When it comes to gold coin investing it’s a good idea to keep one eye on the gold spot price, and the other eye on the actual price of the coins you’re choosing to build your investments with.
While the price of gold coins such as American Eagle tends to stay within the same area as the spot prices, these prices are not adjusted on an hourly or even daily basis, and so while the day’s market closing can give you a good idea of what to expect the next time you do some gold coin investing, the coin’s price will not always reflect the same number as the spot price.
This can work to your advantage of course. By keeping an eye on the spot price and keeping an eye out for certain tendencies within the market, you’ll know when to get in early and when to buy before a surge and you’ll know to sell a few when it peaks.
This isn’t to say that the gold spot price is something you need to worry or fret about like a stock investor frantically yelling, “Buy! Buy! Buy! Sell! Sell! Sell!” into a cell phone. Certainly, one of the primary benefits when you get into gold coin investing is that it tends to be a relatively safe and relaxed investment when compared with several other options. That said, you can most certainly maximize your gold coin investing by making sure you buy them at just the right time.
This holds true even for long term gold coin investing, not just the short term. If you’ve been thinking about buying a few more coins then you’ll want to keep an eye on the spot prices. When the price starts climbing you can go ahead and seize on the opportunity to buy another half ounce or an ounce before the surge occurs and bumps the coin price up a bit.
Again, you don’t have to be one of those people who always carries a copy of the Wall Street Journal and who is constantly hustling and bustling to squeeze every last cent possible out of their investments, nor does it mean that you have to worry all day and night about sudden drops, as, well, sudden price drops just plain aren’t very common in gold prices, and in the rare instances that they do, they tend to recover as quickly as they fell. All we’re saying is that it’s a good idea to make a quick spot-price check part of your daily routine. When you get up in the morning with your coffee go ahead and take a look and see what price gold closed at the night before.
Of course even if you choose to simply buy some gold coins when you have the money to do so and you choose not to worry about the spot prices much, you can still rely on your gold coins investment to generally improve in value over time, and to at the very least not usually suffer a major downturn. The truth is that you should invest in the metal in whatever way you find comfortable. That might mean simply keeping your investment somewhere safe and not worrying about it too much or it could mean checking the spot price several times a day. With gold, the choice is yours.
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