Gold coins can be a great investment, particularly if you want to diversify your portfolio and get some physical investments. The US Mint alone sold more than 1 million ounces of gold coins in 2021, showing a sharp increase over previous years.
It’s a good time to buy gold coins, but you might not be sure which types of gold coins to buy. Read on for a guide to gold coins and some advice on the best gold coins to buy!
Bullion vs. Numismatic Coins
The first thing you need to understand is the difference between bullion coins and coins with more “numismatic” appeal. Although these categories both include gold coins (and silver coins!), there are a few key differences.
Bullion coins are manufactured by various national governments and generally contain 1 ounce of pure precious metal. These can be made of silver, gold, and even platinum and palladium! Although beautiful to look at, these bullion coins often don’t have much premium above their inherent metal value.
Numismatic coins are coins that have more worth than simply their “melt value” or inherent metal value. These may be rare or old coins and were usually minted for the purpose of circulation, just like pennies, quarters, and other coins.
It is sometimes difficult for new buyers to tell the difference between these coins. Some people will try to make you think a bullion coin is worth a lot more because it resembles a more valuable numismatic coin, but don’t be fooled!
A good way to remember is this: the last circulation gold coins in the US were minted in 1933 during the Great Depression. Other countries of the world also stopped minting gold coins for circulation around the same time, with a couple of minor exceptions.
You will also see words on a bullion coin that say something like “1 oz gold” or “.9999 gold” or something along those lines. This denotes that it is a pure ounce of gold bullion and was not made for regular circulation.
While there are benefits of buying gold numismatic coins and bullion coins, we generally recommend that you stick with bullion coins. This is especially true if you’re just starting out and don’t know much about numismatics and coin collecting.
The Best Gold Coins to Buy
Although there are many types of gold coins on the market, we recommend that new investors focus solely on one type of gold coin. Namely, the gold bullion coin. Although older, numismatic coins can be fun for coin collectors, it is harder to make sure you’re getting your money’s worth for your investments.
As far as the best gold bullion coins, there are quite a few excellent ones from a variety of countries to choose from. The differences between these coins are small and often come down to the beauty of the coin designs as well as any sociopolitical events related to that particular country.
The American Gold Eagle is a favorite for investors and has become a staple among gold buyers. The US Mint produces these every year in a variety of sizes, including 1 oz, 1/2 oz, and 1/10 oz.
There’s also the Canadian Maple Leaf. Widely billed as the purest gold coin in the world, this beautiful coin has been a staple among investors and collectors for decades.
If you want a classic bullion coin, the South African Krugerrand is an excellent choice! These coins were the first modern gold bullion coins, and quickly became a huge part of the international gold market. Although their sale was restricted for some time because of the country’s history of apartheid, they have become more common once again in recent years.
There are plenty of other great bullion coins to choose from as well. Some of these include the Mexican Libertad, the Austrian Philharmonic, the British Britannia, and the Australian Kangaroo. You can choose to only purchase one type of these coins, or perhaps try to get one of everything!
Where to Buy Gold Coins
Many people want to know where to buy gold coins. There are actually several different ways you can get them! They all have their own perks and drawbacks, so find a method that works for you.
One way is to go to a local coin shop (LCS) and talk with the owner about purchasing gold coins. They will have a lot of knowledge about coins, and it’s nice to talk with someone in person to find out what you need. Unfortunately, these coin stores often deal with more numismatic than bullion coins, and they often have larger markups with smaller inventories.
You can also visit coin shows. These gatherings are great if you want to rub shoulders with plenty of coin collectors and dealers, and you’ll have plenty of great opportunities to find deals. The downside is that you’ll have to wade through plenty of subpar deals, and you’ll need the knowledge to get what you want without overpaying.
However, the resource that many experienced buyers go with is a dedicated precious metals dealer. These dealers typically make it their job to provide gold, silver, and other metals to customers with as little hassle and cost as possible. If you’re lucky enough to live near one of their centers, you may be able to go talk with them and figure out a game plan to invest in gold coins.
You can also order precious metal coins by phone or online and have them shipped to you. Many people around the world do this, particularly if they’re far from a physical store that has what they want.
Dangers to Avoid
Even with legitimate precious metal companies, you might still end up paying more than you’d like to have investments and security on hand. But how can you avoid this?
One of the best ways to save money is to try a company like CMI Gold & Silver. They require a minimum order amount to buy precious metals through them, but they’re able to save serious investors a lot of money by selling in bulk!
You also want to avoid buying with your emotions. Many coin dealers will try to use fear or greed to sell coins to people at a huge markup. Don’t get caught up in the hype!
It’s also wise to know exactly what you’re buying and what other coins like yours are worth. Particularly if you’re dealing with numismatic coins, realize that little things like the condition, date, and even mintmark can make a huge difference in price!
Learn More About Buying Gold Coins
Now that you know a bit about the best gold coins to buy and some methods for buying them, it’s time to start investing! You don’t want to wait for prices to continue climbing before you get in on the gold market.
But if you’re still unsure where to start or you want to find out more, don’t worry.
Please feel free to contact us with any questions or concerns about precious metals you might have. We’ll be happy to help you and make sure you’re confident in all your investment options!