BRICS is loose term created by Goldman Sachs to represent the world’s five leading emerging economies. The original list included four: Brazil, Russia, India and China. South Africa was added to the list in 2010.
Combined, the BRICS nations represent 3.21 billion people, roughly 41.5% of the global population.
Over the last year more stories have emerged in the news about the desire for BRICS nations to seek an alternate currency to the US dollar for their international trade. Often referred to as de-dollarization. The removal of the dollar as the reserve currency used in international trade.
Russia has already established the Moscow World Standard to compete with the LBMA and other legacy markets.
In response to economic sanctions following the invasion of Ukraine, Russia’s gas agency began demanding payments for oil and natural gas in Rubles.
Russia’s Central Bank began exchanging gold for Rubles and many countries are now trading oil on a new gold-standard.
The PBoC, the central bank of China continues adding gold bullion to its reserves and holdings.
The 1970s was a time of global economic crisis. Following the oil crisis of 1973, Nixon led the collapse of the Bretton Woods system as part of his measures to fix the stagnant economy.
Nixon resigned in August of 1974 following the Watergate Scandal. Days later, President Ford signed legislation which repealed Roosevelt’s executive order restricting private gold ownership.
This global appetite for gold has the potential to give emerging nations an advantage over the value of their assets and international trading dynamics.
Many emerging nations are rich in oil, minerals and mining. Some of which are necessary components in the development of batteries, solar panels and other advanced manufacturing.
Private ownership of precious metals now continues to grow every year. During the pandemic, from 2020 until 2022, investors bought more than 75 million troy ounces of American Silver Eagles.
The US Mint has been unable to keep up with investor demand which has caused premiums to rise.
Over the same period gold investors bought more than 5 million troy ounces of Gold Eagle and Gold Buffalo coins.
Last year was a banner year for Central Banks wanting to buy gold bars and silver.
Recent reports from the Reserve Bank of India and other countries have shown that gold and silver continue to be a safe haven store of wealth in times of rising inflation.
The central bank’s gold reserves jumped from 668.25 tons to 743.84 tons in September 2021. That’s the largest purchase that has been reported by the Indian central bank since 2009. This increases the bank’s gold portfolio by more than 11% compared to a RBI report from September 2020.
The Reserve Bank of India (RBI) also purchased 118 tons of silver in 2020 and 2021.
Economists believe that RBI is solidifying its portfolio by increasing its gold and silver inventory during a time when inflation is affecting all major fiat currencies worldwide. Buying gold has been a trend in central banks worldwide in recent years as economies continue to recover from shutdowns related to the coronavirus pandemic.
The Monetary Authority of Singapore registered 26 tons of gold was bought by their central bank between May and June.
With economic outlooks from the Federal Reserve bleak, showing that inflation has continued to burden the US Economy, regulators are anticipating multiple interest rate increases from the Fed in the coming months as an attempt to reign in the rapidly increasing prices of basic necessities.
Recent economic reports released from the US Government show that consumer spending at levels needed to sustain the economic recovery.
However, with rampant inflation driving prices of everyday items to higher prices, the day to day frustration most American’s feel at the grocery store and gas pump has pushed the Biden administration approval ratings to new lows. Many central banks are also preparing for the future.
Many countries are looking towards cryptocurrencies as a way to help facilitate trade, with China pushing other countries including the United States to adapt as a way to prevent future supply chain disruptions.
It is a cycle that may seem familiar. Collapse of the housing sector, collapse of the stock market, bank runs and shutdowns. You may remember some of the symptoms leading up to the 2008 financial crisis. It’s looking similar this time around. The stock market drops and trillions of dollars in wealth vanishes into thin air for millions of people.
Some investors started shifting money into more stable assets throughout the pandemic. Few assets are as trusted and as reliable as a store of value as is gold.
Shopping for gold coins can be overwhelming and confusing in the beginning. There hundreds of online bullion dealers to choose from, and almost every single one offers the exact same product at a different price.
A wise choice for if you’re interested enough to buy gold coins is to stick with holding items that are widely available and likely to be widely recognized. This will make it easier to sell later on.
The American Eagle and Maple Leaf are two of the most widely recognized modern gold coins in the world. Others include Krugerrands, Kangaroos and Britannias.
Vintage coins are also an excellent option. Especially for fractional gold. These coins are steeped in history.
Most of the world economies operated on a gold-standard up until the 1920s. Gold coins were commonplace and circulating for everyday transactions.
Historic gold coins are also a great example to show how gold is a long term store of value and wealth.
Many are still legal-tender today based on their face value. Though the intrinsic value of the metal is worth significantly more.
Coins like the Gold Corona, $10 gold eagle, British Sovereigns and Swiss 20 Francs are often some of the lowest premium fractional gold coins available to investors in current markets.
What makes sovereign gold coins a better investment?
Modern going coins are minted in mass quantities each year. The designs are widely known amongst investor and collectors. Many investment-grade coins, such as the Krugerrand, have had the same consistent design for decades.
Simply put: coins minted by a government come with a guarantee of the weight, purity and quality.
The purity, weight and specifications of these coins is well documented and a well-trained eye can usually identify counterfeits.
Vintage sovereign coins, such as British Sovereigns, 20 Francs Coins from the Latin Monetary Union and Gold Pesos from Mexico all make a solid gold investment.
Historic gold coins are most often in circulated condition and will show some signs of handling, light scratches and other minor imperfections and you can usually buy them at a better price than modern coins.
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How to leverage eBay’s loyalty program, eBay Bucks, to earn rewards to buy gold and silver below spot price.
eBay Bucks is a rewards loyalty cash-back type program from eBay. The program pays you a 1% cash-back credit on eligible purchases. You can redeem the cash-back credits towards future purchases.
eBay Bucks credits are earned throughout each quarter. The maximum amount of eBay Bucks you can earn per transaction is $100. However, you can earn up to a maximum of $500 in eBay Bucks per quarter.
eBay Bucks are available to spend on eBay at the beginning of the quarter after they are earned. Earned eBay Bucks must be spent during the first month of the quarter after they are earned.
Throughout each quarter eBay runs promotions that increase the earnings amounts to 8%, 10% or 15% above the base amount of 1%.
Items listed in the Bullion category and subcategories are ineligible for earning eBay Bucks. However, many reputable dealers will list bullion products for sale in alternate categories that do earn eBay Bucks.
Towards the end of the first month of the quarter eBay will sometimes run a Bucks promotion. During this time it’s possible to double-dip. If you have eBay Bucks to spend you can earn additional promo Bucks if you spend your accrued Bucks on eligible items.
eBay Bucks that you earn, both regular and bonus Bucks, can be spent on anything eBay sells, including silver and gold bullion.
There are a bunch of different ways to leverage eBay Bucks when stacking silver and gold. Here are a couple of examples of ways to leverage eBay Bucks.
Buying Items to Flip, Then Reaping the Rewards
Some people will find items that earn the maximum amount of Bucks per transaction ($100) on items that are being sold for close to melt value (such as $20 Gold Double-Eagles) that can be flipped easily for more than melt value.
Then leverage the earned Bucks to buy whatever they want. This is similar to credit card churning. If you have a rewards credit card that earns 2%-5% cash back on these types of transactions that adds a bit more.
Dollar-Cost Averaging Below Spot Price With eBay Bucks
eBay Bucks can also be used to offset the cost of regular bullion purchases. For example, let’s say you regularly purchase 20 Francs Gold Coins. These can often be found on eBay for around 5% premium. So if melt is around $280, you can find them on eBay from major dealers for around $295. During a 10% Bucks promotion you’d earn $29.50 in Bucks on that purchase. If you regularly purchase 2 coins a month during the earnings period while 10% promotions are running you’d earn $59 in Bucks each month, or $118 during the 2nd two month period of the quarter.
Your out of pocket cost for the 4 coins is $1180 and you earned $118 in Bucks credit.
During the first month of the following quarter, use the $118 in eBay Bucks credit to offset the cost of 2 additional 20 Francs coins. The cost of 2 coins could be $590 minus the $118 in credit for an out of pocket cost of $472.
All together, you’ve spent $1652 on (6) 20 Francs coins, which is roughly $275 per coin. This all assumes that the price of gold remains relatively flat the whole time, your average cost per coin is $5 below melt.
These are just a couple of ways to leverage Bucks. Hope this helps.
When you’ve come to realize that making an investment in precious metals may be of interest to you it’s important to have additional knowledge of the industry before you spend money. Here are some important factors to consider before you buy gold or other precious metals.
Price transparency
The spot price of gold is controlled by global commodities markets and changes frequently based on market conditions. When buying gold online the dealer should provide an accurate price for the gold that you’re buying based on the current spot price, plus the dealer premium.
Mint and weight: Gold dealers sell bars, coins and other forms of refined gold storage that is produced by a specific company or mint. Some Mints, such as PAMP Suisse, Valcambi, and the Royal Canadian Mint (RCM) are more reputable and widely recognized than others and may come with a higher premium.The weight of gold coin or bar is the largest contributing factor to the cost. In general, the greater the weight, the lower the premium you’ll pay over the spot price to the dealer.
Additional fees: In addition to the base cost of the precious metals, online bullion dealers may charge a range of fees.The dealer premium is the base markup over spot price that you pay when you buy gold. Each dealer charges a different premium. This is an important factor to consider and comparing prices of the same product with different dealers can show a large difference in price. FindBullionPrices.com lists multiple dealers selling a particular product, along with the price that they charge and breaks down the price to show the fees.
Dealers may also include transaction fees based on payment methods. Typically, the lowest price will be for paying with a cash equivalent such as e-check, ACH or check. Buying gold with Credit Cards, PayPal, Bitcoin and other payment methods will incur a fee of around 4%.
Shipping charges can also be added. Some dealers include the cost of shipping for free with a minimum purchase amount. There are many dealers whose minimum purchase amounts are around $100 for free shipping.
Taxes: Some states require sales tax on gold and precious metals purchases. In some states there may be minimum purchase amounts that are exempt from sales tax. Since the Supreme Court ruled in favor of the States in South Dakota v. Wayfair, many online gold dealers have begun to charge customers taxes on bullion purchases. Some online dealers have found loopholes to avoid charging and collecting sales tax in those states.
Posted prices: Trusted and reputable online gold and silver dealers will have the price of each item prominently displayed on their website. The posted price, plus any transactional or shipping fees will be conspicuously and noticeably displayed on their website. When calling companies that do not display the price per ounce for gold or silver may try to sell you numismatic coins at a much higher premium. These bait and switch tactics are not used by trusted and reputable online bullion dealers.
Management fees: You may choose to have the dealer store your gold after purchase, making them the custodian. Storing precious metals with a dealer will incur some ongoing management fee, similar to the fees charged at any brokerage for investment portfolios. The only way to avoid ongoing storage fees is to take physical possession of your precious metals. If you don’t have an adequate safe at home where you can store your precious metals you may want to consider storing your metals in a safe deposit box at your local bank. Taking possession of your precious metals at a later time can be time consuming. If you don’t hold it, you don’t own it.
Buying and selling
Precious metals are often used as a hedge for storing wealth in times of economic volatility or political uncertainty. The liquidity of gold and silver is important. Precious Metals dealers play an important role in the secondary gold and silver bullion market.
There are some things to consider when you are ready to sell or need to sell some of your gold investment.
Gold is typically held physically in bars or rounds ranging from as small as 1 gram to a kilo. When it comes to understanding how to buy gold, here are some things to keep in mind:
Quality: The standard quality of gold (and silver) in fineness is .999. Gold and silver.Some gold coins, such as the American 1 oz Gold Eagle or South African 1 oz Gold Krugerrand are comprised of an alloy reducing the fineness of the gold to .900. This adds durability that allows the coin to be handled. However, the coin still contains 1 troy ounce of pure gold.Some other gold coins, such as the Canadian 1 oz Gold Maple Leaf or American 1 oz Gold Buffalo are minted with a fineness of .9999 making them softer and can be prone to scratches depending on how they are handled and stored.
Transaction fees: Despite what some may say, it is not standard industry practice to charge customers a fee to sell their gold. When it comes time to sell your precious metals, any reputable dealer will make you an offer that is fairly based on the current spot price. The price will depend on the specific item that you are selling, the fineness and quality of the gold or silver, the mint or manufacturer and possibly several other market factors. Trusted and reputable dealers will typically offer between 90%-98% of the current spot price. There are some exceptions. Sovereign government coins, such as Gold American Eagle or Canadian Gold Maple Leaf coins can usually be sold at spot price or for a slight premium above spot price, depending on the dealer and market conditions.
Direct sales: When selling gold, there are several options. A seller can typically sell their gold back to the dealer that they originally purchased from, but the dealer will often offer a lower price than the spot price and/or transaction fees.Online markets like eBay allow gold owners to sell directly to buyers, however, eBay auction fees and subsequent PayPal fees can quickly eat into the costs.
Storing precious metals
Misplacement or theft of your precious metals are real concerns. Gold can easily and quickly be turned into cash at any pawn shop, local coin shop or “We Buy Gold” store. Investing in a proper, TL rated safe that can be secured in some way to the foundation of your home may be necessary. Having an adequate security system is also important in deterring would-be thieves should you chose to store your precious metals at home.
Having a safe-deposit box at your local bank is also an option to consider. However, it’s important to note that the contents of safe-deposit boxes are not insured by the bank and are not covered by the FDIC.
Most home-owners insurance policy will not provide coverage for precious metals or numismatic coins without an additional policy rider.
Reputation
It’s important to find trusted and reputable gold dealers to do business with. Taking the steps necessary to ensure that you are working with a reputable gold dealer helps reduce the risks of encountering counterfeit bullion. You should have total confidence in the dealer when you are ready to buy gold.
Transaction history: One of the simplest to determine if a dealer is trustworthy and reputable is to look at online customer reviews of bullion dealers. There are also many third-party companies that record customer transactions and customer satisfaction.
Learn Why Gold Bars are a Good Starting Point for Beginning Investors
Gold has been one of the most popular ways of accumulating and building wealth for thousands of years. For investors, gold bars are one of the most economical and convenient way of diversify investments into precious metals as a way of preserving wealth.
There are many types and sizes and weights of gold bars available. Various sizes of Gold bars are available that are intended to suit the needs of individuals with different budgets. Fractional gold bars are a popular choice for many and there are suitable options at all price points.
Private mints operate on a different business model than sovereign mints, thus gold bars are typically priced lower per ounce than gold coins which makes adds to their attractiveness as an investment.
Gold Bars By Weight
Each size gold bar has it’s benefits and trade-offs when considering them for investments. Gold bars come in a variety of weights and sizes. Typically, there are two weight classes of gold bars, those that come in sizes measured in grams and those measured in troy ounces.
Gram size gold bars are generally the least expensive and easiest to store but carry a higher premium over gold spot price when factored on a per troy ounce basis. These bars are available in many different sizes, from as small as one half gram up to one kilogram.
Troy ounce size gold bars have a lower premium per ounce but require a larger cash outlay at the time of purchase.
1 Gram Gold Bar
One gram size gold ingots are one of the most common ways beginning investors buy gold. They are inexpensive and you can buy them from virtually any online bullion dealer or your local coin shop. Newly minted one gram gold ingots come sealed in a manufacturers assay card which displays the weight, the purity, the mint and other particulars about the bar.
One major advantage of one gram gold bars is that they are very easy to liquidate if the need arises.
2.5 Gram Gold Bar
Buying 2.5 gram gold ingots provide investors a hedge against inflation like larger bars, but at a lower point. 2.5 gram goldbars that are made of .9999 fine gold are still very affordable and have a lower premium than their 1 gram counterparts.
5 Gram Gold Bar
Five gram gold ingots make a great investment. At this weight the premium per gram over spot price because more reasonable for beginning investors. At current gold spot prices, 5 gram gold bars can often be purchased for a few hundred dollars. It’s a small price to pay to have peace of mind and financial security for the future.
10 Gram Gold Bar
At just under 1/3 of a troy ounce, the 10 gram gold bar provides a nice entry point for a gold investor. At this weight, one can feel the weight of this bar. This size allows you to grow and diversify your portfolio with an affordable low-premium investment option.
PAMP Suisse Lady Fortuna 10 gram gold bar in assay
For new investors, there is an opportunity to buy a 10 gram gold bar at spot price from SD Bullion. More details can be found on our spot deals page.
20 Gram Gold Bar
The 20 gram gold bar is another popular option for those who want to purchase less than an ounce of gold at a time. It weighs .64 troy ounces. It is a convenient investment for those who are accumulating gold on regular basis.
For individuals who wish to purchase gram bars in larger sizes, options are available in 50 gram and 100 gram bars at a higher price point but often with lower premiums.
Troy Ounce Gold Bars – Advantages and Sizes
Long-term investors stack one ounce gold ingots or larger. They are a popular size for investors due to their low premium over spot gold price.
One troy ounce gold bars are produced by many private mints as well as some government mints. Each one troy ounce gold bar will contain purity levels ranging from .999 to .9999 gold, depending on the mint.
1 Troy Ounce Gold Bar
One ounce gold bars come from their respective mints sealed in an assay card that will show the purity, weight and other minting details. Each one ounce gold ingot will also have this information engraved or stamped on its surface.
Most of the time, it will be cheaper to buy secondary market 1 oz gold bars from online bullion dealers. Secondary market gold ingots will be tested by the dealers for purity before selling.
10 Troy Ounce Gold Bar
Serious gold investors will look to stack 10 ounce gold ingots as close to spot price as possible. 10 ounce gold bars feel much heavier compared to their size due to the density of the gold.
Gold Bars by Mint
Gold bars are minted by both reputable private and sovereign mints. Popular private mints for gold ingots of all sizes include Asahi Refining, Istanbul Gold Refinery, RAND Refinery, Argor-Heraeus and PAMP Suisse. Some sovereign government mints that produce gold ingots include the Perth Mint and the Royal Canadian Mint.
Gold Bar Premiums
Premiums on gold bars will vary from dealer to dealer and will largely depend on the size of the bar. Smaller, gram size gold ingots will carry a higher premium relative to the gold spot price. Larger gold ingots, those that contain one troy ounce or more, are often available very close to gold spot price.
On 1 gram gold bars the premium could be as high as 20% over the value of the gold bar. For gold bars that weigh one troy ounce the premium can be below 1%.
Where Can I Buy Gold Bars in All Sizes?
You can use FindBullionPrices.com to search for Gold bars of all sizes and weights that are available from many online bullion dealers. FindBullionPrices.com tracks prices of gold bars from many trusted and reputable online bullion dealers and will help you find the best price when you’re ready to purchase.
Canadian Gold Maple Leaf coins debuted in 1979 with .999 pure gold content. Several years later they were enhanced beginning in November 1982 to include .9999 pure gold.
At times, the Royal Canadian Mint has even achieved .99999 pure gold content in its Canadian Gold Maple Leaf coins. Each Canadian Gold Maple Leaf coin is available in 1 oz, ½ oz, ¼ oz, 1/10 oz, 1/20 oz, and now 1 Gram. The coins have face values according to their fractional weight, based upon the $50 (CAD) value of the 1 oz. coin.
Gold Maple Leaf bullion coins are a popular way to invest in Gold. Many investors consider the Canadian Maple Leaf to be one of the world’s most beautiful and one of the most recognizable Gold coins. The obverse of the Gold Maple Leaf features a silhouette portrait of Queen Elizabeth II. The reverse of these Canadian Gold coins depicts the iconic Canadian maple leaf, a national symbol of Canada. Each Maple Leaf Gold coin is legal Canadian tender guaranteed by the government of Canada for its weight and purity.
How much is a Canadian 1 oz Gold Maple Leaf Coin Worth?
The Canadian 1 oz Gold Maple Leaf coin is produced by the Royal Canadian Mint annually. The coin carries a face value of $50 CAD. The mintage numbers for the regular edition of the coin are typically over one million.
The Mint has produced a number of special edition Gold Maple Leaf Coins that have limited mintages which have gained interest of collectors and have appreciated in value based on their collectability and rarity.
A typical Canadian Gold Maple Leaf 1 oz Coin maintains it’s value relative to the gold spot price. You can typical buy Random Year Canadian Gold Maple Leaf 1 oz Coins from online bullion dealers for around 2% over the gold spot price.
When you’re ready to sell many dealers will buy Gold Maple Leaf coins from you for around gold spot price. Typically, a 1 oz Gold Maple Leaf Coin is worth gold spot price.
