When it comes to finding the best gold coins to buy you need some basic knowledge on the different types of gold coins available. With the price of gold as high as it is, even people who have never put any money into serious investments are buying gold. Inflation is eroding the value of currencies around the world. Smart people are realizing that the only safe place for their wealth is in precious metals and gold is one of the most popular.
When it comes to gold coins you have three basic categories to choose from, the first being Bullion gold coins, the second being Semi-numismatic and the third being Numismatic. The price of bullion coins is tied directly to the current spot price of gold, the price or value of collectible coins is influenced by the current spot price as well as the demand, condition and scarcity of the particular coin.
My preference is investing in bullion coins, mainly because you do not necessarily need to be a numismatic or coin expert to get started but you do need to educate yourself and shop around to get the best price but let’s have a look at all three.
Gold Bullion Coins
I believe the best gold coins for investment are bullion coins, in the U.S. and Canada there are a few that stand out and are most common and popular to investors of all levels namely the Canadian Gold Maple Leaf, the U.S. Buffalo amongst others. When you are purchasing a gold bullion coin you will pay the spot price plus any charges for the manufacturing and/or craftsmanship that has gone into the coin, this will be considerably less than premiums you will pay on rare or collectible coins. The extra charge you will pay will called the ‘premium’ which effectively is the profit for the seller.
Well Known And Widely Purchased Gold Bullion Coins Today:
The Canadian Gold Maple Leaf Coin:
Maple Leaf Gold Coins were first struck in 1979 by the Royal Canadian Mint and were the first coin to reach the purity level of .9999 fine, they are respected world wide for their beauty, craftsmanship and technical excellence, you can’t go wrong investing in Maples.
Maples are available in 1/20, 1/10, 1/4, 1/2 & 1 ounce sizes.
With The Spot Price Of Gold at $1717.80
Price to purchase a 1 ounce Maple at Kitco: USD $1,760.79 USD each
Price to purchase a 1 ounce Maple at Northwest Territorial Mint: $1881.05 USD each
Does it pay to shop around: YES!
1 Ounce U.S. Gold Buffalo
The American Gold Buffalo was the first .9999 fine gold coin issued by the U.S. Mint. The design is based on the sculptor James Fraser featuring a native American on the front and the majestic buffalo on the back, a classic coin that will always be in demand.
Buffalos are available in 1/20, 1/10, 1/4, 1/2 & 1 ounce sizes.
With The Spot Price Of Gold at $1717.80
Price to purchase a 1 ounce Buffalo at Kitco: USD $1,790.75 USD each
Price to purchase a 1 ounce Buffalo at Northwest Territorial Mint: $1,924.85 USD each
1 Ounce Panda Gold Coin
The Gold Panda Coin was originally minted in 1982 and is the official gold bullion coin of China. Commonly referred to as ‘Pandas’ they are know worldwide for their beauty and classic design. The are made up of .999 fine gold and are a favorite for bullion buyers.
Pandas are available in 1/20, 1/10, 1/4, 1/2 and 1 ounce sizes.
With The Spot Price Of Gold at $1717.80 you can purchase a 1 ounce Panda at the Northwest Territorial Mint for $1873.31
1 Ounce Philharmonic Gold Coin
The Philharmonic is one of the most sought after gold bullion coins of modern times. It was the best selling gold coin in 1992, 1995 & 1996. It is the only euro denominated bullion coin available and is compiled of .999 fine gold, it is minted in the world famous Vienna Austrian mint, and is inspired with features of the famous Philharmonic orchestra.
With The Spot Price Of Gold at $1717.80 you can purchase a 1 ounce Philharmonic at the Northwest Territorial Mint for $1894.55, alternatively Kitco is offering the same coin for $ 1,776.20 each USD
1 Ounce Gold Krugerrand
One of the first bullion coins ever issued the Krugerrand was initially produced in 1967, they are one of the most collected gold coins in the world and remain so to this day. Produced in South Africa by the South African Mint they are acknoledged as a bullion coin but are actually .916 or 22k gold. They have a classic designed and the additional alloys mixed with the gold are done so for improved resistance to wear and tear.
They are available in 1/10, 1/4, 1/2 and 1 ounce sizes. With the spot gold price at $1717.80 you could purchase a 1 Ounce Krugerrand for $1,761.65 USD at Kitco or $1,867.05 at Northwest Territorial Mint.
1 Ounce Gold American Eagle
The Gold Eagle is the official gold bullion coin of the United States, it was originally minted in 1986 and is another bullion coin that is actually .916 or 22k gold. The majestic eagle on one side and the walking lady liberty featured proudly on the other. They are issued in 1/10, 1/4, 1/2 and 1 Ounce coins.
With the spot price of gold at $1717.80 you can purchase a 1 ounce eagle at Kitco for $1,789.04 or for $1915.55 at Northwest Territorial Mint.
Semi-Numismatic
Semi Numismatic gold coins are coins that contain gold, they can come in a wide variety of gold content, generally from 18k or .750 to 22k or .916, they come in a wide variety of weights and sizes. Their value comes from the price of gold on the given day plus some additional value due to their collectibility and demand for the coin.
British Sovereign Gold Coins
Many people refer to British Sovereigns as gold bullion coins but they are also thought of as rare and collectable, at least the older years. They were first produced at the height of the British empire starting is 1816. There are two sizes of Sovereigns, the full Sovereign which weighs 7.98 grams and the Half Sovereign which weighs 3.99 grams, they are made up of .917 or 22 karat gold. If you purchasing them for scarceness or collectability you want them to be of high a Grade as possible.
Swiss 20 Franc Gold Coin
Known commonly as the Swiss 20 Franc this classicly designed coin is made up of .900 or 90% gold, they were made starting in 1897 to 1949, they continue to be a highly desirable coin. They weigh in a 6.4 grams and contain .1687 troy ounces of gold.
French Rooster Gold Coins
At one time the most common gold coin in Europe, the French Rooster has become fairly scarce over recent years. Roosters were minted from 1899 through 1914. It is composed of .900 or 90% gold content, weighs in at 6.4 grams and contains .1867 troy ounces of gold
Numismatic Gold Coins:
Numismatic gold coins are coins the derive their value more from their grade, condition, demand and scarcity as opposed to their value as far as precious metals are concerned. These type of coins rely on a grading system to determine their value as much as anything, numismatic gold coins as most valuable when they have a PCGS or NGC grade, these are two of the most respected grading services in the world, the Professional Coin Grading Service and the Numismatic Guaranty Corporation, grading of these coins can be subjective as well. Proof edition gold coins fall into the Numismatic category as well.
You as the investor are the only person who can decide if you this is a suitable investment style for you. Another consideration with these coins is the better their grade the more they will cost and the higher their return will be in the future.
The current value of a rare coin also depends one is willing to pay, before deciding on a coin you should evaluate it’s present market value as well as it’s potential to appreciate in the future. Another consideration should be it’s liquidity, will you be able to sell it quickly in the future for the price you want? Or do you have the ability to wait for the opportune to sell the coin? If so rare gold coins may be for you.
Some of the more well known and sought after coins today are pictured below from left to right:
$5 Indian Head | $20 Liberty | Proof American Buffalo | $20 St. Gauden | Proof Australian Nugget
Popular Numismatic Gold Coins
So Which Type Of Coins Are Right For You?
In the end the best way to buy gold coins is dependent on the type of coins you’re most interested in, for myself I prefer to stick to bullion coins, I don’t pretend to be a coin expert and I don’t have to be, all I really need to be is aware of the price of gold and find the best place to buy gold coins by researching the seller’s premiums. If you live in or near a major city you have option of visiting bullion houses, small refineries and reputable coin dealers to purchase your coins in person, again make some calls and deal with someone who sounds knowledgeable and will treat you fairly. All businesses need to make a profit but it is up to you to find the dealer with the best prices.
If you aren’t near a physical dealer there are many choices online, you can look at Ebay, personally I’ve never purchase coins on Ebay I stick to reputable dealers such as Kitco, I’ve found them good to deal with but there are many others around, do your price research and find out what their delivery charges are, good luck with your buys!
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