Stacks of gold coins. OK, they aren't real.
There was a point when South Africa cornered the world market on gold bullion. This has changed significantly over the years, and now you can buy official bullion from across the globe. Among the most popular, however, are Australian gold coins.
There are many factors driving this popularity, and it’s not necessary to understand them all. If you’re considering heavily investing in the country’s bullion, though, there are a few things you should know. This will help you make more informed investment decisions.
At Silver Gold Bull, we offer a variety of Australian gold coins to choose from. We created this guide based on frequently asked questions about the nation’s gold currency. With this knowledge, you’ll have everything you need to make a smart purchase.
Before you invest in any gold bullion, you want to know it’s coming from a reputable source. Fortunately, Perth Mint is one of the most trusted producers of coins on earth. It was established in 1899 and initially served as a refinery and mint for the British Empire’s gold currency.
From 1899 to 1931, the mint produced over 106 million British gold coins. The Perth Mint finally left foreign hands and fell under the authority of Australia, but its historic place in gold production and bullion minting continues to this day.
Several other factors show why the Perth Mint — and thus Australian gold coins — stand out so much in the industry:
As long as you buy from a reputable dealer, you can trust you’ll get what you pay for with Australian gold coins. The mint even has a gold crypto token that’s backed by physical gold held in its own vaults.
Other mints certainly have reputations that make them trustworthy among bullion investors. Most of them, however, don’t have the impressive pedigree of the Perth Mint. This is why it’s still revered as a global leader in bullion production.
When investing in Australian gold coins, you’ll most likely come across the Nugget series. Introduced in 1986 and initially featuring a gold nugget design, these coins eventually were changed to feature the kangaroo. Unlike other bullion types, though, the design wasn’t static.
The Australian Gold Nugget represents one of the few gold coins that serve as legal tender and change designs yearly. Most other countries avoid doing this so that no individual year’s coin carries higher collectibility or numismatic value.
Since the design switched to the kangaroo, every year’s release is distinct from the other. This makes it very easy to distinguish between different coins. The one thing that remains the same on each coin is the obverse — which features Queen Elizabeth II.
There are plenty of things that make gold coins from Australia appealing. One reason that stands out among others is the variety available. There are certainly different sizes and denominations of each coin, but the diversity goes far beyond that.
In addition to the many Gold Nugget designs available, the Perth Mint also produces a Lunar Series of coins featuring a variety of animals. They have several colorized gold pieces as well — along with a beautiful release featuring the popular emu bird.
If you have an affinity for Australian and American coinage, the War in the Pacific gold coin will satisfy both cravings. It commemorates the two countries’ partnership that helped end World War II. It also features .9999 pure gold, so it’s as intrinsically valuable as it is historic.
One of the biggest mistakes made by new investors involves choosing the wrong denomination. Since designs between denominations are the same, this is an easy mistake to make when buying online. That’s especially the case if you’re buying from a private seller.
By looking at the denominations of Australian Gold Nuggets, you will immediately know their gold content. This will help you figure out their current value and how much you should pay. Some of these values have changed over the years, so pay close attention when investing.
This list didn’t include the 1-tonne kangaroo coin with a face value of $1 million. That coin is more of a museum piece and is on permanent display at the Perth Mint’s Gold Exhibition. As evidenced by the above list, though, you can still purchase massive Australian gold coins.
Regardless of the denomination, the intrinsic value of these coins will always be higher. For instance, the $1 million coin created by the mint had a value of at least AU$50 million when minted. While the other coins aren’t nearly this valuable, intrinsic value is where the real money is.
Because of their yearly changing designs, nuggets from different years can have higher collectibility value. This means two similar coins with the same gold content could sell for very different prices. This makes the nugget special even among Australian gold coins.
The value of these coins can also increase due to low mintage numbers from the Perth Mint. Fortunately, this doesn’t necessarily mean you’ll pay a higher premium relative to other coins. Many of the most popular gold bullion options have very similar premiums.
When you start delving into special editions, though, this can change drastically. For instance, the Lunar Series coins often sell for more than traditional nuggets. While you may get less gold per dollar, the collectibility factor will remain if you decide to sell the coin.
If you’re new to bullion investing, you may wonder how Australian gold coins stack up to other countries’ offerings. Fortunately, this is easy to figure out by simply looking at what the coins sell for. It’s important to remain vigilant, though, because comparisons aren’t always “apples to apples.”
If you look at Canadian Maple Leafs or Austrian Philharmonics, you’ll find coins with the same gold purity as Australian nuggets (i.e., .9999). On the other hand, American Gold Eagles and South African Krugerrands have lower purity levels (i.e., .9167).
This is surprising to many people since Krugerrands and Eagles typically sell for a higher premium than most Australian gold coins. This is just another example of why vigilance is essential. You should know exactly what you’re getting with every purchase you make.
There are a variety of gold coins available for collectors and investors alike. Of course, few of them have the combination of beauty, numismatic value, and high gold content offered by Australian coins. This is why the country’s bullion has become one of the most popular in the world.
The most important thing to remember about Australian gold coins is the premium. While the common nugget coin may be comparable in price to other nations’ coins, special production pieces can cost much more. Of course, they typically also have a higher value.
At Silver Gold Bull, we strive to provide the widest selection of bullion options to our clients. Whether you’re interested in Australian gold coins or American rarities, we have you covered. Visit our Gold Bullion page today to find the absolute best prices on precious metal items.
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