Buying Gold Coins as an Investment

Why Adding Gold to an Investment Portfolio is a Good Idea

When you have a portfolio made up of assets or commodities, such as real estate, stocks, bonds, oil, or derivatives, you don’t want to overlook adding precious metals to your account. Therefore, any prudent investor should include gold coins in his long-term portfolio. Not only can gold coinage take up any slack in the market, the metals retain their worth over the years. Plus, you can sell gold about any place on the planet. So, to get the most for the investment dollars that you spend, you’ll want to make it a priority to subsidize your holdings with this ever-popular metal.



Tips For Buying Gold Coins


Making Gold a Part of Your Investments

Most people will buy gold in the form of coins for three primary reasons – for investment purposes, for collecting, or as a form of financial protection. If you want to invest in gold then, your best choices will be found among bullion coins that are minted by the government. The most popular of these investments is the American Gold Eagle.

The Alloy Content

Not only is the Gold Eagle easily recognizable, its purity and content are guaranteed by the federal government. Plus, the coin is legal tender and can be included in a self-directed IRA account. Minted with an alloy that contains about 91.5% gold and the remainder in silver and copper, the coin meets all the standards for market purity.

A Resilient Gold Coin

While the coins are not .999 fine, they are coins that are more resilient because of their alloy mix. That’s because 24k gold can be quite soft and malleable. Therefore, the metal is also more susceptible to scratches or dings. However, the American Eagle’s 22k gold alloy mix keeps the coin protected against wear-and-tear. As a result, the numismatic value of the coin is also retained.

American Eagle Weights

The United States Mint makes gold Eagles in sizes of 1/10 oz., ¼ oz., ½ oz. and 1 ounce. For investment purposes, it’s best to choose the one-ounce sized coins.

Other Kinds of Gold Bullion Coins

Besides the American Eagle, you might consider some other gold bullion coins for investment too. The South African Krugerrand and Canadian Maple Leaf feature lower premiums than the Eagle coin, but are still recognizable worldwide. Not only can both the coins be affordably included in a portfolio, they also serve as good hedges in an uncertain market. Besides these two popular coins, you may be interested in Chinese Panda coins, Mexican Libertads, Austrian Philharmonics, or British Sovereigns as well.

The First U.S. Gold Coins

In the U.S., the first coins made of gold were minted just a couple years after the minting of the first copper coins – in 1795. The first gold coin was the Half Eagle whose face value was $5. The second gold coin minted had a face value of $10.

A year later, or in 1796, a gold Quarter Eagle was minted, which had a face amount of $2.50. The $20 Double Eagles, from which the American Eagle is replicated, were not made for many years – or until 1907. Both the Double Eagle and American Eagle are unique in that they are the only examples of U.S. coinage that denotes the year with Roman numerals.