With so many types of gold coins available on the market today, the question may have crossed your mind:
"What's the difference between all these coins?"
For newer collectors and investors, understanding the types of coins and the terminology involved can be a bit overwhelming. Proof coins, bullion coins, certified coins - how are they different, and which one is the right option for you to buy?
In this article, we'll go over the top five best gold coins to purchase for either investment or collecting purposes.
At the end of this article, you'll know exactly which coin is the best gold coin to buy, as well as what factors influence the price of the gold coin.
Top 5 Best 1 oz Gold Coins to Buy
#1 American Buffalo Gold – United States Mint
Minted by the United States Mint, beginning in 2006, the Gold Buffalo was produced to compete with the Canadian Gold Maple Leaf coin.
The main difference between the Gold Buffalo and the Gold Eagle is the gold they're made from. While both are made exclusively from gold mined within the United States, the Gold Buffalo is made of 24 karats .9999 fine gold. This is a slightly higher purity than the Gold Eagle coin, which is made of 22 karats .9167 gold.
#2 American Gold Eagle – United States Mint
Since its debut in 1986, the 1-ounce Gold Eagle coin has been one of the most popular coins produced by the United States.
Made of gold exclusively mined within the United States, the 1-ounce Gold Eagle coin is also considered to be legal tender, with a face value of $50 USD.
#3 Gold Maple Leaf – Royal Canadian Mint
Minted every year by the Canadian government, the Gold Maple Leaf coin is made of 100% pure gold mined from within Canada.
Since the Gold Maple Leaf's debut in 1979, this coin has become a favorite amongst investors and collectors alike due to its quality and purity.
The Gold Maple Leaf is also recognized as legal tender in Canada, carrying a face value of $50 Canadian dollars.
#4 Gold Britannia – United Kingdom Royal Mint
Minted by the United Kingdom Royal Mint, the 1-ounce Gold Brittania was refined in 2013 from .9167 to .9999 pure gold.
The Gold Brittania carries a face value of $100 and contains one troy ounce of pure gold.
#5 Gold Krugerrand – South African Rand Refinery
The 1-ounce Gold Krugerrand coin was first produced in 1964. The Gold Krugerrand was the first South African gold coin that was available to the public.
Unique from the other gold coins on this list, the South African Krugerrand contains only 91.7% gold. The remaining portion of the Krugerrand coin consists of copper.
The Krugerrand is widely available and is one of the most popular gold bullion coins on the market today.
How Are Gold Coins Valued?
Now that you're familiar with the types of gold coins available on the market, you're probably wondering how to assess a fair price to pay for the coins.
While gold is typically traded by weight at the going market rate or "spot price," the price of a gold coin can vary widely based on a variety of factors.
Some of the factors that influence the price of a gold coin include the weight, type of coin, condition, and even the individual seller of the coin.
How to Find the Best Gold Coin Prices
When it comes to gold coins, there are a few types of coins that you should be aware of. Some types of coins include:
Choosing the Best Size Gold Coin
When it comes to gold coins, a coin's size is an essential factor in determining its value. Coins with larger diameters and thickness are worth more than coins of a smaller size.
It's important to note that size alone isn't the only determining factor. Coins that are more scarce or that have historical context may fetch a higher premium, regardless of their size.
Condition of the coin
Another critical factor in determining a coin's value is the condition of the coin. Collectors are likely to pay a premium for coins that are more appealing to the eye.
Coins that have been assessed by a professional coin grading company (such as NGC) are assigned a grade based on their condition.
As mentioned above, this grade is based on the Sheldon Coin Grading Scale, which ranges from 1 to 70. A coin with a higher grade is more valuable to collectors than the same coin with a lower grade.
That's right, even the location where you purchase your gold coins can affect the value of the coin. When making purchases of gold coins, it's essential to ensure you're buying from a reputable dealer. Some gold dealers use shady tactics, charge hidden fees, and have a high sales tax rate.
Many collectors and investors choose to buy their gold coins from reputable online dealers. Buying gold online helps avoid the pressure of in-person sales, allowing you to make a more informed decision. Make sure to read the reviews and do some research about the company before making a purchase.