Buying from Gainesville Coins is as easy as adding items to your cart on our website and proceeding to checkout, but there are a few things to consider when buying to tailor your purchase to your financial needs.
Goals and Budget
When buying precious metals, your individual investment or collecting goals should be carefully considered. For instance, bars or rounds generally offer the lowest premiums, while bullion coins have higher premiums but are considered more liquid, and therefore more easily sold. If you already have in mind which you would prefer, low premiums or high liquidity, it will make the buying process much simpler. When buying precious metals, it is important to define a set of goals and establish a budget that will help you meet them.
Prices, Premiums, and Payment
The value of a precious metal is determined by market supply and demand. This moving value is known as the spot price, and represents the value of the fine metal content within a bar, coin, or round. Generally, you cannot buy precious metals at the spot price and are charged a particular premium. A premium is a markup over the melt value that covers the costs associated with producing and distributing the product. Alternatively, a numismatic premium may also apply, which covers the collectible value attributed to a specific coin, bar, or round.
Gainesville Coins accepts credit card and bank wire for your online orders. Bank wire is generally the most cost-effective and convenient method of payment, allowing overnight delivery and reduced cost compared to credit card orders.
- Premium: The markup above the melt value for a coin or bullion product that represents the costs of manufacture and distribution.
- Spot Price: The current market price at a given time and place for a commodity.
- Legal Tender: Currency; redeemable for commercial transactions and satisfying debts.
- Bid Price: The maximum price which a precious metals dealer is willing to pay for a unit (typically 1 troy oz) of gold, silver, or platinum.
- Ask Price: The minimum price for which a precious metals dealer is willing to sell a unit (typically 1 troy oz) of gold, silver, or platinum.
- Capital Gain: An increase in the value of a capital asset (investment or real estate) that gives it a higher worth than the purchase price.
- Liquidity: How easily an asset can be exchanged for equity.
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