Investing in gold is a good idea and I support and recommend it wholeheartedly. However, what many Ebayers fail to realise is the basic rule to investing in gold, viz, buy at the lowest possible price and work out your shipping costs inclusive of your bid price. Yes, the larger buyers can afford to pay a little over the odds but small investors cannot. It has to be said that larger buyers usually buy from dealers outside of Ebay but if they see something at a reasonable price they’re not going to pass it by. If you’re buying Krugerrands in ones or twos as investment, watch what you’re paying for them. Check the day’s gold price, www.goldprice.org will give you this, add a small percentage, for single coins no more than 5% and your bid price MUST INCLUDE SHIPPING. Always check dealers rates, www.chard.co.uk seems always a good benchmark, see what they’re selling at and you don’t want to pay more than that you want to pay less if you can. The best way to buy Krugerrands is to save your money and buy in bulk, over 5 at a time anyway, this lowers the sellers premium but is not always viable.
We’re all in the same recessive boat here and we all want to ensure a little for the future. Wake up, people, or the Ebay sellers are laughing all the way to the bank and your investment will end up a loss when you most need it. It could be the same Ebay sellers who buy them back from you at a reduced rate in the future!
Caution: When does 1oz of gold weigh more than an ounce? A full Krugerrand does contain one ounce of gold but the coin itself is not .999 fineness. It is a 22 carat gold coin, that is to say .917 fineness or 91.7% gold. This can be better understood by looking at the weight of the coin. The actual weight of a full Krugerrand is 33.9305 grams and a troy ounce of gold weighs 31.1040 grams. The difference of 2.8265 grams is the 8.3% of the coin which is the alloy, in the case of the Krugerrand, copper. Therefore, as far as a full Krugerrand is concerned, a description that tells you that you’re buying a .999 fineness or 99.9% gold item, is a fallacy put in the title to attract your attention.
Bullion coins come in a variety of grades of gold fineness. For example, an Australian Gold Nugget is, in fact, .999 fineness but unlike the Krugerrand it only weighs the one ounce. Ensure that the listing description matches the published specifications from reputable sources, such as the websites of the mints themselves.