In 1907, then President Teddy Roosevelt commissioned sculptor Augustus Saint Gaudens to create new gold coins for the United States.   In the process, the coins were created without the “In God We Trust” inscription.   The public realized after some time that the words had been removed and they demanded that the “Motto” be restored to the coins.   In the middle of 1908, the US Mint halted the production of “No-Motto” Saint Gaudens coins.    The coins were then restored with the Motto of “In God We Trust” to the reverse of the coins just below the eagle.

The Saint Gaudens (1908) Gold Coins with “No Motto” are much scarcer than the $20 Saint Gaudens Gold Coins with Motto version of the same grade. We would recommend that investors certainly consider adding the “No Motto” versions to their gold investments.

Demand for gold has risen sharply in the United States during the last few years. Before and after the stock market began falling, some investors diversified their holdings with undervalued gold and silver assets. With the stock market’s recent gyrations, a growing number of investors have already benefited from their diversification into gold. Most gold investors agree that it’s still a good time to diversify into gold and silver.   The upside potential is strong.

Demand for gold has also expanded from an unusual source: gold mining companies. Many of them have been covering their forward sales by purchasing gold in the open markets. The process that sent gold down in the 1990’s is being reversed and the result is higher demand, which should lead to higher prices.

When the price of gold is low – as it has been during the last two decades – the entire process grinds to a halt. In fact, worldwide gold production is falling because mines with high costs stop producing. Numerous gold mines around the world have been closed and it takes quite an effort to revive production.

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So Should I buy Gold Bars or Gold Coins?

This really comes down to your investment profile.  For the more novice to intermediate investor who is looking to invest in gold we would recommend purchasing gold coins. Because coins are mass produced, they are available at competitive prices compared with similar gold bars.  Gold coins are easyto identify as well, and have a great secondary market.  This is in contrast to gold bars which can be very difficult to resell due to the large size of potential investment.

Gold Exchange Traded Funds
One of the easiest ways to get exposure to the rising gold market is via an investment called an ETF (or Exchange Traded Fund for short). An ETF is like a mutual fund but doesn’t carry the high management fees that a fund does. One example includes the GLD (or SPDR Gold Shares), which seeks to replicate the performance of gold bullion. This is traded on an exchange and can be bought and sold at prevailing market prices, meaning that there is a good level of liquidity with this type of investment.

Gold Bullion Bars
Gold Dealers will sell bullion bars in various sizes from one ounce to one hundred ounces or greater.   Yet this is a very costly proposition and for most investors buying gold bars is simply an unaffordable investment.   Gold Bars are typically purchased by governments, institutions or very sophisticated investors.   For more information on this, see our post “Gold Bullion or Gold Coins?”.

Gold Coins
Gold Coins are a great investment and as far as we are concerned, the best way to invest in gold. Sure maybe we’re biased, but it’s a proven fact that gold coins have closely followed the path of gold prices over the past decade.    For any investors looking for more information on How To Invest In Gold, please contact us at InexpensiveGold.com today.  One of our representatives will be happy to review your personal financial situation and recommend a plan that will suit your needs and get you the right exposure to gold in your portfolio.

If you had listened to our advice over the course of the past several years, you would have made a great deal of money. We have consistently advised clients to accumulate $20 Gold Pieces and we are still strongly urging investors that now is still a great time to invest in gold. Our research analysts believe the index still looks very strong technically and could increase a significant amount by the end of 2010. We believe this is a great opportunity for buy and hold investors, or even those looking for short-term trades.

The US Rare Coin market has been in the midst of a very strong bull rally. With Gold trading over $1000/oz , Gold coins, in the meantime, have shown an even better price appreciation. Some coins have moved up 80-100%! I’m here to tell you that this rally has just begun. Take a look at the chart below of the mint state gold coin index. You’ll see that these coins still have quite a way to go. So, yes, is my answer to “Should I Buy Gold?“.

We also recommend purchasing coins graded Mint State 63 or higher due to their natural scarcity and general strong liquidity. An additional advantage to buying $20 gold pieces is that the underlying gold value comprises a large percentage of the overall price, giving the investor a double-play profit opportunity — one on the scarcity premium attached to the coin, and the other on gold value. There are principally two design types for the $20 gold pieces — the Liberty (minted 1845-1907) and the St. Gaudens (minted 1907-1933).

1. You will protect your assets
Rare coins have the distinct advantage of having intrinsic value. In other words, the metal the coins are made of has worth in and of itself. The simple truth is, precious metals never go out of style. They’re always in demand. And when your precious metal is in the form of an historic rare coin, it’s even more valuable.

2. Tremendous upside potential
Right now, precious metals are far below their historic highs. And if history tells us anything, whatever comes down, usually goes back up. I can only say that the potential is definitely there. And when precious metals are in the form of rare coins, the price tends to go up farther and faster than just plain bullion.

3. Gold coins aren’t being made anymore
It’s only common sense when you think about it. Any time the world needs more gold or silver, we can just dig it out of the ground. But gold or silver in the form of a rare coin is completely different. We can’t go back in history and create more historic coins. Whatever is available is all there is. So, your precious metal is even more precious in the form of an historic coin.

4. Great Inflation Hedge
Back when I was young, a $20 gold piece would buy a high-quality men’s suit. I can now buy several high-quality suits with the same $20 gold piece. Why is that? Because paper money isn’t worth as much these days. But precious metals are. They retain their value in spite of inflation.

5. Gold Coins are Liquid!
These assets have the rare advantage of being easily bought and sold because standardized grading allows you to buy coins sight unseen. And, computerized national trading networks give you ready access to a market for your coins.

6. Protect your privacy
I remember the time when we took our privacy for granted. Those days are gone. But this is one investment no one but you and your family needs to know about.

7. You’ll protect your wealth from confiscation.
Back in 1933, the government confiscated all gold bullion and bullion coins. Federal law gives them that power in times of national emergency. But collectibles, such as rare coins with recognized collector value, are exempt. So, the next time the folks in Washington D.C. start looking to regulate or confiscate gold, your coins will not be touched!

8. No tax consequences until liquidation.
If your coins increase in value, you won’t be taxed on your profit until you sell them. And if you simply trade your coins for other coins of equal or greater value, there still are no taxes (if it’s a qualified like-kind trade). I suggest you talk to your tax advisor about this one.

9. Own a piece of history.
Many times, rare coins are beautiful works of art created by celebrated artists. But in every case, they’re an important part of their era. Holding one is like having a golden or silver moment of time in your hand, passed down from a bygone age. Because of this, they make excellent heirlooms or mementos for you to pass on to future generation such as your children or your grandchildren.

10. Less volatility versus gold bullion.
Gold coins have proven over time to actually be less speculative then the actual price of gold. It’s a proven fact.

I suggest you look into rare coins yourself. Do your own research. I think you’ll see the wisdom of buying your precious metals in this form, and remember most of these companies charge huge commissions because of the overhead incurred. With Inexpensive Gold you will not be charged excessive commissions; our spreads are very low compared to the 20-50% spreads that some of the other companies will charge. If you value your money and want to concentrate on your investments without worrying about exorbitant sales charges. then give us a call. I’m sure you will be pleased with our services.

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