Gold is an incredibly hot investment right now, so it would make sense that many people are looking at different ways to buy gold. Some people choose to put their money in futures contracts, while others are more interested in getting shares in those companies that mine gold.
Many people look at ETFs as their precious metals purchase of choice, of course, and even those who like to keep money in mutual funds that focus on gold. If you're really looking to get into the world of gold investing, though, you've got to follow experts advice and take a look at buying physical gold.
Gold is truly a unique asset. Not only is it something that you can hold in your hand, but it's something that you can liquidate and quickly turn to cash. It is undoubtedly a beautiful metal to admire, but it's also a vital part of the industrial economy and plays a considerable role in electronics.
If you're looking to invest, you can choose any in-demand products that make up the current gold market. You won't even have to worry about something happening to your purchase, as gold is resistant to corrosion and doesn't tend to lose value over time. You won't even have to worry about paying taxes on your gold until you choose to sell it!
Today, we're going to take a look at some of the gold coins that might be worth your time as an investor. Once you know what's out there, you can learn how to chart your future with gold.
- How are Gold Coins Valued?
- Coin Types
- Consider Size
- Consider Condition
- About Sellers
- Best Coins to Buy for Investment
- Final Thoughts
How are Gold Coins Valued?
Unfortunately, not all gold coins are made equally. You might think that the only thing that matters is the weight of gold, but the truth is two different gold coins that weigh the same amount can have wildly different values. As an investor, you need to know exactly what factors play a role when valuing gold coins.
When we look at valuation, we have to start with the coins themselves. There are many different kinds of gold coins out there, some of which vary significantly in size and shape. If you're looking to figure out the value of any given coin, you'll need to know the more common types of coins. These common types include:
Certified coins are just that - coins that have been certified by a known grading company and are given a value of one to ten using the Sheldon Grading Scale. Coins with higher ratings tend to be worth more, but merely having a grade can make a coin worth more than an identical coin that has not yet been graded.
Bullion coins are typically coins made out of precious metals and tend to be purchased and sold as investments. Most people who buy bullion do so in bulk, with the price of bullion mainly being influenced by the price of gold at the time of sale.
These coins come from specific manufacturers and are valued generally based upon who makes them. Proof coins, which are incredibly high quality, tend to be sold in special packaging to keep their value longer.
An uncirculated coin is a typical coin that isn't readily available. These coins could be removed from circulation while being produced, or they might have a state of mint above sixty, but they almost always tend to have a special kind of value. Produced by mints, these coins tend to be cheaper for investors in relation to proof coins.
In the world of coin investing, size matters. If you're looking into buying gold coins, you have to know that bigger coins will be worth more. The wider and thicker the coin is, the more value it will generally have. It's not a given that a large gold coin will always be the most valuable, but this factor plays a massive role in setting a value baseline.
Coin grade is the condition of a coin. Coins tend to get rated from one to seventy, with higher ratings indicating that a coin is worth more. To get a higher grade, a coin must be essentially free of imperfections or scratches.
As you might imagine, plenty of coins are out in circulation right now that have high grades. You'll have to get an examiner (best if it's a third-party) to grade any coins you come across, and it's usually worth your time to store your coins in protective cases so that they don't lose value.
Best Coins to Buy for Investment
1. Royal Canadian Mint - Gold Maple Leaf Coin (1oz)
Each year, this bullion coin is minted by the Canadian government, using only Canadian gold and made exclusively by Royal Canadian Mint itself. They are well known worldwide for quality and making coins of exceptional purity, with this coin often being thought of as the gold standard.
First minted in 1979, these coins have become the most sought after and famous in the world. This coin has a face value of fifty Canadian dollars but can be worth even more to investors.
2. Perth Mint - Gold Kangaroo (1oz)
First minted in 1986, this is a much-beloved coin that sports a fantastic kangaroos design and comes from a mint known around the world for making excellent coins. The 1oz Kangaroo is Perth Mint's best-known product, and it's almost always the product in the highest demand.
Worth 100 Australian dollars, this .999 fine gold piece is beloved by collectors and investors alike.
3. US Mint - Gold Buffalo Coin (1oz)
A relatively new coin, the US Mint only started minting this particular coin from 2006 until now. Intended to be a competitor to Canada's Maple Leaf, the coin is also a competitor to America's own Gold Eagle. A fine gold-rated product, it's an excellent investment piece.
This gold coin isn't just for investors, though. Many collectors love the designs on each side, and the fact that it's actually legal tender at fifty USD makes a massive difference to many.
4. Austrian Mint - Gold Philharmonic Coin (1oz)
Coming from Austria, this gold coin from the Mint in Austria is meant to bring to mind the classical music once produced in Vienna. As the original gold coin in Europe produced for investment, this coin had a 1989 release date after a three-year development process.
Today's version of the Philharmonic is a 24 karat gold product with one hundred Euros value. The coin is an elegant-looking item that's a hit among collectors even though it is relatively easy to find, which means that it genuinely is the craftsmanship in this coin beloved by so many.
5. UK Royal Mint - Gold Britannia (1oz)
Though the coin has been around longer, it's only been since 2013 that the United Kingdom's flagship investment coin has hit the twenty-four karat mark. Designed to show Britannia and Queen Elizabeth, the coin itself is a fantastic depiction of Britain's culture and reputation.
This coin comes from a mint with one of the oldest pedigrees on Earth, as the UK Royal Mint can trace its operations back over a thousand years.
The current coin has a face value of one hundred Euros but tends to be worth more to suitable collectors. As a note, this coin can be kept in gold IRAs, so it tends to be a solid choice for investors seeking to expand the precious metal holdings in their retirement portfolios.
6. South African Rand Refinery - Gold Krugerrand (1oz)
The Krugerrand isn't the right coin for every investor. Though this coin has been around since 1964 and was a top-rated coin even from the moment it hit the market; the Krugerrand definitely has its share of detractors due to the very controversial history of the country in which it was produced.
The Krugerrand itself contains less gold than most of the other coins on this list, with about 8.3 percent of the coin being made of copper. The coin itself features South Africa's first president on one side and South Africa's national animal on the other, making it a truly unique-looking coin.
The major controversy surrounding the coin comes from the fact that it was first issued during the apartheid era. Because of South Africa sanctions, the coin became hard for collectors to find on the open market, and many other nations began to create alternatives.
7. US Mint - Gold Eagle Coin (1oz)
Finally, there's the Gold Eagle. It's the number one gold coin in the USA, released in 1986, and is made only of gold that has been mined within the US. An incredible coin with a face value of fifty USD, the coin is a bit bigger than the Gold Buffalo but just as collectible.
There's something fun about finding new kinds of coins when you start collecting. It takes a fair bit to decide if a coin will be worth your time and money, as you'll need to learn about how the coin is made and how it has held its value.
Though trendy coins can be very fun to chase down, you should remember that there's a reason why so many popular coins have stayed that way for many years.
If you're looking to find dealers who offer these coins, both for physical purchase and approved by the IRS for retirement accounts, read our review on the top gold dealers.