What to look for when buying gold coins?
For people looking to buy gold for the first time gold bullion coins certainly present an attractive investment opportunity. It is possible to buy gold coins directly from mints like the Royal mint in the UK, If you are buying second hand coins be sure to use reputable dealers or websites as they may misinform you regarding the gold content of a coin and overcharge you. If you are looking at buying rare or older coins, it would be a good idea to have the coin appraised before finalising the deal in order to prove the coin is genuine.
The gold Krugerrand
What coin to buy?
When deciding what coins to buy, it is important to consider a number of
factors. If the gold content, i.e. the carat, of the coin is the most
important factor then gold Krugerrands represent the best value for money. Krugerrands have the same 22 carat gold content as the American Gold Eagle and the Canadian Maple Leaf but troy ounce Krugerrands have the lowest premium above the intrinsic value of the gold coin.
This is mainly due to its simple design. It was conceived as a lump
of gold with a face stamped on it when it was first struck back in 1967
and it has stayed fairly true to its original design. If you decide
against the gold Krugerrand then check the gold coin prices on the internet to see which other bullion coins are within your budget.
For those who would like to buy more aesthetically pleasing coins then the British Britannia coin or the American Gold Eagle would be better options. The British gold Sovereign is also a very popular coin for collectors and can be bought in a variety of weights and designs. Rare coins are also very attractive investments, like old gold Sovereigns minted in the 19th century as their actual value will be far greater than their intrinsic value based on their historical significance. You will, of course, have to pay more for them but you will be more likely to make a profit on them if you ever consider selling them. In general, for first time buyers the South African gold Krugerrands present the safest investment given the initial outlay and the low premium as well as the potential profits to be made from selling it at a later date.