Coins (FAQ)
Q: Why wouldn't I just buy gold coins?
A:
Quality gold coins are certainly a valid investment. If you have
enough money to purchase gold coins, and you wish to speculate by "investing" in them, then you certainly may. While the true value of gold coins
may be understood by gold dealers and collectors, they are usually
quite expensive and can be far beyond the financial resources and
mental comprehension of the average person. To get a better perspective on this issue, you simply have to watch
the video below...
While many people may argue that the average American is unfamiliar with the kinebar gold bullion card, you need to remember that we are primarily encouraging you to SAVE gold in your gold bullion savings account.
It is often considered to be a good idea to actually take physical possession of gold coins. If you can afford to purchase and personally possess gold coin or gold bullion in large denominations (1 ounce or more) then, by all means, please do so, but ask yourself a question based on the video above: If you have gold coins, or gold bullion, how would you ever get average people to exchange their goods and services at full value if they have no idea what the coin is worth, or even what it is??
If a serious financial crisis were to occur, it is certainly open to debate what would be accepted as "currency" among common everyday people. If Mark Dice (in the video above) couldn't give away a single gold coin valued at well over $1,000, what chance are you going to have of finding someone in business or on the street who would give you full value for gold or even a silver coin?
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THE MOST IMPORTANT THING TO REALIZE ABOUT THE KINEBAR GOLD BULLION CARD IS THIS: The small bar of gold bullion that is encased in each card actually has its weight in grams engraved right on the gold bar. This cannot be said about most coins!! With current values in the $10 - $250 range, the gold cards are definitely more transaction-friendly than expensive one ounce gold coins ($1,400) that DO NOT have their weights stamped on them.
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The kinebar gold bullion card comes in 0.5g, 1g, 2.5g and 5.0g. It will soon be available in a 0.25g size.
When used as currency, the kinebar gold card is designed to be convenient, verifiable, and comprehensible to the average person. They are meant to be used as currency. They come in very small denominations that are transaction-friendly.
Gold coins may be a good investment, but they are so varied and come in such large values with confusing denominations that their usefulness as a currency is practically zero. (You can't even give them away!)
Anyone and everyone should be able to look in the most recent newspaper or on the internet to learn the latest published price for gold and calculate the value of the small gold bar that is encased in the kinebar gold card.
Yes, I know that math is a challenge for many people, but with a calculator and some simple division, two parties could easily determine the current value of a gram or a half gram of gold. (Please remember that gold is measured in troy ounces - there are 31.1 grams in a troy ounce.) Take the published price of gold and divide it by 31.1 to determine the value of 1 gram of gold. Divide that by 2 to determine the price of one-half gram.
Here is a challenge for YOU!
How much would you pay for the above coin?
It's easy to make fun of someone on a video, but when you look in the mirror, you realize that you are just as uninformed about the realistic value of the precious metals that are found in coins as everyone else is. If someone showed you a collectible gold dollar coin, or a $50 Canadian gold coin as in the video above, or a silver American quarter, it is likely that YOU would have absolutely no idea what it was worth.
The first problem with many
gold and silver coins is that a numeric denomination is
usually stamped on the coin itself. If you showed most Americans an
old, truly
silver quarter (1932-1964) they would probably only give you a quarter
for it, even though the silver that it contains is worth a lot more.
Do you think that a shopkeeper would be willing to
give you a large coffee and a newspaper
in return for the 1950 silver quarter above?
Should they?
How much do you think the above quarter is worth?
The one place that you will NEVER be able to get decent value for gold coins is through a gold dealer or gold collector. They are not ever going to give you full value for your coins. They are going to give you dealer "buy" prices, not dealer "sell" prices. Most likely that will be at least 25% less than you might expect.
If you ever want to get full retail/currency value for any type of coin, you are going to have to find someone who is willing to swap your coin for something of equivalent value. That is how all currency operates. You don't sell your dollars for food, you exchange them. You will never be able to sell gold coins for their true value. You may be able to exchange them for goods and services of equal value, but the expensive coins will only be convenient for large purchases.
In
short, the small
denomination kinebar gold bullion cards are NOT designed to be bought
and sold for speculative profit. They are designed to function as real
currency whose value is stable, trusted and verifiable. They are in
the smallest denominations possibe in order to be "transaction
friendly". Small denominations, weight stamped, serial number,
certification and a very unique hologram literally cut by laser into
the gold itself make kinebar gold cards far more likely to be accepted
and
understood as a worldwide currency.
The simple truth is this: With the exception of China, 99.99% pure gold bullion is accepted as legal tender in all the countries of the world. No other coin and no paper currency can make that claim.
Is it possible that official central banks could be counterfeiting coins??
