The Ultimate Guide to Investing in Gold Coins in 2018

The Ultimate Guide to Investing in Gold Coins in 2023

Gold coins have been a popular investment for centuries, and for good reason. They offer a number of advantages over other forms of investment, including their stability, liquidity, and portability. In this guide, we’ll take a closer look at the different types of gold coins available, the factors to consider when investing in them, and where to buy and store them. So what are you waiting for? Let’s get started!

Key Insights

Gold coins offer a number of advantages over other forms of investment, including their stability, liquidity, and portability.
There are a variety of gold coins available, each with its own unique characteristics.
When investing in gold coins, it is important to consider the purity, weight, and condition of the coins.
There are a number of places where you can buy gold coins, including online dealers, coin shops, and banks.
It is important to store your gold coins safely to protect them from theft and damage.

1. Why Invest in Gold Coins?

Gold coins have been a popular investment for centuries, and for good reason. They offer a number of advantages over other forms of investment, including their stability, liquidity, and portability.

Stability

Gold has a long history of holding its value, even during periods of economic uncertainty. This is because gold is a real asset, meaning that it has intrinsic value. Unlike paper currencies, which can be inflated away by governments, gold’s value is determined by the market. This makes it a safe haven asset that investors can turn to when they are worried about the economy.

Liquidity

Gold coins are easy to buy and sell, making them a liquid asset that can be quickly converted into cash when needed. This is important for investors who may need to access their money at short notice. There is always a ready market for gold coins, so you can be sure that you will be able to sell your coins when you need to.

Portability

Gold coins are small and easy to transport, making them a convenient way to store your wealth. This is especially important for investors who are concerned about the safety of their assets. If you need to move your wealth quickly, gold coins are a great option.

Stability

One of the best examples of gold’s stability is its performance during the Great Depression. In 1929, the stock market crashed and the global economy went into a tailspin. However, the price of gold actually increased during this period. This is because investors flocked to gold as a safe haven asset. They knew that gold’s value would hold up, even during a recession.

Gold also performed well during the recent financial crisis of 2008. When the housing market collapsed and the global economy went into recession, the price of gold again increased. This shows that gold is a good investment to have during uncertain times.

Of course, the price of gold does fluctuate. However, over the long term, gold has always maintained its value. This is why it is considered to be a safe haven asset.

Liquidity

There is always a ready market for gold coins, so you can be sure that you will be able to sell your coins when you need to. This is in contrast to some other investments, such as real estate, which can be difficult to sell quickly.

Gold coins are also easy to transport, so you can take them with you if you need to. This makes them a good option for investors who are concerned about the safety of their assets.

Here are some tips for buying and selling gold coins:

When buying gold coins, it is important to do your research and choose a reputable dealer.
When selling gold coins, it is important to get a fair price. You can do this by getting quotes from multiple dealers.
You can buy and sell gold coins online, at coin shops, and at banks.

Portability

You can store gold coins in a safe deposit box, at home, or even on your person. This gives you the flexibility to access your wealth whenever you need it.

Here are some tips for storing gold coins:

Store your gold coins in a safe place. This could be a safe deposit box, a home safe, or even a safety deposit box at your bank.
Make sure your gold coins are insured. This will protect you in the event of theft or loss.
Keep your gold coins organized. This will make it easier to track your wealth and to access your coins when you need them.

2. Types of Gold Coins

There is a wide range of gold coins available to investors, each with its own unique characteristics and target market. Sovereign coins are legal tender in their country of origin and often feature the likeness of the reigning monarch. Examples include the British Sovereign, the American Eagle, and the Canadian Maple Leaf.

Bullion coins are produced by private mints and are not legal tender. They are typically sold at a premium over the spot price of gold and are popular with investors who are looking for a way to own physical gold without having to pay the high premiums associated with sovereign coins. Examples include the American Buffalo, the Austrian Philharmonic, and the South African Krugerrand.

Collectible or numismatic coins have historical or artistic significance and are often sought after by collectors. These coins can be very valuable, depending on their rarity and condition. Examples include ancient Greek coins, Roman coins, and medieval coins.

Sovereign Coins

Sovereign coins are gold coins that are minted by governments and are legal tender in their country of origin. This means that they can be used to make purchases in that country, although their value as a collector’s item often exceeds their face value. Sovereign coins are typically made of 22-karat gold and are issued in various denominations, such as 1 ounce, 1/2 ounce, and 1/4 ounce.

Some of the most popular sovereign coins include:

The British Sovereign: The Sovereign is one of the most well-known and widely collected gold coins in the world. It was first minted in 1489 and has been issued continuously ever since. The obverse of the coin features the reigning monarch, while the reverse features St. George slaying a dragon.
The American Eagle: The American Eagle is the official gold coin of the United States. It was first minted in 1986 and is available in four different sizes: 1 ounce, 1/2 ounce, 1/4 ounce, and 1/10 ounce. The obverse of the coin features the Statue of Liberty, while the reverse features a bald eagle in flight.
The Canadian Maple Leaf: The Maple Leaf is the official gold coin of Canada. It was first minted in 1979 and is available in four different sizes: 1 ounce, 1/2 ounce, 1/4 ounce, and 1/10 ounce. The obverse of the coin features a maple leaf, while the reverse features Queen Elizabeth II.

Bullion Coins

Bullion coins are gold coins that are produced by private mints and are not legal tender. This means that they are not backed by any government and cannot be used to make purchases. However, bullion coins are still popular with investors because they offer a way to own physical gold without having to pay the high premiums associated with sovereign coins.

Bullion coins are typically made of 24-karat gold and are issued in various denominations, such as 1 ounce, 1/2 ounce, 1/4 ounce, and 1/10 ounce. Some of the most popular bullion coins include:

The American Buffalo: The American Buffalo is one of the most popular bullion coins in the world. It was first minted in 2006 and is available in four different sizes: 1 ounce, 1/2 ounce, 1/4 ounce, and 1/10 ounce. The obverse of the coin features the American buffalo, while the reverse features a Native American chief.
The Austrian Philharmonic: The Austrian Philharmonic is another popular bullion coin. It was first minted in 1989 and is available in four different sizes: 1 ounce, 1/2 ounce, 1/4 ounce, and 1/10 ounce. The obverse of the coin features the Vienna Philharmonic Orchestra, while the reverse features a pipe organ.
The South African Krugerrand: The Krugerrand is the official gold coin of South Africa. It was first minted in 1967 and is available in four different sizes: 1 ounce, 1/2 ounce, 1/4 ounce, and 1/10 ounce. The obverse of the coin features the springbok, while the reverse features Paul Kruger, the former president of South Africa.

Collectible Coins

Collectible coins are gold coins that are rare or have historical significance. They are often sought after by collectors and can be very valuable, depending on their rarity and condition. Some of the most popular collectible gold coins include:

Ancient Greek coins: Ancient Greek coins are some of the oldest and most valuable collectible coins in the world. They were first minted in the 7th century BC and feature a variety of designs, including gods, goddesses, and animals.
Roman coins: Roman coins are another popular type of collectible coin. They were first minted in the 3rd century BC and feature a variety of designs, including emperors, empresses, and gods.
Medieval coins: Medieval coins were minted in Europe during the Middle Ages. They feature a variety of designs, including kings, queens, and religious figures.

Collectible gold coins can be a good investment, but it is important to do your research before you buy. You should make sure that you are buying a genuine coin and that you are paying a fair price. You should also store your coins in a safe place to protect them from damage.

3. Factors to Consider When Investing in Gold Coins

There are a number of factors to consider when investing in gold coins, including the purity, weight, and condition of the coins.

Purity

The purity of a gold coin is measured in karats. The higher the karat, the purer the gold. The most common gold coins are 24-karat, which means that they are made of pure gold. However, some gold coins are made of lower-karat gold, such as 22-karat or 18-karat. These coins are less pure, but they are also less expensive.

Weight

The weight of a gold coin is measured in troy ounces. The most common gold coins are 1 ounce, 1/2 ounce, 1/4 ounce, and 1/10 ounce. The weight of a gold coin will affect its price. Heavier coins are more expensive than lighter coins.

Condition

The condition of a gold coin refers to its physical appearance. Coins that are in good condition are worth more than coins that are damaged or worn. The condition of a gold coin is graded on a scale from 1 to 70, with 70 being the highest grade.

When investing in gold coins, it is important to consider all of these factors. The purity, weight, and condition of the coins will all affect their price and value.

Purity

The purity of a gold coin is important because it affects its value. Pure gold is more valuable than gold that is mixed with other metals. The karat of a gold coin is stamped on the coin, so it is easy to identify the purity of a coin.

When investing in gold coins, it is important to consider the purity of the coins. The higher the karat, the more valuable the coin will be. However, you should also consider your budget. If you are on a tight budget, you may want to consider buying lower-karat gold coins.

Weight

The weight of a gold coin is measured in troy ounces. The most common gold coin weights are 1 ounce, 1/2 ounce, and 1/4 ounce. The weight of a gold coin will affect its price. Heavier coins are more expensive than lighter coins.

The weight of a gold coin is also important for determining its purity. Pure gold is very dense, so a heavy gold coin is likely to be pure gold. However, a light gold coin may be made of a less pure gold alloy.

When investing in gold coins, it is important to consider the weight of the coins. The heavier the coin, the more gold it contains and the more valuable it will be. However, you should also consider your budget. If you are on a tight budget, you may want to consider buying lighter gold coins.

Condition

The condition of a gold coin refers to its physical appearance. Coins that are in good condition are worth more than coins that are damaged or worn. The condition of a coin is graded on a scale from 1 to 70, with 70 being the highest grade.

There are a number of factors that can affect the condition of a gold coin, including:

Scratches and dings: Scratches and dings are the most common type of damage to gold coins. They can occur during the minting process, or they can be caused by wear and tear.
Bends and folds: Bends and folds can also damage gold coins. They can occur if the coin is dropped or if it is stored improperly.
Corrosion: Corrosion is another type of damage that can affect gold coins. It can occur if the coin is exposed to moisture or chemicals.

When investing in gold coins, it is important to consider the condition of the coins. Coins that are in good condition are worth more than coins that are damaged or worn. However, you should also consider your budget. If you are on a tight budget, you may want to consider buying coins that are in lower condition.

Here are some tips for storing gold coins to protect their condition:

Store your coins in a safe place, such as a safe deposit box or a home safe.
Wrap your coins in soft cloth or paper to protect them from scratches.
Keep your coins away from moisture and chemicals.
Have your coins professionally graded if you are planning to sell them.

4. Where to Buy Gold Coins

There are a number of places where you can buy gold coins, including online dealers, coin shops, and banks.

Online dealers are a convenient way to buy gold coins from the comfort of your own home. There are a number of reputable online dealers that sell gold coins, including:

JM Bullion
APMEX
Provident Metals

When buying gold coins from an online dealer, it is important to do your research and make sure that you are dealing with a reputable company. You should also compare prices from different dealers to get the best deal.

Coin shops are another good place to buy gold coins. Coin shops typically have a wider selection of gold coins than online dealers, and they can also provide you with expert advice. However, coin shops often charge higher prices than online dealers.

Banks are also a safe place to buy gold coins. However, banks typically have a limited selection of gold coins, and they often charge higher prices than online dealers and coin shops.

When buying gold coins, it is important to consider the following factors:

The price of gold: The price of gold fluctuates constantly, so it is important to check the current price before you buy. You can find the current price of gold on websites such as Kitco and GoldPrice.org.
The premium: The premium is the amount of money that you will pay over the spot price of gold. The premium varies depending on the type of coin, the dealer, and the market conditions.
The shipping costs: If you are buying gold coins online, you will need to factor in the cost of shipping.

Once you have considered all of these factors, you can start shopping for gold coins.

Online Dealers

Online dealers are a convenient way to buy gold coins from the comfort of your own home. There are a number of reputable online dealers that sell gold coins, including:

JM Bullion
APMEX
Provident Metals

Here are some of the advantages of buying gold coins from an online dealer:

Convenience: You can buy gold coins from an online dealer from the comfort of your own home. You don’t have to go to a coin shop or a bank, and you can shop around for the best prices without leaving your house.
Selection: Online dealers typically have a wider selection of gold coins than coin shops or banks. You can find a variety of gold coins from different countries and mints, and you can even find rare and collectible coins.
Prices: Online dealers often have lower prices than coin shops or banks. This is because they don’t have the same overhead costs, such as rent and utilities.

However, there are also some disadvantages to buying gold coins from an online dealer:

Shipping costs: You will need to pay for shipping when you buy gold coins from an online dealer. The shipping costs will vary depending on the weight of the coins and the shipping method that you choose.
Security: When you buy gold coins from an online dealer, you are trusting them to send you the coins that you ordered. It is important to make sure that you are dealing with a reputable company before you place an order.

Overall, online dealers are a convenient and affordable way to buy gold coins. However, it is important to do your research and make sure that you are dealing with a reputable company before you place an order.

Coin Shops

Coin shops are a great place to buy gold coins if you want to see the coins in person before you buy them. Coin shops typically have a wide selection of gold coins, and they can also provide you with expert advice. However, coin shops often charge higher prices than online dealers.

Here are some of the advantages of buying gold coins from a coin shop:

You can see the coins in person: This is important if you are buying rare or collectible coins. You want to make sure that the coins are genuine and that they are in good condition.
You can get expert advice: Coin shop owners are usually very knowledgeable about gold coins. They can help you choose the right coins for your needs and budget.
You can build a relationship with a dealer: If you buy gold coins from a coin shop on a regular basis, you can build a relationship with the dealer. This can give you access to better prices and exclusive deals.

However, there are also some disadvantages to buying gold coins from a coin shop:

Higher prices: Coin shops typically charge higher prices than online dealers. This is because they have higher overhead costs, such as rent and utilities.
Limited selection: Coin shops may not have as wide a selection of gold coins as online dealers. This is because they have limited space to display their inventory.

Overall, coin shops are a good place to buy gold coins if you want to see the coins in person before you buy them. However, you should be prepared to pay higher prices than you would if you bought online.

Banks

Banks are a safe place to buy gold coins, but they often charge higher prices than other dealers. This is because banks have higher overhead costs, such as rent and utilities. Banks also typically have a limited selection of gold coins.

Here are some of the advantages of buying gold coins from a bank:

Safety: Banks are one of the safest places to buy gold coins. Your coins will be stored in a secure vault, and you will be insured against theft and loss.
Convenience: Banks are located in most cities and towns, so you can easily find one near you.
Reputation: Banks have a long-standing reputation for trustworthiness and reliability.

However, there are also some disadvantages to buying gold coins from a bank:

Higher prices: Banks typically charge higher prices for gold coins than other dealers. This is because they have higher overhead costs.
Limited selection: Banks typically have a limited selection of gold coins. This is because they have limited space to display their inventory.
Sales pressure: Bank employees may be under pressure to sell gold coins, even if they are not a good investment for you.

Overall, banks are a safe place to buy gold coins. However, you should be prepared to pay higher prices than you would if you bought from an online dealer or a coin shop.

Here are some tips for buying gold coins from a bank:

Do your research: Before you buy gold coins from a bank, do your research and compare prices from different dealers. This will help you get the best deal.
Ask about fees: Banks may charge fees for buying and selling gold coins. Be sure to ask about these fees before you make a purchase.
Get it in writing: When you buy gold coins from a bank, be sure to get a receipt that includes the price of the coins, the date of purchase, and the name of the bank.

By following these tips, you can safely and securely buy gold coins from a bank.

5. How to Store Gold Coins

It is important to store your gold coins safely to protect them from theft and damage. There are many different storage items and methods, so it is important that you select the one that is right for you and your coins.

One option is to store your gold coins in a safe deposit box at your bank. This is a secure option, as the bank will have security measures in place to protect your coins. However, it can be expensive to rent a safe deposit box.

Another option is to store your gold coins at home. This is a less expensive option, but it is important to make sure that your home is secure. You should also consider purchasing a home safe to store your coins in.

If you store gold coins at home, be sure to take the following precautions:

Keep your coins in a safe place. This could be a safe, a locked cabinet, or a hidden location.
Wrap your coins in soft cloth or paper to protect them from scratches.
Keep your coins away from moisture and chemicals.
Have your coins professionally graded if you are planning to sell them.

No matter where you choose to store your gold coins, it is important to take steps to protect them from theft and damage. By following these tips, you can keep your gold coins safe and secure.

Home Storage

You can store your gold coins at home in a safe or a safety deposit box. A safe is a secure container that is designed to protect your valuables from theft and fire. Safety deposit boxes are located at banks and other financial institutions, and they offer a higher level of security than home safes.

Home safes

Home safes are available in a variety of sizes and styles. When choosing a home safe, it is important to consider the following factors:

Size: The size of the safe should be large enough to store your gold coins and any other valuables that you want to protect.
Weight: The weight of the safe is important because it will affect how easy it is to move. A heavier safe is more difficult to steal.
Security features: The safe should have a number of security features, such as a locking mechanism, a combination lock, and a deadbolt.

Safety deposit boxes

Safety deposit boxes are located at banks and other financial institutions. They are typically made of steel or concrete, and they are designed to protect your valuables from theft, fire, and natural disasters.

Safety deposit boxes are more secure than home safes, but they are also more expensive. You will need to pay a monthly fee to rent a safety deposit box.

Which is right for you?

The best way to store your gold coins depends on your individual needs and budget. If you have a large number of valuable coins, you may want to consider renting a safety deposit box. If you have a smaller number of coins, you may be able to get by with a home safe.

No matter which storage option you choose, it is important to take steps to protect your gold coins from theft and damage. By following these tips, you can keep your gold coins safe and secure.

Bank Storage

You can also store your gold coins in a bank vault. Bank vaults are designed to protect valuables from theft, fire, and natural disasters. They are typically made of steel or concrete and have multiple layers of security, such as alarms, motion sensors, and video surveillance.

To store your gold coins in a bank vault, you will need to rent a safe deposit box. Safe deposit boxes are available in a variety of sizes, so you can choose one that is large enough to store your coins and any other valuables that you want to protect.

Bank vaults are more secure than home safes, but they are also more expensive. You will need to pay a monthly fee to rent a safe deposit box.

Here are some of the advantages of storing your gold coins in a bank vault:

Security: Bank vaults are designed to protect your valuables from theft, fire, and natural disasters. They are typically made of steel or concrete and have multiple layers of security, such as alarms, motion sensors, and video surveillance.
Convenience: Bank vaults are located in convenient locations, so it is easy to access your gold coins when you need them.
Insurance: Bank vaults are insured, so your gold coins will be protected in the event of a theft or disaster.

Here are some of the disadvantages of storing your gold coins in a bank vault:

Cost: Bank vaults are more expensive than home safes. You will need to pay a monthly fee to rent a safe deposit box.
Access: Bank vaults are not accessible 24/7. You will need to visit the bank during business hours to access your gold coins.

Overall, bank vaults are a secure and convenient way to store your gold coins. However, they are more expensive than home safes. If you have a large number of valuable coins, you may want to consider renting a bank vault. If you have a smaller number of coins, you may be able to get by with a home safe.

6. Investing in Gold Coins: A Smart Move

Investing in gold coins can be a smart move for investors who are looking for a way to diversify their portfolio and protect their wealth. Gold is a safe haven asset, meaning that it tends to hold its value during periods of economic uncertainty. This makes it a good investment to have when you are worried about the economy or the stock market.

Gold coins are also a good way to store your wealth. They are portable and easy to transport, so you can take them with you if you need to. Gold coins are also divisible, so you can buy or sell them in any amount that you want.

Here are some of the benefits of investing in gold coins:

Diversification: Gold coins can help you diversify your portfolio. This means that you are not putting all of your eggs in one basket. If the stock market crashes, your gold coins will still be worth something.
Protection against inflation: Gold coins can help protect your wealth against inflation. Inflation is the rate at which prices increase over time. As inflation rises, the value of your money goes down. Gold coins, on the other hand, tend to hold their value during periods of inflation.
Portability: Gold coins are portable and easy to transport. This makes them a good investment to have if you are worried about the safety of your other assets. You can take your gold coins with you if you need to evacuate your home or if you are traveling to a foreign country.

If you are considering investing in gold coins, there are a few things you should keep in mind. First, the price of gold fluctuates, so it is important to do your research before you buy. Second, gold coins can be expensive, so it is important to set a budget before you start shopping. Finally, gold coins are not insured by the FDIC, so it is important to store them in a safe place.

7. Additional Resources

Here are some additional resources that you may find helpful:

American Numismatic Association: The American Numismatic Association is a non-profit organization that promotes the study and collection of coins. Their website has a wealth of information on gold coins, including articles, videos, and a directory of coin dealers.
GoldSilver.com: GoldSilver.com is an online dealer of gold and silver coins. Their website has a lot of helpful information on investing in gold coins, including a gold price chart and a guide to buying gold coins.
World Gold Council: The World Gold Council is a trade association that represents the gold industry. Their website has a lot of information on the gold market, including reports on gold supply and demand and forecasts for the gold price.

American Numismatic Association

The American Numismatic Association (ANA) is a non-profit organization that promotes the study and collection of coins. Founded in 1891, the ANA is the oldest and largest coin organization in the United States. The ANA has a membership of over 25,000 coin collectors and enthusiasts.

The ANA offers a variety of services to its members, including:

A monthly magazine, The Numismatist
A library of over 100,000 books and journals on coins
A certification program for coin collectors
A network of local coin clubs across the country

The ANA also hosts a number of educational programs and events throughout the year, including the World’s Fair of Money, which is the largest coin show in the world.

If you are interested in learning more about coins, the ANA is a great resource. The ANA’s website has a wealth of information on coins, including articles, videos, and a directory of coin dealers.

Here are some of the benefits of joining the ANA:

You will receive a subscription to The Numismatist, which is the leading coin magazine in the United States.
You will have access to the ANA’s library, which is one of the largest coin libraries in the world.
You will be able to participate in the ANA’s certification program, which is the most respected coin certification program in the United States.
You will be able to network with other coin collectors and enthusiasts through the ANA’s network of local coin clubs.

If you are interested in joining the ANA, you can visit their website at www.money.org.

GoldSilver.com

GoldSilver.com is an online dealer of gold and silver coins. They offer a wide variety of coins, including bullion coins, sovereign coins, and collector coins. GoldSilver.com also offers a variety of other precious metals products, such as bars, rounds, and jewelry.

One of the things that sets GoldSilver.com apart from other online coin dealers is their focus on customer service. They have a team of experienced customer service representatives who are available to answer your questions and help you place your order. GoldSilver.com also offers a number of educational resources on their website, such as articles, videos, and a glossary of terms.

Here are some of the benefits of buying from GoldSilver.com:

They offer a wide variety of gold and silver coins.
They have a team of experienced customer service representatives.
They offer a number of educational resources on their website.
They have a good reputation in the industry.

If you are looking to buy gold or silver coins, GoldSilver.com is a good option. They offer a wide variety of coins, have a good reputation, and provide excellent customer service.

World Gold Council

The World Gold Council (WGC) is a trade association that represents the gold industry. The WGC was founded in 1987 by the world’s leading gold producers. The WGC’s mission is to promote the use of gold and to increase the demand for gold.

The WGC does this by conducting research on the gold market, providing educational resources on gold, and promoting gold to investors and consumers. The WGC also works with governments and central banks to promote the use of gold as a reserve asset.

The WGC is a valuable resource for anyone who is interested in learning more about gold. The WGC’s website has a wealth of information on gold, including reports on the gold market, forecasts for the gold price, and educational resources on gold.

Here are some of the benefits of visiting the WGC’s website:

You can learn about the latest trends in the gold market.
You can get forecasts for the gold price.
You can access educational resources on gold.
You can find out how to invest in gold.

If you are interested in learning more about gold, the WGC is a great resource.

What are the benefits of investing in gold coins?

There are several benefits to investing in gold coins, including diversification of your portfolio, protection against inflation, and portability.

What are the different types of gold coins?

There are three main types of gold coins: sovereign coins, bullion coins, and collectible coins.

What should I consider when buying gold coins?

When buying gold coins, you should consider the purity, weight, and condition of the coins.

Where can I buy gold coins?

You can buy gold coins from online dealers, coin shops, and banks.

How should I store gold coins?

You can store gold coins at home in a safe or safety deposit box, or in a bank vault.

Table of Key Insights

| Key Insight | Description | |—|—| | Gold coins offer a number of advantages over other forms of investment. | Gold coins are stable, liquid, and portable. | | There are a variety of gold coins available. | Gold coins come in a variety of types, including sovereign coins, bullion coins, and collectible coins. | | It is important to consider the purity, weight, and condition of gold coins when investing. | The purity, weight, and condition of gold coins will affect their value. | | There are a number of places where you can buy gold coins. | You can buy gold coins from online dealers, coin shops, and banks. | | It is important to store your gold coins safely. | You can store your gold coins in a safe place at home or in a bank vault. |

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