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The historic rise of gold’s value in recent years has opened the eyes of even the most pessimistic investors. The precious metal once spent a decade valued lower than platinum, but it’s since gone on an impressive run. This has left many asking which gold coins to buy.
Mints from across the globe have produced their own gold coins for decades. Of course, you won’t always get the same value. This is why your gold investing strategy should focus on specific coins and mints.
Rather than delving into all the gold coins to buy for a sound investment strategy, this guide will touch on some of the most valuable. You’ll also learn what to avoid when investing in gold coins. With any luck, you’ll be ready to perfect your precious metal investment strategy in no time.
Best Gold Coins to Buy
There’s a massive selection of gold coins available for purchase. In fact, there are so many that trying to fit them all in a single guide would prove to be a folly. This is why we’ve condensed the list down to the best gold coins for investing purposes.
Not only are these coins coveted globally, but they also have high precious metal content. This means they’ll serve as both a brilliant investment and a tremendous store of value.
1. American Gold Eagle
America didn’t offer the first modern gold bullion coin. It also doesn’t have the highest purity out of the many gold coins to buy for investment. Due to its beauty and government guarantee, though, the American Gold Eagle is still one of the most popular bullion options on the market.
Offering a full troy ounce of 91.67% pure gold, this coin provides intrinsic worth that far exceeds its $50 face value. And while you can still find these pieces from reputable dealers, the U.S. Mint is having an increasingly difficult time keeping up with demand.
2. South African Krugerrand
When the South African Krugerrand coin hit the market in 1967, those seeking gold coins to buy didn’t have many choices. The American Eagle and Canada’s own bullion offerings wouldn’t come out for another decade or more. If you wanted bullion, the Krugerrand was the answer.
This helps explain why most gold coins on the market are Krugerrands. Many countries outlawed them due to South Africa’s apartheid policies, but the sanction was lifted once those policies ended. This means you can now easily buy the world’s most common gold coin.
3. Canadian Maple Leaf
The Royal Canadian Mint has made history on multiple occasions, but it’s the Canadian Gold Maple Leaf that offers staying power. Since its release in 1979, it’s remained one of the most popular gold coins to buy. Its unchanged design also makes it one of the most recognized in the world.
4. Chinese Gold Panda
If you’re looking for the most adorable way to invest in bullion, the Chinese Gold Panda is your best bet. It comes in a variety of different sizes — thus offering the ability to invest at any level. And thanks to the many designs offered, it is also a favorite among collectors.
5. American Gold Buffalo
The Buffalo Head nickel is one of the most iconic American coins in history. It only makes sense that the U.S. Mint would reproduce the imagery on modern bullion coins. American Gold Buffalos are nearly identical to their predecessors — save for the gold — and just as popular as the original.
The coin also contains an ounce of 9999 pure gold. So if you’re looking to get the most bullion when seeking gold coins to buy, this specimen is an even better option than the popular American Eagle.
Considerations When Researching Gold Coins to Buy
The five coins we’ve discussed are certainly among the most popular around the world. Of course, you don’t have to confine yourself to these selections. Even the world’s tiniest countries — such as Monaco and Nauru — have produced gold coins in their mints.
Regardless of the coinage you’re leaning toward, though, it’s imperative that you consider several factors. Whether you’re buying public or private strikings, paying attention to the following elements will help you make a smarter investment decision.
- Check the purity: When looking for gold coins to buy, paying attention to purity is vital. Even with similar metal weights, the precious metal content can differ. Think of the American Eagles and Buffalos — both an ounce of gold — but with a purity difference of about 8 percentage points.
- Pay attention to size: While many countries have official gold bullion coins, they often offer these selections in various sizes. For instance, Canadian Maple Leafs now come in over five different denominations. Each of these has a different metal content.
No one can honestly say they know the best gold coins to buy. It all comes down to individual preference and investor strategy. If you do your research and know what you’re buying, though, you can trust that you’re making a sound investment.
Find Gold Coins to Buy from Reputable Dealers
When you invest in gold coins, it’s important to only buy items produced by major mints. These can be private or federal organizations, but the important thing is that they come with a guarantee. Unfortunately, focusing on these coins may not always protect your investment.
That’s because there’s a modern epidemic of fake gold coins on the market. This is no surprise considering how the precious metal’s value has increased in recent years. And without a trained eye, it’s highly unlikely that most people can differentiate between authentic and fake pieces.
This is why it’s so important to go through reputable dealers when looking for gold coins to buy. On top of the guarantee you get from issuing mints, prominent dealers also have a reputation to uphold. By purchasing directly from these dealers, you’ll ensure your investment is solid.
Avoid Buying Rare Gold Coins
When researching the best gold coins to buy, you’ll no doubt come across rarities. From ancient dinars to low-mintage modern offerings, these can offer an investment that holds more than just their value in gold. When you purchase these, however, it’s not bullion you’re investing in.
Instead, your money gets tied up in numismatic value. While this can certainly offer a significant return on investment, the precious metal itself has very little to do with it. Of course, this also means the value of a rare coin can decrease even as if the price of gold is on the rise.
Additionally, you may run into other issues if you opt for rarities when seeking the best gold coins to buy:
- Gold is king: When you buy common bullion products, the only thing you have to worry about is spot value. External factors like collector demand can affect your investment in rarities.
- Lower liquidity: Selling gold coins is an easy process thanks to constant demand. When a coin carries heavy numismatic value, you may need to search for the right buyer.
- Potential for surprises: There have been many examples of people finding hoards of rare coins. When this happens, the coin becomes less rare. This can drastically decrease your investment’s value.
While you should certainly recognize the potential for these issues, they don’t mean rare gold items are a poor investment. It’s simply vital that you know exactly what you’re investing in. As long as you do your research, purchasing rarities can be a very lucrative strategy.
If your goal is to invest in precious metals, though, it’s best to stick with bullion. This will simplify your financial strategy while making buying and selling a straightforward process.
The Best Gold Coins to Buy Depend on You
While this guide discussed specific gold coins that serve as smart investments, our list is far from exhaustive. There are countless gold coins from around the world — dozens from the Royal Canadian Mint alone — and all of them are amazing for precious metals investing.
The most important thing you can do is follow the strategies presented in this guide when choosing gold coins to buy. This will ensure you get a fair price on an investment that stores value for the future. And by diversifying your holdings, you’ll increase your portfolio’s resiliency.
At Silver Gold Bull, we strive to ensure all our clients are informed investors. Reach out to us with questions you may have. And if you’re ready to start your bullion investing journey now, visit our Gold Bullion Products page today.
