Gold stocks are not an investment in gold. They are stocks first and gold second. This is an important distinction in gold coin investments for investors to recognize; because, once it is understood, justifying gold stock ownership as a substitute for gold coin investing alone becomes very difficult. As a matter of fact, in the last three stock market crashes, i.e. 1929,
1935 and 1987, gold stocks also tumbled into the abyss, belying claims by stockbrokers that they can serve as a hedge against disaster in today’s times of uncertainty.
Gold is “Unlike” Any Other Commodity…
Gold trades on the commodities exchanges along with pork bellies and other commodities, but here the similarity ends with all precious metals investing. Unlike other commodities, which are produced strictly for consumption, gold is the only commodity that is accumulated and saved - any gold coin expert will know that. It is also the only commodity that is used
as money to facilitate future consumption.
Most of the gold ever produced still exists today - many coin dealer specialists will also have gold in the form of jewels, bullions and other forms. You cannot say the same thing about pork bellies, soybeans or sugar. The gold you might someday purchase from a rare coin dealer could very well have been part of the treasury of Rome or used by Marco Polo in
his first visit to China, or circulated as currency in the Old West. This is why we especially appreciate gold commemorative coins — they depict certain times in history, and are our own historic little treasures.
Tangible, Investment-Grade Gold Coins…
There are many gold coin investments such as the gold commemorative coins, that will by far out-perform any other gold product on the market today. Certified and investment-grade gold and silver coins are not all created equal. We only deal with the top two grading companies, i.e. NGC and PCGS who are the only industry-wide recognized grading company.
WARNING: Don’t get these companies confused with other similar names, ensure that they are either the Numismatic Guarantee Company or the Professional Coin Grading Service. We warn you against these similarly named companies (they use similar names, for example, instead of NGC they will call themselves NGI or NCI, and instead of PCGS, they will call themselves PGCS in order to confuse you and to get your business. Please know the quality is inferior in the industry. In other words, they will not be worth half of the value of the NGC or PCGS, so it will appear as though you are getting a deal when you are getting into inferior coins.) Again, these are the only two companies that are recognized in the industry as “industry standard” and, thus, the only companies that we do business with or will recommend.
This money (asset preservation) function of gold separates it from the commodity complex and gives it a special place at the very top of the value scale. As such, gold, whether in the form of gold bullion or investment-grade gold coins, otherwise known as pre-1933 gold coins or other tangible gold coins is commonly referred to as the “enduring” commodity.
Call or write us any time if you have any questions, or would like to discuss this further. We look forward to speaking with you!
Very sincerely yours,
Jim Burg
CEO
Superior Discount Coins
