Gold and silver remain a top choice among investors who prefer the less volatile assets with stable returns. Precious metals are the top pick for people who want to mitigate the impact of inflation and ensure that their money retains its value. Therefore, there is high demand for these precious commodities.
The best part about gold and silver is that you can buy them in various forms, like coins, bars, and bullion. Like other investments, the demand and supply for gold and silver influences their price. There is a high demand for gold since people use it for investment purposes, industrial processes, and jewelry.
Moreover, central banks worldwide keep gold reserves and purchase them to pay foreign debts. As an investor, there are various options available for you to invest into this precious metal. We will discuss these types in this article to give you a better idea about them.
Types of Gold Coins
Investors have various options that they can analyze when investing in gold. Exploring the options will allow them to learn about the returns they can get on their investments. Most investors go for the gold bullion coin since its value comes from the precious metal content.
Another option that is available for investors is premium coins. The rarity and the metal content influence the premium coins' value. Gold coins minted before 1933 are known as premium coins, and many consider them to collectibles. They have higher demand and higher value among all the coins.
Lastly, you can go for the limited minted coins, which can appreciate due to the increase in the spot price of the metals and their rarity. Unlike premium coins, they are readily available and enjoy a higher value than their bullion counterparts.
The Big Six
Now that you understand the types of coins, you might want to know about the best coins worth investing in. Here are some valuable coins you can find in the market.
1. Gold American Eagles
The Gold American Eagles are the most common gold bullion throughout the US. These coins were introduced in 1986, and only 16 million of them exist since their launch. It is one of the globally recognized coins that provide investors with the option to liquidate it for cash quickly.
The coin has a distinct design with Lady Liberty on one side and an eagle flying over the nest on the other side. Over the last few decades, the coin has gradually increased in value. Therefore, it is a preferred coin for investors who want to enjoy a decent return on their investments.
2. Gold Australian Kangaroos
Another popular coin that you can find in the market is from Perth Mint Kangaroo. The unique thing about this coin is that the back side of the gold coin changes from time to time. Like the Canadian Maple Leaf Gold Coin, the Perth Mint Kangaroo has a purity rate of 99.99%.
On the front side of the Perth Mint Kangaroo, you can see Queen Elizabeth II, while the back side changes every year. The coin is exceptional for investors who want to diversify their portfolios. It can help you mitigate the effect of riskier investments, making it an ideal asset to have.
3. Gold Canadian Maple Leafs
The Gold Maple Leaf coin is one of the purest bullions in the world, with a fineness of 99.99%. This coin came about in 1979 by the Royal Canadian Mint with high demand worldwide. Its market value depends on the spot price of the precious metal.
The front side of this coin has Elizabeth II, whereas the back has a Maple leaf. Since the 24 KT gold is relatively soft, you can see a few marks on the Gold Maple Leaf coin. These marks can be a fairly common issue with pure gold.
4. Gold Chinese Pandas
The Chinese Gold Panda Coin is also a popular choice for investors worldwide. The People's Republic of China first minted these coins in 1982 with a composition of 99.9% fine gold. In 2016, the People's Republic of China started to mint this coin in metric system sizes due to the increasing demand.
The Chinese Gold Panda Coin has a unique design from other gold coins. The coin's back side shows the Hall of Prayer in the Temple of Heaven and a Panda on the front, with changed depiction every year.
5. Gold South African Krugerrands
The South African Krugerrands coin has global recognition, making it one of the most popular coins. It is the second most popular coin in the US and is in especially high demand. The South African Krugerrands surpasses the Gold Eagle Coins in Europe, since it is the most popular coin in the continent.
The Rand Refinery and the South African Mint minted this coin in 1967, and more than 42 million are currently in the market. Therefore, it makes the South African Krugerrands the most mined gold coins. According to the South African Reserve Bank Act (SARBA) of 1989, the Krugerrands are a legal tender nationwide.
The front side of the coin has the face of Paul Druger, whereas the other side shows Springbok, the national symbol of the country. It has a mass of 33.93 grams, a diameter of 32.77 mm, and a thickness of 2.84 mm.
6. Gold Vienna Philharmonics
Lastly, the Vienna Philharmonics coin is also a popular choice among investors. The Austrian mint introduced this coin in 1989 and named it after the famous Vienna Philharmonic orchestra. It has a unique design with the depiction of the orchestra instruments on both sides of the coin.
The coin is a legal tender throughout Austria, and you can use it for various transactions. Also, the Vienna Philharmonics is one of the best-selling coins worldwide and is the only bullion coin with a face value in Euros.
Things to Consider When Buying a Bullion Coin
A gold bullion coin is an excellent investment to enjoy decent returns over time. However, knowing a few things is imperative before buying a gold coin. Here is a list of factors you should consider when buying a gold bullion coin.
Purity
Purity is the most crucial factor you need to consider when buying a gold bullion coin. You can measure the purity of a gold coin by learning about its Karat (KT) or fineness. The 24 Karat (KT) is the purest gold you can find, which has 24 out of 24 parts of gold.
The 22 (KT) has 22 parts of gold with two parts of other metals like silver. Another way to check the purity of a gold coin is by checking its fineness. The fineness measures the portion of the gold compared to the total weight, with a 24 KT coin having a fineness of 999.9.
Packaging
Another thing you need to consider is the packaging of the gold coin. It is best to purchase gold coins that come with proper packaging. The packaging saves the gold coin from possible damage.
If you buy the coin, you should not remove the tamper-proof packaging since you will find it difficult to resell. You need to keep this point in mind when buying a gold coin, since the packaging can significantly impact the value of your gold bullion coin.
Dealer
The dealer's reputation is also something that investors should keep in mind when buying gold coins. Choosing the right dealer will help you get a high-quality gold coin and an excellent price. So, you should look up the dealers and choose the right one.
Read online reviews or consult with other people who have purchased gold coins from a reputable dealer.
Fees and Commissions
Many people don't know about the specific fees and commissions you need to pay when buying or selling a gold coin. You would have to research the percentage of the fees or commission that you have to pay for different types of gold coins.
Risks
While many consider gold coins as the safest option, they have some risks. Investors should research the gold coins available in the market and their risks to make the right decisions.
There is no way to tell when the price of the gold coin will go up or down. You need to keep an eye on the latest economic developments, which can influence gold prices. Also, avoid making hasty decisions for short-term benefits and focus on earning optimal returns in the long run.
Final Word
Bullion and premium coins have international recognition and offer investors a wide range of options. You can invest in gold coins to enjoy various benefits such as portfolio diversification, good returns in the long run, etc.
The best thing about purchasing gold coins is that they sit perfectly with your investment goals and personal preferences. Therefore, you can start researching the types of gold coins available and pick the best one suitable for your purposes, budgets, and requirements.
