- 06 Feb 2023
- Bonds
- Precious Metals
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If you're reading this article, chances are you're looking for reliable advice on which gold coins to invest in. You've come to the right place! As a friendly expert, I'll provide you with all the information you need if you're interested in purchasing gold coins as an investment.
Gold coins have their place in history as the most secure financial instrument. This is because they can't be forged and are more challenging to counterfeit than other forms of paper money. It's not just a clever idea to invest in gold coins; it's smart on every level from an environmental point of view as well.
Gold coins are a great way to diversify your portfolio and hedge against inflation. They're also a great way to generate long-term wealth. But before you jump into the world of gold coin investing, you need to know which coins are the best.
In this article, I'll be discussing the different types of gold coins that are available, as well as their advantages and disadvantages. I'll also tell you which coins are the best for investing purposes. So, let's get started!
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Gold Coins Investing: A Quick Overview
Gold has been an attractive investment for centuries, with its value and appeal being recognized since ancient times. Its illustrious history and long-term stability have made it a favorite among investors and collectors. Gold has been a currency, a valuable commodity, and a reliable store of wealth since the beginning of recorded history.
The first recorded use of gold in monetary transactions dates back to the 5th century BC with the Lydian Empire, which introduced the world's first stamped coins. Gold has been used as a currency in various countries throughout the centuries.
In the United States, gold was used as legal tender until 1933 when President Franklin Roosevelt issued Executive Order 6102, which mandated that all citizens turn in their gold holdings to the U.S. Treasury in exchange for paper currency.
Gold has also been used for a variety of other purposes. It has been used for ornamental purposes, such as jewelry and artwork, decorative purposes, gilding, and industrial applications, such as electronics, dentistry, and aerospace. It has even been used in medicine, having been found to possess anti-inflammatory, anti-bacterial, and anti-cancer properties.
Today, gold is still seen as a reliable store of wealth and continues to be favored by investors. It has proven to be a safe and secure investment, having weathered economic downturns and inflation with much more stability than other asset classes.
With its wide range of uses and its long, impressive history, gold will remain a popular choice for investors and collectors.
Gold Coins vs. Rounds
Gold coins come in various sizes and designs. They are typically produced by government mints and have legal tender status, meaning they are recognized as a form of currency. Gold coins usually contain a set amount of gold and are marked with their weight and purity. They also often feature a face value or denomination.
Gold rounds, on the other hand, are produced by private mints. They are made from pure gold but don't have legal tender status. While gold rounds may feature a design, such as a company logo, they don't usually feature a face value. These rounds are usually bought and sold based on their gold content and market value rather than their face value.
In terms of investing, gold coins and rounds both offer advantages. Gold coins are easier to buy and sell due to their legal tender status. Gold rounds, however, may offer more flexibility in terms of design and can be easier to store in bullion form.
Best Gold Coins to Invest In
In terms of look, the coins are identical. Since they are not meant to be used as legal tender, they will look different from standard coins. In addition to its collectible value, a round's precious metal content gives it legal tender worth even if it is not recognized as a currency. Most people will take coins as payment. Coins and rounds aren't the only ways to purchase gold; there are many more.
We have compiled a list of the top gold coins to invest in based on the rankings of respected worldwide authorities.
❑ Gold American Eagle
The Gold American Eagle is an excellent choice for gold coin investors. It's a popular option because its wide availability and iconic design make it a collector favorite. The coins are made from 22-karat gold.
Each coin contains one troy ounce of gold and is backed by the United States government, so you can be sure of the purity and weight of the coins. The design on the front of the coin is a rendition of Lady Liberty, while the reverse shows a nesting eagle.
The Gold American Eagle is an excellent choice for investors purchasing gold coins. It's widely available, has a high purity and weight, and is backed by the United States government, making it a secure investment. It also has a beautiful design that makes it a great addition to any collection.
❑ Canadian Maple Leaf
This classic gold coin is renowned as one of the world's purest gold coins and has been trusted by investors worldwide since 1979. The Canadian Maple Leaf is produced by the Royal Canadian Mint and is renowned for its high quality and purity.
The coin's gold content is 99.99% pure, making it one of the purest gold coins available. It has a face value of CAD 50, which makes it a legal tender in Canada. The coin is available in various sizes, including 1 oz, ½ oz, ¼ oz, 1/10 oz, and 1/20 oz.
The design of the Canadian Maple Leaf is iconic, featuring a portrait of Queen Elizabeth II on the obverse side and a maple leaf on the reverse. A unique feature of the coin is its security features, which make it difficult to counterfeit. Each coin has radial lines on the reverse side and a micro-engraved maple leaf with a numerical code.
The Canadian Maple Leaf is an excellent option for investors because it's highly liquid and can be easily bought and sold. Additionally, its gold content is guaranteed by the government of Canada, so you know you're getting the real deal.
On top of that, because it's a well-known coin, it's easy to find buyers if you ever decide to sell. Furthermore, the Canadian Maple Leaf is accepted by dealers worldwide, so you don't need to worry about where to find someone to take it.
❑ South African Krugerrand
The South African Krugerrand is an excellent gold coin to consider investing in. It is one of the oldest and most popular coins available on the market, having been first issued in 1967. It is also the world's first modern gold bullion coin and its name is derived from Paul Kruger, the former South African president.
The Krugerrand is particularly attractive to investors because it is made from a 91.67% gold alloy, making it an ideal option for those looking to add gold to their portfolio. It is also one of the more affordable coins, typically costing less than coins made from pure gold.
The Krugerrand is also highly durable, so it is less likely to suffer damage due to wear and tear. It is also easy to store and transport, as each coin comes in plastic capsules that protect it from the elements.
The Krugerrand is also recognized worldwide, making it an ideal option for international investors. This coin is also highly liquid, which can be easily converted into cash if needed.
❑ Austrian Gold Philharmonic
Austrian Gold Philharmonic features the world-famous Vienna Philharmonic Orchestra on its reverse side and the Great Organ of the Golden Hall in Vienna's Musikverein on the obverse. These coins are minted from .9999 fine gold, making them one of the purest gold coins available, and they come in various sizes, from 1/25th of an ounce up to 1 ounce.
The Austrian Gold Philharmonic coins are also incredibly reliable and popular with investors. They are backed by the Austrian government and have been produced since 1989, making them a time-tested gold investment. Furthermore, the coins are eligible for Precious Metals IRAs, which allow investors to store their gold in a tax-advantaged retirement account.
❑ Gold American Buffalo
This coin was first issued in 2006 and has become a popular option amongst investors due to its high gold content and beautiful design.
The Gold American Buffalo contains one troy ounce of .9999 fine 24-karat gold, making it one of the purest coins available on the market. The front of the coin features a profile of a Native American, while the reverse side depicts a majestic buffalo.
It's no wonder that this coin is so sought after - not only is it made from pure gold and it has a beautiful design that makes it stand out from other coins.
The Gold American Buffalo is produced by the United States Mint and is backed by the United States government for its weight, purity, and authenticity. It's also IRA-eligible, meaning it can be used as an investment in a retirement account.
This coin is highly liquid and easy to sell, which makes it a great choice if you're looking to diversify your portfolio.
❑ South African Krugerrand
The South African Krugerrand was first issued in 1967 and has become a staple in bullion coins. It's an excellent choice for investors as it contains one full ounce of pure gold, meaning its value will never depreciate due to its contents.
The Krugerrand also has unique features that make it stand out from other coins. It is the most widely held and traded bullion coin globally, making it easily accessible for investors. The coin is produced using a 22-karat gold alloy, which is much more durable than pure 24-karat gold. This means the Krugerrand can be handled without fear of damage or devaluation.
The Krugerrand is an excellent choice of gold coin for investors because it's relatively affordable. Its lower price point makes it an attractive option for those who want to get into gold investing but don't have a large budget to work with.
It's also easier to store and transport than larger bars of gold, making it a great choice for those who want to move their investments quickly.
❑ Gold Australian Kangaroo
These stunning coins have been issued since 1986 and are struck from .9999 fine 24-karat gold. Not only are they beautiful to behold, but they are also an excellent investment option.
The Australian Kangaroo is one of the flagship gold coins produced by the Perth Mint in Australia. The coin features a new design depicting a red kangaroo on the reverse side each year, making them highly collectible. Its obverse side features the effigy of Queen Elizabeth II along with the coin's year of issue, denomination and weight.
The Gold Australian Kangaroo has a face value of A$100 and is a legal tender in Australia. It is also eligible for use in Precious Metals IRAs, which makes them an even more attractive investment option.
These coins come in various sizes, ranging from 1/20th of an ounce to 1 kilogram. They are also available in proof, uncirculated, high-relief versions and special sets – perfect for investors and collectors.
Gold Australian Kangaroos are also highly sought after due to their excellent liquidity and portability. They are easy to store and transport, making them accessible to buyers worldwide.
❑ Chinese Panda
These coins are highly sought after and have become valuable assets for investors. They are minted with 99.9% pure gold, making them one of the purest coins available on the market.
They also feature yearly changing designs for each series, giving them an extra level of collectibility. These coins are issued by the People's Bank of China, ensuring that you invest in a legitimate asset.
The Chinese Panda gold coins come in various sizes ranging from 1/20 oz. to 1 kg, offering you a range of options for choosing the right size for your investment needs. You can also select between proof and bullion coins depending on your preference.
In terms of pricing, Chinese Pandas are considered to be some of the most competitively priced coins on the market. They also have high liquidity, which can be easily converted into cash should you ever need to.
❑ British Britannia 1-Ounce Gold Coin
This coin has been around since 1987 and is a great way to add value to your portfolio. It is made of 99.99% pure gold, which ensures its quality and makes it an excellent choice for long-term investments.
It also has a beautiful design that features the image of Britannia, the female personification of Great Britain. The reverse side of the coin displays a different image each year, making it an attractive coin to collect.
The British Britannia 1-ounce Gold Coin is an excellent investment because of its value and quality. It has a face value of £100, which is higher than many other gold coins, and its purity of 99.99% makes it a good choice for long-term investments. The government of Great Britain also backs it, so you can be sure that the value of your investment will remain stable.
Another great feature of this coin is its portability. Its small size makes it easy to transport and store, allowing you to invest wherever you go. Additionally, the coin is considered legal tender in Great Britain, giving it added value.
Benefits Of Investing in Gold Coins
Gold coins can be a great way to diversify and add tangible value to your portfolio. Gold coins are a safe and reliable asset, as their value increases steadily over time. Here are some of the benefits of investing in gold coins:
Protection Against Inflation
Gold coins can act as a hedge against inflation because they tend to increase in price when the value of paper money falls. This makes them an ideal hedge against economic downturns.
Hedge Against Currency Risk
Gold coins can also be used as a hedge against currency risk because they are not tied to any particular currency. This means that if the value of one currency falls, you will still have the value of the gold coins to protect your investment.
Portfolio Diversification
Investing in gold coins can help to diversify your portfolio and provide protection against market volatility. Since gold tends to maintain its value over long periods, it can be a great way to offset losses from other investments.
Liquidity
Gold coins are highly liquid, meaning you can easily convert them into cash or other investments. This makes them an ideal asset for investors who want quick access to their funds.
Hedging Against Political Risk
Gold coins can also protect against political risk, as their value is not affected by political instability or other local factors. This makes them a great way to protect your investments from unexpected political events.
Can You Invest in Gold Coins with An IRA?
Investing in gold coins with a gold IRA is a great way to diversify your retirement portfolio. A gold IRA is an Individual Retirement Account (IRA) that allows you to invest in physical gold instead of traditional stocks and bonds. Gold investments can help protect against market volatility and inflation, and gold coins are an easy way to diversify your portfolio.
The first step to investing in gold coins with a gold IRA is to find a reputable precious metals broker. You want someone who has experience in the industry and good customer service. Once you've found a broker, you can start setting up your gold IRA.
The next step is to open a self-directed IRA. This is where you can legally purchase and store gold coins. Your broker will provide you with an IRS-approved depository, a secure storage facility for your gold. Once you have opened your IRA, you can begin purchasing gold coins.
When it comes to buying gold coins, you have a few options. You can purchase gold bullion coins, non-numismatic coins made from gold that government agencies like the U.S. Mint have minted.
You can also buy numismatic coins, which have a collectible value due to their age or rarity. Finally, you can purchase fractional coins, smaller coins that are easier to buy and sell.
Once you've decided on the type of gold coins you want to invest in, you can begin buying them. Your broker will be able to help you with this process and provide you with the necessary paperwork.
Final Thoughts
We've discussed some of the best gold coins for investing, and now it's time to wrap things up. Knowing your goals and how much you are willing to invest is the first step toward making an informed decision.
We encourage you to look into investing in a Gold IRA. It is a great way to diversify your portfolio, protect your savings from inflation, and enjoy tax-free growth potential.
With various companies offering gold IRAs, it can be challenging to determine which is the best. Fortunately, we have researched and identified the best gold investment companies to help investors make informed decisions.
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