10 Questions
Which of the following is the most cost-effective method of investing in Precious Metals?
Bars and rounds
What is the spot price of a Precious Metal?
The value of a Precious Metal at any given time
What is a premium in the context of buying Precious Metals?
The additional price paid over the spot price to help cover manufacturing and distribution costs
What is the advantage of investing in sovereign coins?
They have a similar value anywhere in the civilized world
Which sovereign coins are backed by the full faith and credit of the U.S. Government?
American Eagles
What is the advantage of investing in vintage numismatics?
They are dependent on condition and rarity
What is the disadvantage of investing in modern numismatics?
They are not backed by the full faith and credit of the underlying sovereign governments around the world
What is the total cost incurred by an investor when buying Precious Metals?
The sum of the spot price and the premium
What is the advantage of investing in sovereign bullion coins?
They are manufactured, backed by the full faith and credit of the underlying sovereign governments around the world, and they are quite transferable.
Which of the following sovereign coins has a strong market for their purchase and collection?
All of the above
Study Notes
Major Considerations for Buying Precious Metals
- Sovereign bullion coins are the most popular Precious Metals for investment purposes.
- Bars and rounds are the most cost-effective method of investing in Precious Metals.
- Modern numismatics are highly collectible and can increase in value.
- Vintage numismatics are dependent on condition and rarity.
- When buying Precious Metals, an investor incurs a total cost that includes the spot, a premium, and any applicable taxes and other fees.
- The spot price is the value of a Precious Metal at any given time, and a premium is the additional price paid over the spot price to help cover manufacturing and distribution costs.
- Sovereign coins are manufactured, backed by the full faith and credit of the underlying sovereign governments around the world, and they are quite transferable.
- Sovereign coins have intrinsic value due to their metal content and collectability.
- Sovereign coins each usually have declared set mintages (supply), along with a strong market for their purchase and collection (demand).
- Precious Metals have a similar value anywhere in the civilized world, making them truly universal currencies.
- American Eagles are one of the few types of sovereign coins allowed by law to be used in individual retirement accounts (IRAs), due to their backing by the U.S. Government.
- Other popular products for first-time sovereign coin buyers include Canadian Maple Leafs, South African Krugerrand, and Austrian Philharmonics.
Are you considering investing in precious metals? This quiz will test your knowledge on the major considerations when buying precious metals. Learn about the different types of coins, bars, and rounds, as well as the spot price, premiums, and total cost of investing. Understand the value of sovereign coins, both for their metal content and collectibility, and discover which coins are allowed in individual retirement accounts (IRAs). Test your knowledge on the most popular products for first-time buyers and become a savvy investor in precious
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
