Safe Haven Metal #1 Trusted Gold IRA Provider

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[…] Safe Haven Metal company logo of a shield with the letters "SHM" as the body, and the company name in over under format, silver and gold colors
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How is Gold Price Determined?

How is Gold Price and Value Determined with any Precious Metal?

The current gold price determines the value of gold and silver products. Yet involves considering several important factors that contribute to their market worth. Here are key points on how to value these precious metals:

Supply and Demand Effect on Gold Price

Supply and demand dynamics significantly influence gold price  and the value of gold and silver products. Products with limited mintages, unique designs, or ties to significant events may be in higher demand among collectors. Limited availability can lead to increased premiums, especially when there is a surge in interest or when dealers face challenges in acquiring such products.

Conversely, products with ample supply and lower demand may have lower premiums. Government mints that regularly produce popular bullion coins like American Eagle or Canadian Maple Leaf often have stable supplies, which can contribute to more consistent premiums.

Precious Metal Content and Premium

The gold price and thus the value of gold and silver products has a close tie to their metal content. The measurement of which is typically in troy ounces. Global trading of precious metals occurs in commodity exchanges, and their prices fluctuation is causally from simple supply and demand dynamics. The spot price represents the current market value of one troy ounce of the metal.

However, when purchasing physical gold or silver products, buyers pay a premium over the spot price. The premium represents the additional cost added by dealers to cover expenses associated with refining, minting, distribution, and profit margins. The premium can vary depending on various factors such as the product type, mint, purity, and market conditions. Generally, coins and bars with higher purity levels may have higher premiums.

Bullion vs. Semi-Numismatics

The primarily valuation of bullion products is in their precious metal content. Making this a straightforward way to ascertain the gold price and acquire value in gold and silver. Government produce large quantities by mints and private refiners. Bullion coins and bars usually have simple designs. It is their bullion investment attributes that make them attractive.

Semi-numismatic items (Proofs), on the other hand, carry additional value beyond their metal content. These coins and bars may have numismatic appeal due to factors such as rarity, historical significance, limited mintages, or unique designs. Collectors and investors may be willing to pay higher premiums for semi-numismatic products due to their desirability among numismatists.

Numismatics (collectable coins or bills) are not IRA eligible. Their value derives from their unique characteristics apart from their bullion value, which is incidental.

Nuances in Valuation Effect on Gold Price

The gold price and generally the value of gold and silver products can vary based on specific nuances:

  • Sovereign Coins & Rounds: Sovereign coins, minted and backed by governments, are typically considered more trustworthy and transparent. They often display essential information such as metal content, purity, and denomination. Private mint rounds may lack such detailed information, leading to potentially lower premiums.
  • Popular & Recognizable Series: Certain products gain popularity due to their reputation or association with famous figures, historical events, or pop culture themes. Coins featuring iconic characters or themes from popular movies, TV shows, or franchises may have higher premiums due to their broad appeal among collectors and fans.
  • Modern & Vintage Products: Modern coins and bullion appeal to investors and collectors due to new releases and series catering to various interests. Vintage coins, no longer in production, can have a high value due to their rarity and historical significance, especially if they are in excellent condition.

Impact of Grading

Professional grading by reputable grading services, such as PCGS, or NGC, can significantly impact the value of a coin. Grading provides an objective assessment of a coin’s condition, and coins with higher grades (such as Mint State 70 or Proof 70) can command premium prices due to their pristine condition and rarity. Coin grades on the Sheldon Scale range from Mint State (MS) 60 to MS 70 for Brilliant Uncirculated (BU) coins, and About Uncirculated (AU) 50 to AU 58 for coins that have seen slight circulation.

If you would like to learn more about the specifics of grading, you can check out American Numismatic Association, as they are the foremost authority on the subject. They do not offer grading services, they are strictly academic on this field.

Gold Price Subjectivity

The gold price and resulting value of gold and silver products can be subjective and influenced by individual preferences and interests. Collectors may place higher value on items that align with their personal passions, such as coins featuring themes from favorite movies, historical events, or iconic figures.

computer 3D person resting on a green check mark knowing value determination process is in secure

Key Takeaways

Understanding the factors that contribute to gold price and the market value of gold and silver products allows portfolio diversifiers and collectors to make informed decisions. Staying informed about market trends, historical significance, desirability, and grading can help individuals build well-balanced portfolios and enjoy the fulfillment of collecting precious metal items. The unique attributes and nuances of each product contribute to its value in the precious metals market.

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Simplified Short Version of Terms and Conditions of Website

This is only a simplified version of the full terms and conditions, it is intended as a quick overview regarding the things as people are most commonly relevant to us.

This website is governed by the full terms and conditions.

Purchase and sales agreements are separate, and provided in different links found on the footer. 

Consent to Contact

Submitting your contact information on any of our contact forms and or calling or emailing Safe Haven Metal is a grant of consent for us to contact you via telephone or email. This consent is a waiver if you are on the do not call list registry and any email shall not be considered spam or unsolicited. Safe Haven Metal will contact you to discuss your needs and no other use of your contact information will be engaged in by us. We do not sell your phone number or email information to anyone.

Please review our Privacy Policy and Cookie Policy for opt out procedures and additional information. The bottom line is that we do not like it when companies sell our information so we will not do it to others.

AML POLICY

Due to Anti-Money Laundering (AML) Policy restrictions and guidelines, we do not accept physical paper money (cash) for purchases. If you do not know what the AML is, you really need to look it up, as it applies to everyone.

As a financial institution, Safe Haven Metal is AML compliant.

PAYMENT OPTIONS

For products that will be delivered to you directly these traditional forms of payment are accepted: bank wire (we prefer this one), cashier’s check, ACH; also IRA is acceptable but that has tax consequences for you.

For products that will be stored by a third party (depository), IRA, 401k, Pensions, Retirement Account, etc. (see full list on Gold IRA page) are all acceptable forms of payment.

We do not accept credit card payments, cash over $10,000 and we do not accept cryptocurrency, we are happy with our real gold.

BUY BACK POLICY (from the purchase agreements)

Safe Haven Metal (SHM) is prohibited under the law from guaranteeing to repurchase Precious Metals that SHM sells, and SHM does not guarantee that it will repurchase any Precious Metal item that Client may purchase; what SHM extends is the possible availability as a buyer at a later date. If and when Customer desires to liquidate, simply call SHM and let SHM know you are ready for SHM to exchange for cash the Precious Metals purchased from us subject to the following procedure that must occur:

i.)         Customer ships the Precious Metals products originally purchased from SHM for inspection because the buy back offer is only for the exact items purchased from us, inclusive of exact condition; and 

ii.)        The cash value of buy back will be at or near Spot Price at the time when we have examined the product to ensure it passes inspection (which is at our or our designated inspector’s sole good faith discretion as to current condition compared to documented condition when originally purchased); 

iii.)      A new agreement is then presented by SHM to Customer reflecting Spot Price and conditions quantities much like this Invoice; the offer is valid for 24 hours after inspection approval and new agreement sent; 

iv.)      Once signed and returned to SHM the money is then released to you within 72 hours; if Customer rejects the offer then Customer must pay for return shipping costs and the product will be returned to Customer. 

v.)          There is no fee on buy back, as that fee is part of the initial purchase Agreement with us as a part of our consideration to be available for your needs at a later date, consistent with this whole paragraph.

Risk Disclosures

Investing in everything is a risk; values fluctuate, sometimes going up, other times down; no one can predict the future; that is why diversified portfolios are usually recommended. The best anyone can do is make informed decisions and see if correct over time, therefore do research, do your homework. Do not invest more in precious metals than you feel comfortable with after informing yourself. Read your contract; ask your attorney to review it. We strive to do right and help others, if you do not understand something then ask us. There are no guarantees, other than doing our best for you.

DISCLAIMER

Our communication of portfolio is intended as Oxford Dictionary defines “portfolio” as: “a range of products or services offered by an organization, especially when considered as a business asset” and Oxford defines “analysis” as “detailed examination of the elements or structure of something”.

All information provided on this website is the opinion and property of Safe Haven Metal LLC. All customers and potential customers are encouraged to do independent research, educate yourself and make informed decisions. Then you can make the best decision for yourself. Once you have done your diligence you will see that Safe Haven Metal LLC truly does have our clients’ best interests in heart. We would not encourage you to go look around elsewhere if we were not confident in what we offer and provide.

NOTICE: Any images of persons on our site are from professional models obtained through licensing of various companies.

Full Terms and Conditions

The full terms and conditions control over this simplified version. This is intended as a quick reference point only. You can access and read more on the full terms and conditions page.