Monday, September 22nd, 2014 MST

Information on Gold Investments

Gold investment coins provide hedges against currency debasement and devaluation. Yet when investors search the Internet for information about gold investments, they often are confused by the many sites that promote numismatic and collector coins, which sell at high premiums to their gold content.

Gold bullion coins, on the other hand, sell at small premiums over the value of their gold content and make the best gold investments. This website attempts to clear up any confusion by offering information on gold, by explaining the advantages of bullion gold coin investments over numismatic coins, and by discussing the attributes that make gold bullion coins the best gold investment.

Owning gold investment coins

Americans regained the “right” to own gold bullion on December 31, 1974. Previously, since President Roosevelt’s 1933 “gold call-in,” Americans could own only numismatic coins whose prices were determined more by collector interest than by the value of their gold content. Numismatic and collector coins sell at huge markups, sometimes at prices many times the value of their gold content. Gold bullion coins sell at small markups over the value of their gold content.

New Era in gold investments

The 1974 restoration launched a new era in gold investments. Trading in restrikes of the Mexican 50 Pesos and Austrian 100 Coronas gold bullion coins became quite popular. However, it was the introduction of South African Krugerrands that laid the foundation for today’s vibrant gold bullion coin market.

The best-selling gold investment coins

Today, American Gold Eagles are the best selling gold investment bullion coins in the world.  The  Krugerrand, although now rarely imported into the U.S. for the investment market, remains immensely popular, with thousands trading daily in the U.S.  Krugerrands generally sell at smaller premiums over spot than Gold Eagles. Still, Gold Eagles are the best selling gold bullion coins in the world, as millions of investors have made them their preferred gold investment.

Other gold bullion coins

Canadian Maple Leafs, once nearly as popular as Gold Eagles, have fallen into disfavor as gold investments because the coin’s design results in the coins being easily scratched and damaged, which results a weaker re-sale market.

Gaining popularity in the U.S. are the Perth Mint 1-oz Kangaroos, which are .9999 fine (pure) gold.  Each coins comes in a protective plastic capsule, which keeps the coin in pristine condition.  Generally, Kangaroos sell at lower premiums than Gold Eagles.

Mexican 50 Pesos and Austrian 100 Coronas are lesser known gold bullion coins, which often can be bought at smaller premiums than Krugerrands, make excellent gold investments. Gold bullion investors seeking low premium gold coins should always inquire about the availability of Mexican 50 Pesos and Austrian 100 Coronas.

Gold Eagles and Krugerrands carry greater appeal than 50 Pesos and 100 Coronas for several reasons. First, a Gold Eagle and a Krugerrand contain one ounce of gold. By contrast, the 50 Pesos contains 37.5 grams (1.2057 ounce) and the 100 Corona .9802 ounce. Americans are more comfortable with ounces than with grams or fractional ounces.

Additionally, Gold Eagles and Krugerrands have their gold contents stamped on them in English. In contrast, 50 Pesos have “37.5 Gms ORO PURO” stamped on them and 100 Coronas do not have their gold content on them.

Less-known gold investment coins

Less-known gold investment coins include Austrian Philharmonics and Hungarian 100 Koronas (sister coins to the Austrian 100 Coronas).

Although there are other gold investment coins, mostly old European gold bullion coins, they should be avoided by most investors. Old European gold coins rarely have their gold content stamped on them.  At times though, old European gold coins are available at very low premiums, which appeals to many investors.  When CMI Gold & Silver Inc. has low premium old European gold coins, we usually post them on our Gold Specials page.

Gold investments for the long-term

CMI Gold & Silver Inc. is not in the business of predicting short-term price moves in the gold and silver markets.  Yet we are confident that gold and silver prices will work their way higher over the long-run because of the financial state of affairs in the U.S.

As noted on this page, we recommend gold bullion coins that sell at small premiums over the value of their gold content, not collector or numismatic coins.

For readers interested in investing in gold, we encourage them to follow the links on this page for specific information about the various gold bullion coins available as gold investments.

After perusing the pages, please call if you have questions or would like to discuss gold as an investment. We take calls 7:00 a.m. to 5:00 p.m. MST, Mondays through Fridays.  For still more information about doing business with us, visit our Doing Business With CMIGS page.