Bargain Bin Gold/Silver
Due to the current uncertainty because of the Coronavirus crisis, demand for precious metals has increased dramatically in recent times. In fact, demand for gold coins and small gold bars is now so high that many gold dealers are unable to fulfill it. Yet there might still be a way to procure yourself some of these shiny coins and/or bars if you are willing to consider a category that many investors, especially new investors trying to ride the current wave, shy away from and that is bargain bin gold/silver.
So what does the term bargain bin gold/silver refer to? Unlike junk silver which is a term that describes silver of lower purity, bargain bin gold/silver describes gold/silver bullion coins or bars that have some kind of blemish that lowers their resale value. Such blemishes are most often scratches on the surface of the coins or bars but it can also be dents that were caused when the coins/bars dropped onto a hard surface. In the case of lower purity gold coins such as 22 karat coins (91.67% gold purity), blemishes can also develop over time through oxidation in the form of red spots. That is because these coins were alloyed with copper. Gold of 91.67% purity was referred to as crown gold in the past as it was the standard purity of gold coins in history. All pre-1933 US gold coins were made to that purity standard as are the American Gold Eagles even today.
Even though most gold bar/coin owners are probably very careful when stacking their gold, scratches can occur very easily on such a soft metal as gold, even more so if it is gold of 24 karat (99.9% or higher) purity. Even a fingernail could scratch the surface of such a delicate gold coin. That’s why it is always advisable to wear special gloves when handling gold. Silver is harder than gold, so not quite as susceptible to scratches but I think it’s good to develop a habit of always wearing gloves when handling precious metals of any kind.
One thing I find very annoying and can’t quite understand is that some mints take less than optimal care when handling their own products. Especially the Gold Maple Leaf coins that are produced by the Royal Canadian Mint have developed a notoriety for being super easily scratched. That is partly due to the fact that they don’t have raised rims, so even just placing one Gold Maple Leaf on top of another (for example when stacking some of these coins inside a safe) can already be enough to scratch the delicate surfaces. Quite often, buyers of these coins were unpleasantly surprised when they received their newly ordered coins and discovered that they already had scratches on them.
Regardless how damaged your gold coins or bars are, as long as they are genuine you should always be able to get at the very least the spot price of the metal for them. That means also that if you are looking to buy gold/silver coins or bars for the lowest possible premium above the spot price, buying bargain bin gold/silver is the way to go as long as you can live with the visible blemishes that these products inevitably have. Money Metals Exchange is one of the dealers that allows you to buy bargain bin gold for only about 60 USD (per ounce) above the gold spot price as well as bargain bin silver for only about 4 USD (per ounce) above the silver spot price. Click on the links above to save some big money when buying bargain bin gold/silver today!