Gold Investment Coins – What You Need to Know Before Buying Them

There’s a reason many people invest their hard-earned money in gold: it’s one of the rarest and most valuable materials in the world. Also, for centuries, gold coins have been used as a form of currency!

Unlike bullion, gold coins tend to arouse great interest among collectors, as many are linked to fascinating stories or important figures, gaining more value as an investment option.

In addition, gold and other precious metals can provide a hedge against inflation or recession, as they hold their value when the economy is hit by volatility, negative events, or crashing markets.

When there is a financial crisis, those who invest in the stock market often face losses, but that isn’t the case with gold since this asset cannot disappear. Moreover, this precious metal can be passed down from generation to generation without depreciation, as it maintains its value and can even generate profits in the long run.

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How the Price of Gold Often Performs

Gold Investment Coins

While the yellow metal can be traded in many different forms and products, gold bullion coins are the most popular and expensive, as they are considered more valuable due to their mintage and heritage.

Also, many gold bullion coins have been used as currency in the past. Therefore, most have become collectibles or novelty items that are no longer in circulation but represent an important part of history.

Another aspect that makes gold coins more valuable assets is why they were created. Many marked unique and special events in history. A perfect example of this is the 50-oz Krugerrand.

In addition, gold coins maintain their value, a high resale price, and liquidity over time.

Factors Influencing the Price of Gold

Unlike paper money, gold has limited availability. Therefore, its value depends on demand and supply. Furthermore, this precious metal can withstand market falls and staggering economies, which makes it an excellent investment option when there are financial difficulties.

Currently, gold is also used in different industries. This yellow metal is essential to manufacture some medical devices and electronic products. Also, it’s popular in jewelry and continues to be a favorite choice for many investors.

Another key aspect that makes gold a more expensive asset than others is its popularity. The demand for gold doesn’t appear to be slowing down anytime soon. Furthermore, this precious metal is highly coveted.

Usually, when the economy is suffering, gold coin prices go up, so they’re also safe investments in times of economic uncertainty.

As you can see, there are many reasons why gold prices hold up over time and can even lead to long-term profits. Consequently, this precious metal is one of the best investment options for those who want to save now and for their retirement.

Gold Coins: What You Should Know About Them

As mentioned, the price of precious metals increases frequently and at significant rates. That’s why gold, silver, platinum, and palladium coins are considered by many to be safe investments.

In addition, if you’re thinking of buying gold coins, you can find numerous reliable gold coin dealers with years of experience in the industry. Most can help you buy your assets, and some even provide advice to those who are unsure about their investment decisions.

In other words, while many people believe buying precious metals is difficult, it’s actually easy if you find a reputable dealer.

However, if you want to avoid scams and don’t want to lose money buying overvalued gold bullion coins, you should be well informed. Do you want to know if the assets you plan to buy are legitimate? Find all the information you need here!

Gold Bullion Coins vs. Collectible Coins: What's the Difference?

If you plan to invest in gold for the first time, the first thing you should do is understand the difference between bullion and collectible coins since their value is usually different.

The price of gold bullion, for example, depends on the current value of the precious metal. Meanwhile, rare or collector coins are priced based on current demand and historical supply.

While some US gold and silver coins can be in circulation for a modest premium over their bullion content, some coins in pristine condition are often worth considerably more.

Furthermore, history has shown that the numismatic premium could be way above the coin’s melt value. Consequently, properly graded rare coins are highly sought after.

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The Size of the Coins

Another aspect you should pay attention to if you’re thinking of investing in gold bullion coins is the size.

Gold coins are usually available in various ounce and partial ounce sizes. The most expensive alternatives are ½ ounce, ¼ ounce, and 1/10 ounce. One-ounce coins are usually cheaper.

The reason why smaller denomination coins tend to be more expensive is linked to the additional costs of insurance, packaging, and minting. However, investing in them can be very beneficial for investors.

First, there’s liquidity. Smaller denomination gold coins are often easier to sell and have a higher price or premium compared to one-ounce coins. They’re also easier to trade for other items!

Most Popular Gold Coins

If you already know the essentials when buying gold bullion coins, it’s also important to be informed about the most popular options on the market. These are:

Gold American Eagle

Gold American Eagle

This gold coin, based on the famous Augustus Saint-Gaudens design, is one of the best-known around the world! Many say it faithfully represents the American spirit.

On one side, the Gold American Eagle has an image of Lady Liberty walking in front of the sun. Meanwhile, on the other side, this gold coin features the iconic nesting American bald eagles – a symbol of US culture and history.

Why Pick This Option

One of the advantages of the Gold American Eagle is that it’s available in multiple fractional sizes and can fit any budget. In other words, you don’t need to invest a fortune if you want to buy these gold coins.

Moreover, the Gold American Eagle is one of the most recognized and popular gold coins worldwide. Therefore, you don’t have to worry about its liquidity.

American Gold Buffalo

American Gold Buffalo

Another coveted gold coin with great popularity is the American Gold Buffalo. Its design is an artistic and well-crafted rendering of James Earle Fraser’s famous 1913 Buffalo Nickel.

The obverse of this gold coin displays a marvelous portrait of a Native American chief, which also represents the country’s history very well. Plus, on the reverse, it features a magnificent American buffalo that many recognize as soon as they see it.

Black Diamond, the buffalo, is also a cultural symbol in US history. It was an American bison living in the Central Park Zoo in New York around 1910.

Is It Made of Fine Gold?

If you prefer fine gold bullion, American Gold Buffalo may be for you. It has a fineness of .9999, so it’s an excellent choice for most investors.

Canadian Gold Maple Leaf

Canadian Gold Maple Leaf

Another of the world’s most coveted gold coins is the Canadian Gold Maple Leaf, and there’s a reason behind this fact. It’s produced by the Royal Canadian Mint and has innovative security features that many investors seek to protect their assets.

The Canadian Gold Maple Leaf has an iconic beauty that most collectors love. Its maple leaf design is gorgeous! Also, it’s massively popular and enjoys international recognition!

Why Choose Canadian Gold Maple Leaf

Investors looking for fine gold bullion may want to consider the Canadian Gold Maple Leaf, as this gold coin is made of .9999 fine gold.

If you have a small budget, the Canadian Gold Maple Leaf may be perfect for you, as it’s another of the gold coins available in fractional sizes. It’s a great option if you are starting your gold-investing journey!

British Gold Britannia

British Gold Britannia

British gold coins are now finer, particularly British Gold Britannia coins, as they have increased in fineness steadily. Exemplars issued from 2013 are made of .9999 fine gold, for example.

Why Choose British Gold Britannia

Fineness isn’t the only reason why the British Gold Britannia is an excellent choice for investors. This gold bullion coin is widely recognized around the world.

Furthermore, The Royal Mint commands respect, giving this coin rising value and increasing its liquidity potential. Britannia is also recognized in most countries and has been depicted on coins for centuries. Therefore, this coin will continue to be a prominent and coveted option among gold investors.

South African Gold Krugerrand

South African Gold Krugerrand

If there is a gold bullion coin with great historical value, it’s the South African Gold Krugerrand. That’s why it’s the favorite option for gold investors outside the United States.

It’s the world’s first gold bullion coin! Many investors, especially gold enthusiasts and collectors, love it and buy it in droves! Also, its market price is more affordable compared to other alternatives.

Recognizing the South African Gold Krugerrand is easy. It features a springbok antelope and a unique coloring that old-school investors are all familiar with.

Many believe that the South African Gold Krugerrand could have a better design, as it isn’t as detailed as other gold coins that have gained popularity in recent years. However, it’s another attraction of this coin.

Since its simple design was created in 1967, it has a higher historical value. In addition, it has proven that it can last over time and still be considered a good investment alternative. Currently, the amount of Krugerrand gold coins purchased is greater than all the one-ounce gold coins available on the market!

Is It a Fine Gold Coin?

The South African Gold Krugerrand has a gold fineness of .9167 and an alloy of 8.33% copper used to reinforce the gold’s durability.

Thanks to its low price and historical significance, it’s recommended for new investors. However, experienced buyers can also benefit from this amazing gold bullion coin.

In terms of liquidity, the South African Gold Krugerrand is also an excellent choice, as it’s liquid in open markets around the world.

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Differences Between Gold Coins and Gold Bars

If you want to join the gold-investing world and plan to buy this highly sought-after metal, you have likely heard about gold bars, but what is the difference between them and coins?

Since gold is a chunk of metal, it’s often minted with a cuboid shape. Each piece has its equivalent gold content weight written on the surface. That’s a gold bar.

Gold bars are excellent investment options for buyers hoping to invest in this metal for its inherent value rather than its historical significance or form.

However, since gold coins can also be circulating currency in some countries, they have some premium value.

In addition, gold coins have traditional and historical minting value. Actually, some of the ones you can find in the gold investment market were circulating currency in the past. That’s why many people choose them.

Why Are Gold Coins Better Than Gold Bars?

Determining whether gold coins are better alternatives to gold bars depends on your preferences and investment strategy. If you plan to start a gold collection and want to invest in assets with historical and sentimental value, coins may be perfect for you.

In addition, gold coins have an additional economic value that many investors and collectors are willing to pay for since they are minted in continuous annual series. That means gold coin’s value typically increases over time as buyers want to complete their collection.

British gold coins, including the Britannia and the British sovereign gold coin, are perfect examples. Every year, annual versions of these coveted coins are minted.

While it can be difficult to quantify the value of gold coins compared to the live gold spot price, it often fluctuates if the yellow metal price goes up or down.

However, each coin can have additional value due to its rarity levels. If a coin from a previous year is hard to find, for example, its additional numismatic value will make its price fluctuate over time and difficult to calculate.

Fine Gold? Collectible Coins? What Should First-Time and Small Investors Look For?

First-time gold investors and small buyers can benefit from gold coins on their first purchases, as they represent smaller investments.

Most of today’s coins are made of pure gold. However, a one-ounce coin can cost only $2000, so it can be a perfect starting point for beginner investors and collectors.

Also, some gold bullion coins, such as Krugerrand coins, generally attract lower market premiums. These are ideal for small and first-time investors.

British coins are also good options because they are made of pure gold and offer a more cost-sensitive way to buy this precious metal but are available in smaller units.

What Large and Experienced Investors Do

Many big investors focus on purity, which means they’ll try to find only pure gold coins to buy. Others focus on assets with the best value for money because they want to maximize their return on investment.

When investing larger sums of money to buy gold bullion coins for your investment portfolio, making the right decision can be easier. The Canadian Maple Leaf or a British gold coin may be perfect if you have a high net worth and want to maintain a diversified collection of pure gold coins.

While buying sovereigns requires a slightly higher premium, if you have a high net worth, you can buy these gold coins and enjoy greater earning potential.

However, if you plan to invest in sovereign pure gold coins, it’s important to study the mixed-year market to find lower-priced options. Coins from specific years usually have a higher premium.

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Final Thoughts: Is Investing in Gold Coins a Good Idea?

Buying gold coins and any other form of physical gold is an excellent option for many. However, it’s essential to study the market and devise an investment strategy adapted to your needs in order to make the best decisions.

Also, when investing in gold bullion coins, you should make sure to choose the options that offer the best return. As a basic rule of thumb, you should try to get the most gold value per dollar spent.

However, as mentioned, deciding if investing in gold is a good option and picking the best way to buy precious metals depends on your specific situation.

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