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Why Should I Invest in Gold Coins?

There are many reasons why investment in gold coins is a good idea.

Gold is a store of value, and will help to preserve your wealth through difficult economic times, like the present. Gold is a tangible asset, easy to acquire and easy to sell, and easily traded.

What about investing in gold coins (as opposed to gold bullion bars, or remote ownership investments)? Why should you invest in gold coins in particular?

There are many advantages to taking ownership of gold in this way. First, the coins are yours, to be stored, hidden, redistributed or put in a vault or buried as you wish. Whether acquired from a dealer, an online auction or an online store, gold coins represent a high monetary value in a small, convenient form which can be reconverted to fiat currency whenever you need some. They are unlikely to lose their value over the time you own them, and very likely to increase in value.

The price of golden coins moves along with the spot price of gold, which is another advantage – you can track the current minimum value of your coins very easily, just by knowing their weight, and checking today’s gold spot price, which is published everywhere. Recently, with the price of 1 ounce of gold reaching $1000 and remaining there, the owners of gold coins have been smiling broadly!

You have many choices in the type of gold coins you can acquire. First, there are bullion coins, issued every year by many countries to allow anyone to own gold relatively cheaply (‘cheap’ meaning with a low percentage premium over spot). These coins include the American Gold Eagle, the American Buffalo, the Canadian Gold Maple Leaf, the South African Krugerrand, the Chinese Panda and many more. You will notice that the popular names of bullion gold coins traditionally derive from the images they carry.

If you like collecting, you can also get your gold in the form of historical or numismatic golden coins, like the American Indian Heads, Liberty Caps, St Gaudens, or Double Eagles, British Sovereigns, European Ducats, Crowns and many others. These coins were issued in their millions, in the days when currency coins made of precious metals like gold and silver were still being made. The online auction sites have brought such beautiful gold coins to a wide audience, and they are very popular investments, though their premiums are often higher than for the bullion coins.

While gold coins weighing one ounce are obviously selling for well over $1000, there are fractional weights (half-ounce, quarter ounce and so on down to one-tenth of an ounce) on offer for most bullion coins, while the historical coins are much smaller anyway, so it is fairly easy to build up your investments by starting with those.