Investing in gold coins can be a lucrative endeavor, but which are the best to buy? The answer may surprise you!
From American Eagles to South African Krugerrands, there is no shortage of options when it comes to investing your hard-earned money.
Like a golden thread weaving through time and history, these gold coins have stood the test of time as some of the most sought after investments.
This article will unravel that golden thread and explore what makes each coin truly shine like a star.
So buckle up and get ready for an eye-opening ride through the world of gold investment coins – we guarantee you’ll strike gold!
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Explained: Prices of Gold Coins
Many people are drawn to the potential of financial stability that comes with investing in precious metals, but understanding how much each coin is worth can be confusing.
In this section, we will explain the prices of gold coins and their various denominations.
The value of gold coins is determined by its gold content or spot price combined with additional factors such as collector’s premium and condition.
Spot price refers to the current market rate per ounce for pure gold, which fluctuates depending on macroeconomic conditions. Depending on the type of coin you buy, fractional sizes may also affect its cost.
For example, if you purchase a smaller size than one troy ounce then it would have less overall gold weight, meaning it would be cheaper than buying a full ounce-sized coin at spot price.
Gold coins come in all shapes and sizes - from fractions of an ounce up to massive 400 oz bars! Whether you're looking for a pocket-sized piece or something more substantial, there's no shortage of options when it comes to purchasing physical gold investments.
Understanding these different products is key to determining what kind of investment works best for your individual situation and budget.
Understanding Gold Coins
It is essential for investors to understand what types of gold coins exist and their differences before making any decisions about buying or selling them.
Gold coins come in two forms: legal tender and numismatic coins. Legal tender coins are issued by governments and can be bought and sold like regular currency.
Numismatic coins are collector's items that value rarity above all else; these rarely fluctuate in price due to changes in gold market costs.
When considering which type of coin is most suitable for an investment strategy, it is important to take into account both liquidity and long-term growth when looking at gold coins.
Bullion VS Collector Coins
The concept of gold coins may seem straightforward, but understanding the nuances between bullion and collector coins can be a bit tricky.
On one end of the spectrum are gold bullion coins which serve as an investment vehicle more so than anything else.
On the other hand, there are collector coins that often have numismatic value in addition to their intrinsic worth due to factors like rarity or condition.
Both types of gold coins provide different benefits for those looking to add them into their gold holdings portfolio.
Gold bullion is typically available in either 1 oz or fractional sizes with purity levels ranging from .999 all the way up to .9999 fine gold content.
The most popular coin issued by any government mint is undoubtedly the Gold American Eagle Coin from the United States Mint. These legal tender coins carry a nominal face value (e.g., $50) and are backed by the US Government for its weight and purity guarantee.
Additionally, many investors choose these coins because they are eligible for inclusion in retirement accounts such as IRAs.
For those interested in purchasing rarer pieces, collector coins offer much higher premiums over spot price but come with additional risks given their finite nature and potential unclear provenance which could lead to trouble when it comes time to sell them down the road.
With this being said, collectors should always do thorough research before investing in such goods as pricing can vary greatly depending on market demand at any given moment along with other variables like condition or mintage year, making it essential that buyers go into purchases well-informed and ready to make wise decisions about what will best suit their individual needs when it comes to adding precious metals into their portfolios.
Moving forward then, let us take a look at how sizing plays an important role when discussing both bullion and collector type gold coin investments.
The Sizing of Coins
Size matters when it comes to gold coins; the bigger the coin size, the more ounces of gold and greater potential return on investment.
An ounce is a common denomination for gold coins, but that doesn't mean all sizes available can be referred to as an ounce coin.
To get started investing in gold coins, understanding the different sizing options is essential.
The Royal Mint offers several denominations of gold coins from 1/100th troy oz (1 gram) up to 5 troy ozs (155 grams).
The most popular choice among investors and collectors alike is the one-ounce coin; this will give you 31.1g of pure 24 carat gold bullion at its current market value price per Troy Oz.
Investors may opt for larger sized such as two or five ounces if their budget allows them too - however these tend to carry a higher premium than smaller ones due to their rarity.
With many options available when it comes to sizing, buyers should consider both their budget and preference before making any final decisions about which type of gold coin best suits them.
Most Popular Coins
When it comes to gold coins, many people think of the most popular ones. These include Gold American Eagles, Gold Buffalos and other types of bullion coins.
While buying any kind of gold investment coin can be a great way to diversify your portfolio, some coins are more sought after than others due to their higher purity or familiarity among investors.
Gold American Eagles have been around since 1986 and are one of the most popular investments in this field. They feature Lady Liberty on one side and an eagle on the other - both by US Mint sculptor Augustus Saint-Gaudens.
The obverse features a strong design with 13 stars representing each original colony while the reverse depicts a powerful eagle in flight clutching an olive branch and arrows – symbols of peace and strength respectively.
Because they’re made from 22-karat gold alloyed with copper and silver, Gold American Eagles carry legal tender status in the United States at $50 per ounce face value.
This makes them highly desirable for collectors as well as investors looking for tangible assets that appreciate over time.
Meanwhile, Gold Buffalo coins were first released in 2006 as another option for those interested in investing in gold coins.
Featuring James Earle Fraser's iconic Indian Head nickel design on its front side paired with Black Diamond, an American bison also designed by Fraser, on the rear - these 24 karat .999 pure gold coins offer something different from traditional government issued currency yet still remain viable options when considering long term investments.
1. Gold American Eagle
The first gold investment coin to look at is the Gold American Eagle. This US Mint-issued coin has been around since 1986 and carries with it a long history of value, quality, and trustworthiness.
The obverse side of this 22 karat gold coin features Lady Liberty walking confidently towards the sunrise while holding an olive branch in her right hand and a torch in her left, symbolizing the struggle for peace.
The reverse side shows an eagle carrying an olive branch above a nest containing a female eagle and hatchlings.
This iconic beauty comes in four sizes: 1/10 ounce, 1/4 ounce, 1/2 ounce, and one full ounce. All versions are composed of 91.67% pure gold along with small amounts of copper and silver alloyed to make them more durable against scratching or marring over time.
Investing in Gold American Eagles offers investors the added security that their coins come from the United States mint – one of the highest rated bullion producers worldwide.
With attractive design elements and excellent provenance, these coins offer great potential for adding significant value to any portfolio.
2. American Gold Buffalo
The American Gold Buffalo is a symbol of prestige and prosperity. This gold coin, minted by the US Mint since 2006, provides investors with an opportunity to add physical gold to their portfolio in a secure and reliable way.
The coins are 24-karat gold and made from .9999 fine gold bullion. They are one of only two modern United States coins produced for investment purposes; the other being the popular Gold American Eagle.
American Gold Buffalos feature designs inspired by James Earle Fraser's classic buffalo nickel design from 1913.
These coins contain 1 troy ounce of pure gold each and come sealed in protective plastic casing or original government tubes (containing 20 coins).
With these coins you can buy physical gold at competitive prices, making them ideal for those looking to invest in precious metals through American mints instead of overseas ones. Canadian Gold Maple Leaf is another great option for those who want to diversify their investments into physical gold coins.
3. Canadian Gold Maple Leaf
The Canadian Gold Maple Leaf is one of the most sought-after gold investment coins. The Royal Canadian Mint first produced it in 1979, and since then they have been providing investors with a secure way to invest in gold bullion.
Each coin contains 1 troy ounce of pure 24 karat gold, making them an attractive choice for those looking to diversify their portfolios.
What sets these coins apart from other forms of gold investments is that not only are they backed by the Canadian government, but each individual coin also carries a unique serial number imprinted on its surface.
This makes it easier to verify authenticity and track ownership should you ever need to sell or trade your coins.
Additionally, these coins feature intricate designs which add even more value and make them a great collectible item for those interested in numismatics as well as investing.
The Canadian Gold Maple Leaf has become increasingly popular over the years due to their reliability and affordability, with many investors choosing this type of gold maples over others because of its guaranteed quality and purity provided by the royal canadian mint.
They come in denominations ranging from one tenth of an ounce up to one hundred ounces; so whatever size you’re after there’s sure to be something suitable available.
4. British Gold Britannia
The British Gold Britannia is a popular gold investment coin and it has been around since 1987. It stands out from other coins through its high gold fineness of .9999, making it one of the purest coins available on the market today.
Not only does this make them valuable but also recognizable due to their intricate design and approval by the British Government:
• 24-karat gold content - The highest quality of gold for any coin
• Long history in Great Britain – Produced by the Royal Mint since 1987
• Unique Design - Features an image of Queen Elizabeth II with a trident behind her
• Highly Regulated – Approved by the British government as legal tender
This makes these coins unique as they are backed up not just by their precious metal content but also by being part of official currency.
This creates trust among buyers that these coins will keep or increase their value over time.
All these factors have made the British Gold Britannia very desirable amongst investors who want to diversify into physical assets like gold.
Transitioning easily into different markets, these coins offer stability and convenience when investing in gold.
5. South African Gold Krugerrand
The South African gold Krugerrand is like a shining beacon of opportunity for investors in the precious metal. It was first introduced in 1967 and since then has become one of the most popular gold coins among those looking to invest their money safely.
The Krugerrand is produced by the South African Mint and contains 1 troy ounce (31.1g) of pure 24-carat gold, making it an ideal choice for any investor who wants to secure long-term value.
What makes this coin unique from other gold investments is that its design features Paul Kruger, the former president of the Republic of South Africa, on one side and a Springbok antelope on the other.
This combination of artistry with valuable gold makes it attractive not only as an investment but also as a collectible item.
TIP: When investing in gold coins such as Krugerrands, make sure you do your research before committing to purchase them so that you can be confident you are getting genuine products at fair prices.
The Difference Between Gold Bars and Gold Coins
Gold bars and gold coins are a popular investment choice for those looking to increase their assets. Whether you’re an experienced investor or just beginning, the decision between gold bars and gold coins can be daunting.
To make sure you choose wisely, it's important to understand the difference between them both.
When it comes to investing in gold, one of the main choices is whether to buy bars or coins. Gold bars come in various weights and sizes ranging from 1 gram up to 400 ounces while gold coins are typically available as 1/10th ounce bullion pieces with some issued at even smaller denominations like 1/20th of an ounce.
In terms of purity, most investors look for .9999 pure gold when making their selection which both types meet this requirement. However, there may be different implications depending on what type of investor you are.
For example, if you're trading in large amounts then buying physical metal could incur storage costs whereas opting for digital entry might be more cost-effective depending on your goals.
Additionally, certain taxes may apply based on where the asset is stored so it's worth doing research into that before committing any money.
The two major differences between gold bars and coins lie within their design and collectability factor. Bars tend to be plainer than coins which makes them ideal for storing wealth but not so attractive if you want something aesthetically pleasing such as a commemorative item or gift option - these would be better suited towards coin purchases instead.
Coins also have higher premiums due to their rarity value so they often make better investments over time however there will always be fluctuations in market prices regardless of what type of product you buy into.
As a result, careful consideration should go into deciding which asset class is best suited for your needs before investing in either form of precious metal.
Gold Coins vs. Gold Bars: When to Choose Either
When it comes to investing in gold, there are two main choices: gold coins and gold bars. Gold coins versus gold bars can be a difficult decision if you don't know the difference.
So what is the better option? It all depends on your individual needs as an investor.
Gold coins offer several advantages that make them more attractive for many investors.
Firstly, they provide greater flexibility in terms of size and denomination.
As opposed to gold bars which come only in one large bar form, investment coins come in various sizes ranging from one ounce up to 400 ounces or even larger denominations.
This makes them ideal for small-time investors who want to start off with a low amount of money but still gain exposure to the market without taking too much risk.
Secondly, compared to gold bars, gold coins tend to carry higher premiums due to their collectible value associated with minting organizations such as the U.S Mint or Royal Canadian Mint.
Lastly, when it comes time to sell your investment coins, they have far more potential buyers than just local bullion dealers because collectors will always be willing to pay top dollar for rarer pieces.
In conclusion, it's important for investors looking into either gold coins or gold bars to consider their own personal needs before making any decisions about which type of investment might be best suited for them.
Whether choosing between different types of coin denominations or going with a single large bar purchase; understanding how these investments differ can help ensure you get the most out of your precious metal portfolio over time.
First-Time Investors & Small Investors
For first-time and small investors, the glimmer of gold coins can be an enticing lure. It is a tangible asset that holds its value over time and allows for diversification in any investor’s portfolio.
Gold coins provide a great opportunity to invest in something real and secure, especially when it comes to beginner investors who may not have much money to start with.
When investing in gold coins, there are three main considerations: cost, availability, and type. Cost is important because affordable gold coins are more accessible to those just starting out their investment journey.
Availability also plays an integral role; if the coin isn't sold at one's local bank or shop, they will need to purchase it online - but such purchases often require additional fees that might make them less than desirable for some beginning investors.
Lastly, type refers to how common or rare the specific coin is - this determines both price and potential returns on investment.
The following bullet points illustrate these key elements further:
• Cost: Look for gold coins that offer good value without breaking your budget; try buying lower mintages from reputable dealers like U.S Mint and Kitco Metals Inc., as well as other options like bullion eagles or fractional rounds.
• Availability: Check whether your chosen gold coins are available locally before you commit to making a purchase online - this way you avoid paying extra shipping charges. Also remember that larger banks usually carry a wider selection of products than smaller ones so don't forget about them either!
• Type: When researching different types of gold coins, consider factors like mintage year (how old the coin is), purity level (the amount of pure gold contained within each piece), design features (whether it has been modified since creation) and rarity rating (how hard it is to find). All these aspects help determine the overall value of the coin which affects its return on investment potential in the long run.
In short, investing in gold coins provides beginners with an accessible entry point into precious metals investments while allowing them to diversify their portfolios without having too much capital up front.
With careful research into what kind of product fits best with individual needs and budgets, novice investors can easily get started on their path towards financial freedom through wise investments in quality gold coins.
Large Investors
According to a survey, about 20 percent of investors are large-scale investors. For this group, gold investing can be particularly attractive due to the potential for long-term returns and diversification benefits.
Gold Exchange Traded Funds (ETFs) provide an easy way for large investors to invest in gold without having to purchase physical bullion or coins.
Additionally, Precious Metal IRAs allow large investors to save up tax-deferred retirement funds with gold investments as part of their portfolio.
It is important for large investors to understand what options they have when it comes to gold investing before making any decisions.
Besides ETFs and IRAs, there are other ways that large investors can get involved in precious metal markets such as buying gold coins directly from dealers or using futures contracts.
Ultimately though, each investor needs to assess which option works best given their personal circumstances and financial goals.
Is It Advisable to Invest in Gold Coins?
Investing in gold coins has become a popular way of building wealth. It's like the age-old saying, 'It's not what you make but how you save.' Gold coins are often seen as a safe bet when it comes to investment strategy.
But is it really worth investing in these shiny little tokens?
Weighing up whether investing in gold coins makes good financial sense can be tricky business.
The truth is, there isn't one definitive answer when it comes to this particular investment question.
Some people swear by gold coins as an excellent and reliable form of safeguarding their assets, while others will tell you it's more trouble than its worth with high premiums attached to certain popular coins.
The decision on whether or not to invest in gold coins should ultimately depend on your individual financial circumstances, risk appetite and goals.
Do your research thoroughly before committing so that you understand all the ins and outs associated with buying gold coins for investment purposes.
Assess if any potential returns outweigh the risks involved, such as storage costs and security concerns.
Ultimately, know yourself well enough that whatever move you make will bring value to your savings portfolio.
Conclusion
Gold coins are an attractive and profitable investment option for many investors. Gold coins offer a reliable store of value that is not subject to the same volatility as stocks or other investments, making it perfect for those who want stability in their portfolio.
Furthermore, gold coins come in various sizes, from small fractional pieces to larger ones that can hold significant amounts of wealth.
They also have varying levels of rarity which makes them appealing to collector’s looking for something special.
While there is always some risk associated with any type of investing, gold coins have proven themselves time and again as one of the most dependable assets around. Investing in gold coinage can provide investors with peace-of-mind knowing that their hard-earned money will be safe regardless of what happens on Wall Street or beyond.
In short, when considering where to invest your funds, look no further than gold coins; they may just prove to be the golden ticket you were searching for!
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