What is the best gold coin to buy for investment? What are its properties? Join me in yet another interesting post in which I will be taking you through a very important topic in the field of precious metal investments. Read on to learn more about it.
In the very vast gold bullion marketplace, establishing which coin is the best for you to purchase for investment can be quite daunting. There are many coins you can buy, each with their unique properties, and that you stand to benefit from in different ways. This implies that to decide which coin is best for you, you ought to first identify a couple of coins, study their properties, then pick the one that will align with your investment plan.
In today’s post, I have narrowed down the list of the best gold coins to just a few popular ones that are worth looking into. You may want to do your due diligence before getting started, but this list will get you started in the right direction. More about the coins in the next section:
The American Gold Eagle coin (One Ounce $50 coin)
This coin was first issued in 1986 and has since then been one of the top choices for gold investors. The two main reasons behind its popularity are:
- Its high purity results from its gold content
- Relatively low prices over the spot price of gold.
Currently, there are 4 different sizes of coins in the American Gold Eagle series, which include the half-ounce, quarter-ounce, tenth-ounce, and the one-ounce coin. Of the four, this coin has been perceived to offer the best value for gold investors, by weight.
A 1-ounce gold coin in the series has 1 troy ounce of gold that is 0.9167-fine. It is also usually denominated with a face value of $50. This means that, like all gold coins that are offered by the U.S Mint, the American Gold Eagle Coin is an official legal tender, though this does not imply that you get to spend this gold coin based on its nominal face value.
If you were to ask around, you’d find out that most bullion gold coin investors have this coin in their investment portfolio. Owing to this remarkable popularity in the gold investment industry, this coin is highly liquid and offers one of the best returns on investment.
The Canadian Maple Leaf, 1-ounce
Produced by the Royal Canadian Mint (RCM), this coin is one of the most popular ones you can find outside of the U.S. borders. RCM first issued this coin in 1979, and has been manufacturing Gold Maple Leaf versions in different denominations and sizes. Still, the one-ounce version is viewed as one of the best performers in the series, in terms of how viable they are, as well as their liquidity. Like the 1-ounce American Gold Eagle coin, this coin has a legal tender value of $50.
You can find the one-ounce Canadian Maple Leaf Coins in many portfolios today. They are traded at premiums that are close to the spot price of gold, which could mainly be a result of the fact that they are one of the few gold coins that are made from 99.99% pure gold.
The fact that RCM can manufacture the “four nines” fine gold is a testament to its excellence and expertise in the refining process.
Whereas the Canadian Maple Leaf Gold Coin is manufactured in Canada, there are many investors outside of this country who purchase it and use it for the purpose of investment. There are several reasons for this, which include:
- The coin is guaranteed by the Canadian Government
- It is one of the most beautiful gold coins, with its unique design that incorporates the eponymous Canadian Maple Leaf.
- Diversifying one’s gold investment portfolio with international bullion coins comes with its unique benefits, which include an increase in the appeal of one’s precious metal holdings, as well as an increase in the overall liquidity of one’s portfolio.
There are not many coins in the gold investment industry that match up to the popularity of the British Sovereigns. They were first struck by the Royal Mint back in 1817, and have been a favorite amongst the investors who prefer gold coins. Gold British Sovereign coins have a face value of one sterling pound and were initially issued as circulating coins. With time, however, they have become dominantly used for trade and bullion investment purposes.
The obverse and reverse of this coin feature impressive designs, as described below:
- Obverse – Queen Elizabeth II
- Reverse – Saint George and the dragon ( this is a well-known design by Benedetto Pistrucci).
In more recent times, the Royal Mint has produced the gold British Sovereigns mainly for use by bullion investors. It is common to find most investors who purchase this coin also purchasing the modern Gold Britannia coins, to add to their precious metal investment portfolio.
In addition to being a coin that is loved by bullion investors, the gold British Sovereign has also found its place in the hearts of coin collectors. There is no denying that this coin’s appeal is worth the attention of coin collectors, moreso those who are out to create date sets and type sets of such coins. Another factor that contributes to this coin being quite popular is the fact that even its vintage versions also trade for a price that is right above the melt value. This in itself makes them quite affordable to many investors and collectors.
Austrian Philharmonic Gold Coin
This coin may easily be the top-most traded coin of its kind across continental Europe. Issued by the Austrian Mint, the gold versions come in different sizes, which include the 1/10 ounce coin and the 1-ounce coin. Some investors also refer to this coin as the Vienna Gold Philharmonic, a name that has stuck very since 1989, when it quickly spread across the gold market.
The design of this coin borrows heavily from the history of musical arts performed in Vienna. On the obverse of the coin is an array of orchestral instruments, whereas on the reverse of the coin is a depiction of the grand pipe organ found at the music hall in which Vienna’s Philharmonic Orchestra performs regularly. This design is also found on the silver Austrian Philharmonic, since 2008. Investors who purchase the gold Austrian Philharmonic also purchase the silver version as well, just to complement their collection with an equally beneficial precious metal coin.
Frequently Asked Questions on “What is the best gold coin to buy for investment?”
1. Where can I buy gold coins for investment?
You can purchase gold coins from reliable and internationally recognized precious metal dealers, through their online e-commerce platforms, or you can visit a local precious metal coin dealer. The first thing you may want to do before going through with any purchase is to check what other customers have to say about the dealer. If you come across a dealer who has negative reviews, then you should avoid making a purchase from them.
2. How much do gold coins cost?
The price of gold coins varies from one dealer to the next one. It is common to find the same coin selling at different prices, hence the need to always shop around. Prudent gold investors always compare different offerings before making their decision on how much to spend on particular gold coins.
3. Can I buy gold coins for retirement investment?
Yes. You can purchase gold coins through a gold IRA, which is a special type of individual retirement account that allows you to hold alternative assets (mainly IRA-approved precious metals). There are other ways to use gold coins for retirement investment, but gold IRAs are the most common option out there. Investors prefer using gold IRAs since they are tax-advantaged accounts.
4. Are bullion coins better than collector coins?
Depends on what you intend to use the coins for. Different coins in their coin categories usually offer unique benefits to their owners. You, therefore, need to establish what your financial objectives for investing in gold coins are, to have a clear picture of the path that you should follow. If, say, your financial objective is to diversify your retirement investment portfolio by opening a gold IRA, then the only type of coins you are allowed to use are bullion coins.
That will be all for today’s post on what the best gold coin to buy for investment is. Hopefully, you will identify the coin that’s best for you, based on the features we have discovered in today’s post. If possible, you can consider doing within-class asset diversification, by purchasing a few coins of the above-listed types of gold coins. If you still have more questions with regards to today’s topic, drop them in the comments section and I will get back to you ASAP!
I wish you well,
Eric, Investor and Team Member at Gold Retired!