The obsession with gold has remained unchanged over the millennia. While most monetary systems are no longer gold-backed, the metal is a hedge against fiat currencies. Unlike these currencies, gold has a finite quantity that cannot be unjustly expanded. Thus, it maintains its intrinsic worth.
Thus, many investors want to invest in this precious asset to diversify their investment portfolio. This article will discuss the different types of gold coins and the best ones to invest in. Once you are well-informed about what is available out there, you can easily navigate your future with gold investments.
How Are Gold Coins Valued?
Gold is a popular option among many savers and investors for various reasons. It possesses characteristics that make it an excellent alternative to standard securities like equities and bonds. Many investors regard gold as a store of value, even though it is a cash-neutral asset.
Furthermore, gold is a wonderful means of transferring investments and broadening your investment strategy. This is because its value tends to be steady over time. The asset is easy to liquidate, and it will also always hold its worth, even if the global Gold supply continues to diminish.
Investors need to note that not all gold coins are the same. Contrary to popular belief, the weight of gold is not the only critical consideration when it comes to investing in gold. It is common to find two identical coin types with significantly different values. As such, investors must understand the exact elements that determine the value of gold coins.
When it comes to coin valuation, we must first begin with the coins themselves. There are several distinct gold coins, some of which are quite different in shape and size. You will need to know the most popular kinds of coins to find out the worth of any specific coin.
The following are examples of the most popular types:
These refer to gold coins that a reputable gold grading company has verified. According to the Sheldon Grading Scale, they often have a value ranging from one to ten. The higher the coin rating, the more value it is worth. Note that a coin with a grade has a higher value than the same coin without a grade.
These are coins made from various precious metals, like gold, silver, and platinum. Bullion coins are often purchased in large quantities and traded as investments. Generally, the price of bullion coins is primarily dependent on the price of gold at the time of the transaction.
Proof coins come from different manufacturers who value them independently. These coins are of exceptional quality and come in special packaging that aids in preserving their value.
A typical gold coin that is not easy to get is uncirculated. These coins may be out of circulation during production or may have a mint state of more than sixty. But, they often have a unique value. Uncirculated coins manufactured by mints are less expensive for investors than proof coins.
Another vital consideration when valuating gold coins is their size. Before investing in gold coins, it is crucial to know that the bigger, thicker, and wider the coin, the higher its value. Note that a large gold coin will not always have the highest value. But, it plays a vital role in establishing a value baseline.
Generally, gold coins are available in several sizes. These include partial ounce and ounce sizes. Single-ounce gold coins are cheaper than the 1/10-ounce, ¼-ounce, and 1/2-ounce coin alternatives. This is due to their higher insuring, packaging, and minting costs.
But, based on your needs, there are certain advantages of investing in lower-value coins. For instance, it is easier to handle smaller gold pieces in your bug-out bag or when traveling. Furthermore, it is easier to sell a 14-ounce or 1/10-ounce coin than its one-ounce counterpart when trading such coins.
Likewise, lower denomination coins may exchange at a greater price at pawn shops or similar sites. They may also trade at a larger premium than when you purchased it.
The condition of a gold coin is another primary determinant of its value. It refers to the grade it receives from its sustained wear and tear, how well it was originally struck, and its preservation level. They tend to receive a grade ranging from one to seventy, with a higher grade meaning it has a higher value.
A high-grade gold coin essentially means that it is free of scratches or imperfections. Keep in mind that coin grading is not a precise science. In essence, it is a standard opinion that a majority of numismatists and coin dealers would agree with.
Minor features in a coin's appearance may drive it to a higher grade if they have a favorable influence. On the other hand, a little flaw on the coin could cause it to get a lower grade. The location and size of the flaw and its impact on the coin's look are factors that can cause one individual to give it a higher grade and another to provide it with a lower grade.
About Gold Coin Sellers
The dealer from whom you purchase your coins affects their value. Different coin vendors demand different costs. So, it is your responsibility to ascertain that you obtain the appropriate one for the best price.
Thanks to the advent of online gold dealers, most gold buyers do it on the internet. Not only is it quick and simple, but it is also a useful technique to compare costs from several different merchants. We suggest online shopping to prevent high-pressure sales approaches and ascertain that you are buying at a fair price.
Top 7 Coins to Buy as an Investment
Are you looking for the best gold coins to include in your investment portfolio? Below is a list of the 7 top gold coins to purchase as an investment.
1. Royal Canadian Mint – Gold Maple Leaf Coin (1oz)
Every year, the Canadian government issues this bullion coin. The coin is manufactured entirely of Canadian gold and only by the Royal Canadian Mint. These manufacturers are known globally for their high grade and outstanding purity.
The Canadian Gold Maple Leaf consists of .9999 fine gold, making it one of the world's purest official bullion coins. Many experts often refer to this coin as the gold standard.
These coins, which were first struck in 1979, have become the most sought after and well-known in the world.
In addition, the face value of this gold coin is fifty Canadian dollars, but it could be worth significantly more to investors. Take note that the back of this gold coin features a single, striking maple leaf design, while the obverse features Queen Elizabeth II of Canada's face.
Fractional quantities such as 1/20 ounces, 1/10 ounces, 1/4 ounces, 1/2 ounces, 1 ounce, 10 ounces, and up to 1 gram are also available. For individuals with a limited budget, the various sizes of Canadian Gold Maple Leafs give an easy entry point into gold investing.
2. Perth Mint – Gold Kangaroo (1oz)
The 1oz Australian Gold Kangaroo was first minted in 1987 by the Western Australian Government. This popular gold coin features a beautiful kangaroo design. It originates from a mint that is well-known worldwide for producing high-quality coins.
Perth Mint's most popular and most reputable product is 1oz Gold Kangaroo and is issued as Australian legal money.
Investors and collectors adore this .999 world-class gold piece and often value it at 100 Australian dollars.
The emblem of Queen Elizabeth II appears at the front of the Gold Kangaroo. On the other hand, the reverse has changed since the coin's first issuance. Initially, the back of these gold coins featured an Australian gold nugget.
The design was updated in 1989 to include a more commonly recognized Australian symbol: the kangaroo. The Australian kangaroo is an iconic depiction of Australia's amazing biodiversity. It brings the Gold Kangaroo coin collection to life.
The Australian Kangaroos are expertly made and come in various designs. These coins are one of only a few significant pure Gold coins whose reverse design changes every year.
3. US Mint – Gold Buffalo Coin (1oz)
Although the US Mint began producing this coin in 2006, it has created a strong buzz in the market. The Gold Buffalo's main objective was to compete with America's Gold Eagle and Canada's Maple Leaf. As such, it is a fantastic gold-rated product that serves as a great investment.
The Gold Buffalo is the first coin with .9999 fine gold issued in the United States. As such, it automatically qualifies to be among the best investments to get involved in as soon as possible.
Because of the coin's legal tender status and typical 1-ounce size, it is a solid addition to a precious metals IRA.
The coin features a design that is reminiscent of the original Buffalo nickel. This has resulted in a vibrant collector fan base for this franchise. The United States Mint manufactured the Gold Buffalo in several sizes in 2008 only. This is the only time that fractional Buffalo gold coins have been in existence.
Thus, coin collectors continue to value them. In addition, the fact that it is legal cash at fifty dollars means a lot to them.
4. Austrian Mint – Gold Philharmonic Coin (1oz)
The Austrian Gold Philharmonic coins are the most widely traded gold coins in continental Europe. The Austrian Mint (Münze sterreich) issues them in various sizes, varying from 1/10 ounces to 1 ounce.
After a three-year developmental process, the Austrian Philharmonic gold coins made their debut in 1989.
Also known as Vienna Gold Philharmonics, these coins have rapidly spread their influence across the global gold market. Note that these are the only coins with a euro denomination on this list.
In addition, the coin's design, like its name, pays homage to Vienna, Austria's capital city, and it's historic prospering of musical arts. On the obverse of the coin, there are a variety of orchestral instruments.
Currently, the Philharmonic is a one-hundred euro 24 karat gold product. Even though the coin is readily available, it is an elegant-looking item popular among collectors. As such, it is the craftsmanship of this coin that has made it so popular.
5. UK Royal Mint – Gold Britannia (1oz)
The purity of these well-known British gold coins has constantly grown, with coins struck in 2013 and later having a fineness of—.9999 Gold.
The Gold Britannia's have a high value and a high liquidity potential. This is owing to their aesthetic design of Queen Elizabeth and Britannia and the Royal Mint's illustrious history.
Britannia has been portrayed on coins as the Roman Empire's symbol for the British islands for many ages. This eye-catching coin is likely to remain a popular choice among gold investors. They are available in 1-ounce and 10-ounce sizes.
The UK Royal Mint can trace its activities back over a thousand years, making this coin from one of the world's oldest mints. The current coin has a face value of 100 Euros, although it is worth more to knowledgeable collectors. This coin may be retained within gold IRAs. Thus, it is a good investment if you are looking to diversify your precious metal holdings in retirement accounts.
6. South African Rand Refinery – Gold Kruggerland (1oz)
The South African Krugerrand was the first gold coin of the contemporary period when it was first issued in 1967.
It immediately became the world's most popular gold coin. It made up the bulk of gold coinage traded on the foreign market by 1980.
But, this 1-ounce gold coin's good fortunes were short-lived. Concerns about South Africa's apartheid-era, a regime comprising of racial segregation, led to economic trade sanctions against the African country. In turn, this severely harmed the popularity of the South African Krugerrand.
The Krugerrand is still produced at the South African Mint's Rand Refinery. Nonetheless, its market share has dropped to a fraction of what it was in the early 1980s. This is mostly owing to the advent of a slew of other popular gold bullion coin projects in the interim.
Even yet, the South African Krugerrand retains its exceptional value, making it a fantastic addition to any precious metals collection. The Krugerrand features less gold than many of the other gold coins on our list.
The unique-looking coin consists of copper content that accounts for 8.3 percent of the coin's weight. On one side, the coin displays South Africa's first president. On the other side, there is a symbol of the country's national animal, the springbuck.
7. US Mint – Gold Eagle Coin (1oz)
The American Gold Eagle edition, debuted in 1986, has remained a perennial favorite. This is due to its high level of gold purity and the relatively cheap costs above spot.
The American Gold Eagle range comes in four varying sizes. They include tenth-ounce, quarter-ounce, and half-ounce. Nonetheless, gram for gram, the 1-ounce gold coin stated here offers the highest value to investors.
The 1-ounce American Gold Eagle has a face value of $50 and contains one troy ounce of .9167-fine gold. It is official legal currency, much like the other gold coins in this United States Mint bullion series. Of course, spending this magnificent gold coin at face value would be considered foolish.
It is among the most popular bullion gold coins in investment portfolios, at the very least. Due to its highly liquid nature, it provides among the top returns on one's investment. Furthermore, it is extremely popular in the financial sector.
Final Thoughts On Gold Investment
When you first start collecting coins, it is exciting to discover new types of coins. It takes a lot of research to determine whether a coin is worth the investment. You need to understand its manufacturing process and how it retains its value.
Although chasing down trendy coins can be a lot of fun, keep in mind that there is a reason why so many popular coins have remained popular for so long. Generally, gold coins make excellent investment options.
But, you must be willing to do your homework and keep the coins in a secure location away from your home. Consider including coins in your financial portfolio's 5% to 15% diversity investments. You could also opt to make it a cost-effective retirement choice by investing in a gold IRA.
The American Gold Eagle has the best resale value, gram for gram. It has a nominal value of $50 and is issued as American legal money. Despite being highly liquid, the American Gold Eagle exists in three other sizes. They include half-ounce, quarter-ounce, and tenth-ounce.
Gold coins are among the most popular investment options all around the world. It is not only a low-risk investment option, but it also provides better security. Thus, it is one of the most stress-free investment options. Gold is believed to be a tangible item with a long history of commanding a high market value.
Experts believe that the Canadian Gold Maple Leaf coin is the purest gold coin available on the global gold market. It consists of .9999 fine gold and features unique designs that attract investors and collectors. Likewise, the American Gold Buffalo Coin is the Canadian Maple Leaf equivalent from US Mint.