- Purchase Gold Bullion Coins
Since time immemorial, gold has been considered the best investment you can possibly make. The intrinsic value of this precious metal has made it a safe haven in times of economic crisis. Financial experts recommend diversifying 5%-10% of your investment portfolio into the yellow metal for security and stability during economic lows. When paper currencies fall in value and stocks crash, your gold investment acts as your back-up. This commodity has therefore been unanimously acknowledged as a safe bet for any investor.
Investing in physical gold
There are multiple ways to invest in gold. Buying physical gold is one of the most common methods. You can buy gold bullion coins or bars from a reputed dealer. Of the two, coins are very popular purchases, as they are affordable and easy to re-sell. Available in several types, weights and sizes, you can buy one or a couple of gold bullion coins based on your investment capacity.
Buying gold bullion coins
Gold bullion coins are issued by mints in the country to individuals who wish to possess and trade this precious metal. Gold bullion coins are small, attractive and easily portable. They can be stored, collected and even make great gifts.
The face value of a bullion coin is printed on it. Its real value is a measure of its weight, the current gold price in the market, and the premium that presently prevails in the gold market.
Bullion gold coins are different from numismatic gold coins. The latter variety comprises old, rare or special edition coins. Such gold coins are acquired by coin collectors as opposed to gold investors. They are difficult to resell and as your potential buyer group will consist mainly of coin collectors only. Besides this, a substantial premium is charged for collectible and numismatic coins that are issued by mints, and can cost you much above the present spot price. Here spot price refers to the delivery price of physical gold, which is calculated 2 days from the day of trading.
If you are looking to buy gold coins, go for bullions and not collectible ones unless you want to combine your coin collection hobby with an active gold investment.
Prices of gold bullion coins
When you buy gold bullion coins, do not expect a uniform quote across all dealers. Dealers will sell you a gold coin at a specific amount above gold’s spot price (spot price is discussed above)- some may sell it for $60 above the spot price while others may quote a higher or significantly lower price. A premium could also be charged, subject to factors unique to the particular offline or online dealer.
The different gold bullion coins you can buy
American Gold Eagle: The American Gold Eagle has become a popular choice of investors all over the United States and the world. The value of these gold coins is determined by its precious metal content and a small premium covering distribution and coinage. These are 22 karat coins that contain the specified quantity of pure gold and little traces of alloy. This makes them harder and resistant to scratches, so you don’t have to worry about any adverse effect on the resale value. You can buy a one ounce American Eagle gold coin or in fractional quantities, such as ½ oz, ¼ oz and 1/10 oz.
Canadian Gold Maple Leaf: Available as one ounce, ½ oz, ¼ oz and 1/10 oz coins, this variety is issued by the Royal Canadian Mint. It is 100% pure with no alloy traces. As this makes it soft and susceptible to scratches, it is encased in plastic.
Chinese Gold Panda: A Chinese government issue, the Gold Panda is available in a range of weights, with the face value and minting date printed on the coin.
South African Gold Krugerrands, Gold Buffalo Coins and Austrian Gold Philharmonics are other varieties you can consider when you buy gold coins. Leading precious metal dealers will offer most of the popular gold bullion coins for sale.
Buying gold coins online
Many people prefer to buy gold coins online for the convenience and ease it offers. You can research different gold coin dealers online and compare prices to zero in on a competitive deal. As dealer mark ups are subjective, it is important that your conduct a careful assessment to make an informed purchase decision.
APMEX is one of the best known online gold dealers offering good prices and quality service. You don’t have to worry about hidden costs (the only additional fee charged is towards shipping) at this dealer, and you can be assured of timely deliveries. APMEX offers multiple payment options, including credit card, check, and money order.