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The Golden Opportunity – Investing in Gold

Investing In Gold Doesn’t have to be Difficult.

Vermillion Enterprises is here to help.

Investing in Gold

Gold Investing: Coins or Bars? Which is better?

How Should I Invest in Gold?

Vermillion EnterprisesTHE BEST place to turn your gold into cash or turn your cash into a gold investment. At Vermillion Enterprises we have friendly customer service first and foremost. Additionally, we are a reliable and reputable local dealer. Plus, we take interest in your investment.

Investing in gold is undoubtedly one of the best investments you can make. For a variety of great reasons. It is portable, it is durable, it stores easily, and it can be used as collateral for loan agreements. The latter of which can be helpful and useful for someone who does not have credit cards for instance.

However, choosing which option to go with can be confusing or even frustrating. There are bars, rounds, and a plethora of options to choose from with gold coins!

If you have CA$H, we have coin!

If you have coin, we have CA$H!

Here at Vermillion Enterprises, we strive to give you the best customer service and when asked, the best advice on investing in gold. Whether you are looking to buy or sell gold, we are here to help! So, what are your options?

Investing in Gold: Bars vs. Coins

  1. Gold bars / generic gold rounds (Non-denominational)
  2. Gold Coins (Denominational/Currency)
    1. American
    2. Foreign

Is there really a difference?

On the outside looking in, no there is not a difference between them. Gold is gold, right? Not exactly. Let us examine the options.

Generic Gold Bars

For gold bars or generic rounds to be investment quality, they MUST be 99.5% or greater in pure gold. Anything less includes alloys. Which for coins, is ok. But NOT gold bars or generic gold rounds. Here’s why:

PREMIUMS UP:

  1. Gold coins have a denominational value as currency IN ADDITION to their gold value. Regardless of how many karats of gold are in them. Gold bars do NOT have a denominational value past their weight in gold. Which means, they are only worth as much as the gold within them. Weight and purity.
  2. Gold coins are also collectible items – which means their value can supersede the spot price of gold (or price of gold per troy ounce). Often including premiums. Applied at purchase AND resale.

PREMIUMS DOWN:

  1. Fractional gold bars or generic gold rounds may require less of a premium at time of purchase; however, at time of resale, you can get dinged. Why?
    1. In the State of Florida, if you sell a gold bar, whether it be fractional or full ounces, it MUST be reported. Weights and serial numbers, along with your Driver’s License, are recorded for the government. This is to protect against and track theft. In case they are ever reported stolen.

THE GOLD HOLD UP:

  1. A dealer MUST hold gold bars for 30 days before they can re-sell them. How does this affect how much you get back at the time of resale to a dealer?
      1. The price of gold changes several times a time. In 30 days, the bars may not be worth as much as they are today. Or they could be worth more. Either way, it is a gamble and one a dealer must consider when paying you out.
      2. Most dealers pay out 90% -95% on gold bars, such as non-denominational gold bullion.
      3. Vermillion Enterprises typically pays 97%-99% on all non-denominational gold bullion.

Coins are NOT affected by the 30 day hold and there is no tracking system regulated by the government on U.S. Gold Currency or foreign gold currency. Except in some cases of coins at resale (keep reading, we’ll get there!).

In Florida, U.S. Gold coins are NOT taxable. However, fractional Maple Leafs, Krugerrands, and gold bars sold for under $500 per transaction are subject to State Sales Tax. Purchases over $500 are not. Regardless of whether they are coins or bars.

Now let’s take a look at the coin options.

Gold Coins

Gold coin collecting and/or investing is NOT limited to just this list of coins. There are many gold coins available for collection or investment. For example, Pre-1933 Gold Coins. These coins offer a unique combination of history, value, and liquidity that isn’t found in modern bullion coins. However, not all are as intrigued with history and are looking for something more low key but affordable and easy to liquidate. Here’s 8 of the Best Gold Coins to Invest in!

  1. American Gold Eagles

    Buy-Sell American Gold Eagles -

    American Gold Eagle Coin – 1 oz.

Released in 1986. American Gold Eagles are available in 1 oz. and fractional coins. They are 22-karat (.9167 fine) gold. One of the most popular gold coin collectibles available. It is the leading U.S. Gold investment coin.

  1. American Gold Buffaloes

    Buy Sell American Gold Buffalo

    2006 American Gold Buffalo Bullion Coin

Debuted in 2006. American Gold Buffaloes are available in 1 oz. coin only. They are 24-karat (.9999 fine) gold.

 

 

 

  1. Australian Gold Nuggets

    1 oz coin = “Welcome Stranger” nugget

    1 oz coin = “Welcome Stranger” nugget

These coins were first minted in 1987. The Australian Gold Nugget coin is a 24-karat (.9999 fine) gold coin. Available in 1 oz. and fractional denominations.

 

 

 

 

  1. Australian Gold Lunars

    buy sell Australian Lunar Coins

    Australian Gold Lunar Coin
    1996 Lunar Series I – Year of the Mouse (Rat)

Released in 1996. Available in 1 oz. and fractional coins. They are 24-karat (.9999 fine) gold.

 

 

 

 

 

  1. Austrian Gold Philharmonics

    Gold Philharmonic Coin

    Gold Philharmonic Coin – Reverse side

Minted in 1989. Philharmonics are available in 1 oz. and fractional coins. They are 24-karat (.9999 fine) gold.

 

 

 

 

  1. Canadian Gold Maple Leafs

    buy or sell gold maple leaf coins

    The standard .9999 fine Gold Maple Leaf Coin since 1982.

The first 24-karat gold coin in the world. Making its appearance in 1979. Canadian Gold Maple Leafs are available in 1 oz. and fractional coins. They are 24-karat (.9999 fine) gold.

 

 

 

  1. Chinese Gold Pandas

    1982 Gold Panda

    The 1982 Gold Panda.

Debuted in 1982. Chinese Gold Pandas are available in fractional and 1 oz. coins. However, they are on the metric system of weight. Which means, in lieu of the troy ounce, they are in grams. A 1 oz. Gold Panda is 30g or .09645 oz. They are 24-karat (.9999 fine) gold.

 

  1. South African Gold Krugerrands

    Buy sell Gold Krugerrands

    2017 1 oz. Gold Krugerrand Coin

The Krugerrand is a 22-karat gold coin available in 1 oz. and fractional denominations. Krugerrands were the leading gold bullion coin since 1967 (inception). Until 1979 when the Canadian Gold Maple Leaf made its debut. However, they remain a popular investment choice today.

Golden Opportunity: Gold Coin Investing

Investing in Gold

Gold Coins have a proven track record of value increases beyond “just the gold.” Whereas, gold bars are only worth the gold within them.

Here at Vermillion Enterprises, we do recommend investing in Gold Coins over gold bars or generic rounds. Simply because of the added value and less stress for you when investing in this gold – whether purchasing or selling. Our recommended gold coins for investing are:

  • American Gold Eagle
  • Canadian Gold Maple Leaf
  • Austrian Gold Philharmonic

It is recommended that you invest in 1 oz. gold bullion coins versus fractional coins; however, fractional coins will still be of a greater investment over fractional bars. Again, because coins are collectibles as well which means there is a higher premium paid for at time of purchase and paid on at time of re-sale. Especially considering there is no hold at time of resale as well. Overall making an excellent investment piece.

In addition to considering the options when making a purchase of gold, you should also consider the resale of your investment should you decide to sell later. The following applies to the State of Florida – reporting on a State level and Federal level.

Invest: Buy Gold Bullion:

** This applies to Foreign Gold Bullion / Coins, non-denominational rounds and bars **

  • There is NO sales tax in the State of Florida on US Gold coins, or any U.S. coins.
  • Purchases UNDER $500 = State Sales Tax.
    • including fractional Maple Leafs, Krugerrands, and ingots.
  • Purchases OVER $500 = NO State Sales Tax.
  • Buying Over $10,000 & paying in Cash/cash equivalents = Form 8300 MUST be filled out and reported
    • Even if you split who’s paying in Cash – if the transaction total is $10,000 or more, and cash is used to pay it – it MUST be reported.
    • We accept payment in the form of cash, wire transfer, or check. Please note, checks will be held for 10 business days before product delivery.

Invest: Sell Gold Bullion:

** This applies to U.S. and Foreign Gold Bullion **

  • If you sell 25 coins or more of the Krugerrand, Maple Leaf, or Mexican Gold Onza, dealers are required to report the sale on Form 1099B.
    • Applies to total sales within a 24-hour period.
  • ***The Federal Government does not require reporting a sale, at any quantity of the following coins:
    • American Gold Eagle
    • Australian Kangaroo
    • Austrian Philharmonic
    • Chinese Panda
    • British Britannia Series
    • Australian Lunar Series
  • Selling Over $10,000 and receiving cash/cash equivalents = Form 8300 MUST be filled out and reported
    • Payment via check or wire transfer does NOT require Form 8300

Investing in gold can be complicated. Vermillion Enterprises strives to take the complication out of it. If you have any questions, or want to know more about investing in gold, please stop by the shop today! We will be happy to assist!

 

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GIA - Gemological Institute of AmericaNGC - Numismatic Guaranty CorporationNCS - Numismatic Conservation Society
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