Expert: PAPAJACK - 10/4/2008

Question
Hi PAPAJACK,

I have a gold crown that came off of a tooth long, long ago and was just wondering what it might be worth to a dealer or someone in the gold market? Should I just hang on to it in hopes of increasing value?

Also, what type of gold is the safest investment to buy? I heard it was coins or gold & silver boullion, especially before 1933?..1934? or something related to that. Why might gold or silver coins minted before these dates be more valuable?

Thank you greatly.

Mike E.

Answer
Hello Mike,                         

Gold is valued according to the weight and purity of what you have. The value changes each day with the closing metal value on the stack exchange. The Gold Ounce is selling at about $830 today if it is pure.
You would need to have the piece of gold you have and get it assayed.
Only once the purity and weight is certified by assay can it be accepted for trade.
You can try a jeweler for a quick sale but they pay only for the melt value.

Gold in the form of government issued coins are guaranteed by the government. They do not need to be assayed again.
Most modern Gold coins are considered BULLION and sold at the spot price each day plus a premium. This is a safe way to own gold if you don’t have a large holding. Some people use them in retirement accounts as a hedge on inflation. The value of the gold may go down in dollars but the purchasing power is usually the same.

The USA Gold coins made before 1933 hold a collectable value besides a gold metal value. If the coins are in high grade mint condition collectors will pay more than the gold content is worth. So even when gold drops in price these still get about the same money you bought them at if you do not over pay for them.

If you need more help feel free to write me again.

Good Luck

PapaJack