of US gold coins are:

• The surface: This is a highly sensitive part of a coin, vulnerable to scratches, dents and stains. Even a small nick on Lady Liberty can drastically lower the coin’s grade.
• The luster: This implies the shine of the coin; the better the shine, the higher the grade. Bear in mind that the more hands these coins pass through, the more likely they are to lose their luster and appear dull.

US Gold Coins: Grading Mechanism

US gold coins are typically graded on a 70-point scale by numismatists as well as certified coin grading services. This point system is known as the Sheldon Scale. Note that different descriptions and grading terms may be used by different grading companies. Typically, US gold coins are graded in the following categories:

Abbreviation Description Numerical Grade
P Poor 1
FR/FA Fair 2
AG About Good 3
G Good 4, 6
VG Very Good 8, 10
F Fine 12-15
VF Very Fine 20
XF/EF Extremely Fine 40-45
AU Almost Uncirculated/ About Uncirculated 50-58
UNC/MS Uncirculated/ Mint State 60-70

US gold coins may also be net graded. This form of grading is used for coins that have some issues. For instance, a coin may have an XF grade, but has been scratched or corroded over time. Such a coin may be given a "net" grade, let’s assume VF, to reflect the undesirable problems. Net grading implies that while the coin may technically have an XF grade, its market value is likely to be around the average of a VF graded coin. Net grading is applied on as much as 25 percent of the US gold coins in circulation today.

Sinking Economy and Bouncing Gold

Since early times, economy and rare gold coins have shared an inverse relation. When the economy goes down, the paper currency and stocks follow the suit. During these times, gold becomes an attractive proposition for investments and hedging. When gold surges, the speculators also buy in, further fueling the valuations. It is interesting to note that over the last decade, gold has advanced by almost 400 percent! Amidst the discouraging world economic scenario and fears of a double-dip, gold touched an all time high of $1,254 per troy ounce on June 8, 2010.

Jason Toussaint from the World Gold Council believes, “Gold has a 5,000-year track record of preserving wealth. During times of market crisis there's a flight to safety, and gold makes a strong candidate for a long-term strategic asset.” Even after the dissolution of the Gold Standard worldwide, the demand for gold never receded. Economic prudence remains the most important driver of its prices. Professor Fred Foldvary, from the Economics Department of Santa Clara University insists that at any given point of time, the metal has a fixed international price and is used as virtual money. Although, technically gold is not a part of any barter trade, its set international value imparts it the character of money.

An ardent follower of gold, Foldvary sums up the relation between the Government policies, market forces, and the gold prices, over the last three decades. The oil (1973) and energy (1979) crises left a condition of stagflation in the US. The value erosion of the paper currency made gold and real estate investments, viable risk coverage strategies. The metal touched $850 per troy ounce. To contain the exorbitant price levels, the Federal Reserve sucked liquidity out of the market. This led to a severe recession between July 1981 and November 1982. Gold prices crashed when people had to sell off their gold holdings, held in the form of investment and even jewelry. The prices tumbled to the new lows of $250 per ounce. Since then, in the times of economic instability, gold has surged to record levels.

The analysts from almost all the quarters are betting on a further jump in gold prices in the coming time. UBS predicts that gold will be in the proximity of $1,500 per ounce by the year-end. US based financial planner, Beck believes that the growth story will continue in the time to come. “When we eventually get inflation, maybe in 2012, gold will continue to climb all the way into 2017. And then I'd look to sell,” she says.

Why are organic and eco-friendly toys better for our children?

One of the greatest gifts to mankind given by the creator is nature. Now it is our duty to protect this gift. If nature is not properly used and protected, we put ourselves and our next generation into peril. So use of nature and natural products should be made with wisdom. It is also true in the case of manufacture of toys.

Care of child:

It is the duty of every soul in this world to care for the child. He is our successor. The care of his health is of utmost importance. In order to make the child industrious, we provide him with many toys. Unfortunately many of these toys are made of materials like plastic, fibers, etc. which are chemical based products. These products are known to affect the tender skin of the baby. Attracted by the pleasing color of these toys, the toddler puts these products in his mouth and as a result he gets infected. These products are known to be storehouses of many serious diseases. So the child is laid down with serious ailments. His future is affected. Ultimately we have failed in taking proper care of the baby.

Remedy:

The remedy is to stop providing such toys which are manufactured using artificial materials like plastic, etc. Instead, replace these with organic and eco-friendly toys. They do not harm the child. These toys are manufactured using natural materials. They are as attractive as artificial toys. Advantages of organic toys:

As they are made of natural material without any artificial lining around them, they are totally safe for the child. Of course, they cost little more than their counterparts; artificial toys. But looking at the long range benefit, anyone will be willing to pay more. They are free from all sorts of toxic materials. They can be used for longer period of time. They can be repaired and reused. But in any form they are eco friendly. If there is a need to discard these toys, they can be put back on the road; nature will accept them. For example toys made of wood, cotton cloth, clay toys are all eco friendly; when they are discarded in the open, they in no way harm the nature or the neighborhood. But it is not so in case of artificial toys. There are many examples of many electronic gadgets yet to be disposed off because they cannot be thrown in the open for fear of causing environmental hazard.

Natures Organic Market offers discount prices on organic products like the best organic tea and more.

Paper Bags or Plastic bags: Every Thing You Need to Know

You may not know that the question of paper or plastic is a far bigger question for eco friendly conscious people than you would think. The use of plastic bags is much more rampant in the market than paper bags because of many reasons and one such reason is that the cost of plastic bags is much less than the paper bags.

Manufacturing of Paper Bags:

The manufacturing of paper bags is a long and complicated process. These bags are made from the trees and they have their environmental cost as well. The use of trees for making these bags is not good for the environment and the forest habitat. This results into long run damage to the ecology. Also the cutting down of trees and carrying them to the manufacturing units requires the use of heavy machinery and the transportation then consumes much of the fuel. After these trees reach the desired place, there is a long process of drying the trees and extracting the pulp, then bleaching and washing of the pulp and adding the color, etc. This whole process requires a lot of resources which can be otherwise utilized for better reasons.

After Use of Paper bags:

There are different possibilities like either you can compost them or throw them or you can recycle these bags. The recycling is again a complicated and tricky process and requires the use of a lot of resources again.

Manufacturing of Plastic Bags:

Plastic bags are made completely differently from the paper bags. Plastic bags are the side products of oil and are produced by the refining process of oil. The big resource input which is used in the production of plastic bags is the energy in the form of electricity.

Recycling of the Plastic Bags:

Plastic bags are recycled but it is not an easy process and requires the melting and casting of the plastic again. This is also an energy consuming process and after the recycling, the quality of the plastic gets hard and this cannot be recycled again.

Which bag to use: Paper or Plastic?

The comparison between these two bags can be made by looking at the energy consumption, environment emissions and all other costs of recycling and production. According to some statistics, plastic bags are better as they consume less amount of energy and other air emissions while paper bags consume more resources than the plastic bags.

So to support the go green cause, the bags which consume less of the resources should be used.

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